Actually I didn't have the axe (I still use the Corpsemaker), only the other shaman did. The Ravager would have been a good upgrade for me; on the other hand, a hunter doesn't really need it since it gives no stats and only has a melee proc. In any case, he did become master looter during the fight and looted it without saying anything, so he's clearly wrong
Fortunately it was just a low level dungeon so it's not a big deal, but if you meet him again just make sure he's not the group leader