After a coverage decision by the arbitration panel, the parties disagreed as to the terms of the security interest agreement as stated in the “Memo of Understanding.” The panel subsequently issued an order directing Robinson Outdoors, Inc. (“Robinson”) to sign the other party’s proposed security agreement, which the trial court confirmed. Before the appellate court, Robinson argued that the panel exceeded its authority when it ordered Robinson to sign the agreement. However, the appellate court found that the record demonstrated that the panel had such authority because: (1) the memo expressly provided for a security agreement; (2) the language in the memo did not limit the scope of arbitration; (3) holding the parties to a broad reading of the scope of arbitration was fair; and (4) such authority was necessary in order to effectuate the intent of the memo. American Employers Ins. Co. v. Robinson Outdoors, Inc., Case No. 25-06-702 (Minn. Ct. App. June 9, 2009).
This post written by Dan Crisp.