Kauffman v. Cugini Capoccia Builders, Unpublished Decision (6-28-2001)
Kauffman v. Cugini Capoccia Builders, Unpublished Decision (6-28-2001)
Opinion of the Court
OPINION
On February 16, 1994, plaintiffs-appellees, Edward J. Kauffman and Roberta Kauffman, entered into a contract for the construction of a new home by defendant-appellee, Cugini Capoccia Builders, Inc. The contract contained an arbitration clause. The house was completed and appellees took possession but, within six months, appellees noticed defects in the design and construction, and notified appellants of the problems. Appellants made repairs but the problems and defects were more extensive than were observable and, in April or May 1999, appellants informed appellees that no more work would be completed.On April 7, 2000, appellees filed a complaint alleging breach of contract, breach of express warranties, failure to perform in a workmanlike manner, negligent construction, fraud and misrepresentations, deceptive trade practices and violations of the Ohio Consumer Sales Practices Act. Appellees sued the builder and its principals individually, Paul Cugini and Cesidio Capoccia. Appellants sought a stay of the proceedings pending arbitration pursuant to R.C.
The Trial Court erred in denying Appellant's [sic] Motion to stay proceedings and submit matter to Arbitration.
By the assignment of error, appellants contend that the trial court erred in denying the motion to stay proceedings and failing to submit the matter to arbitration. Pursuant to R.C.
In this case, the arbitration clause provided, as follows:
12. Arbitration: In the event of a dispute regarding the Plans, Selection Sheet, workmanship, materials or any other matter in connection with this Agreement, the parties agree that the dispute shall be submitted to arbitration in accordance with the Building Industry Association of Central Ohio arbitration rules. Fees payable to the arbitrators shall be shared equally by the Buyer and Builder.
However, the Building Industry Association of Central Ohio ("BIA") had not established arbitration rules. The trial court did not grant the stay of proceedings, finding that appellants knew or should have known that the BIA did not have arbitration rules. The trial court also found that appellants misrepresented to appellees that all disputes would be arbitrable through the BIA, and appellees' affidavit indicates that they had relied upon the arbitration clause and the ability to submit any dispute to the BIA for arbitration. Thus, the trial court found that appellants knowingly misrepresented the ability to arbitrate the present case and that appellees had relied upon that misrepresentation and did not enforce the arbitration clause.
In the syllabus of ABM Farms, Inc. v. Woods (1998),
A mutual mistake as to a material fact is a mistake "as to a basic assumption on which the contract was made has a material effect on the agreed exchange of performances." Restatement of the Law 2d, Contracts (1979) 385, Mistake, Section 152. The contract provision must be contrary to the understanding of all the parties to the contract. Snedegar v. Midwestern Indem. Co. (1988),
For the foregoing reasons, appellants' assignment of error is overruled, and the judgment of the Franklin County Court of Common Pleas is affirmed.
_________________________ KENNEDY, J.
BOWMAN and PETREE, JJ., concur.
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