C'mon guys. This bug should be a simple bug to fix. I'm a UDK developer, and as such, I think perhaps a socket (or any equivalent of it in Skyrim's Gamebryo) is in a wrong position.
Anybody with a Creation Kit could please take a look at Woodcutter's Axe Model?
And if possible, could you guys upload a mod of it in Nexus? XD
I know I'm asking too much, but...
P.S.: (Socket is something you define in a Skeletal Mesh (A.K.A. any mesh with bones/joints) as a named coordinate based on one of it's bones/joints. They're used for many things, like defining sword slashing ranges, places where the character should hold the weapon and where the weapon should be held at...)