Depalmo v. Schumacher Homes, Inc., Unpublished Decision (2-19-2002)
Depalmo v. Schumacher Homes, Inc., Unpublished Decision (2-19-2002)
Opinion of the Court
ASSIGNMENTS OF ERROR
ASSIGNMENT OF ERROR NUMBER ONE
ASSIGNMENT OF ERROR NUMBER TWOTHE TRIAL COURT ERRED BY DISMISSING THE ACTION FILED BY THE APPELLANTS BECAUSE THE ARBITRATION CLAUSE CONTAINED IN THE LIMITED WARRANTY NOT ONLY VIOLATES THE PRINCIPLES OF CONTRACT LAW AND PUBLIC POLICY BUT ALSO THE VERY TENETS OF OUT CONSTITUTIONAL SYSTEM WHICH GUARANTEES THE RIGHT TO HAVE A TRIAL BY JURY, THE RIGHT TO DUE PROCESS OF LAW, AND THE RIGHT TO HAVE APPELLATE REVIEW.
ASSIGNMENT OF ERROR NUMBER THREETHE TRIAL COURT ERRED BY ENFORCING THE ARBITRATION CLAUSE AGAINST THE APPELLANTS ESPECIALLY WHEN THE CONTRACT BETWEEN THE TWO PARTIES LIMITED THE APPELLANTS' REMEDY TO ARBITRATION AND EXPANDED THE APPELLEE'S REMEDY TO EVERY LEGAL AVENUE OPEN TO A CITIZEN.
THE TRIAL COURT ERRED BY NOT FOLLOWING THE EDICTS OF OHIO REVISED CODE SECTION
2711.03 WHICH STATES THAT A PERSON CHALLENGING THE APPLICABILITY OF THE ARBITRATION CLAUSE HAS A RIGHT TO A TRIAL BY JURY ON THE ISSUE.
On January 25, 2001, appellants entered into a purchase agreement with appellee for the construction of a home. At the time the purchase agreement was executed, appellee provided appellants with a copy of a limited warranty, in which the parties agreed to arbitrate all disputes. Appellants filed the instant action on February 20, 2001. On March 21, appellee filed a motion to dismiss, or in the alternative to stay the proceedings pending arbitration. The court determined that the motion to dismiss was filed on matters outside of the pleadings, and converted the motion to one for summary judgment. Appellee filed a supplemental brief, along with affidavits pursuant to Civ. R. 56, supporting its motion for summary judgment. Appellants failed to file a responsive pleading to the summary judgment motion. The court granted the motion for summary judgment, finding that pursuant to the agreement of the parties, the dispute must be arbitrated. The court dismissed the complaint.
Public policy favors and encourages arbitration because it unburdens crowded dockets and is relatively fast and inexpensive. Schaefer v.Allstate Insurance Company (1992),
By enacting R.C.
Appellants have not demonstrated that enforcement of the arbitration clause violates public policy or their constitutional rights.
The first assignment of error is overruled.
Under Ohio law, a contract clause is unconscionable where there is the absence of meaningful choice on the part of one of the parties to a contract, combined with contract terms that are unreasonably favorable to the other party. E.g., Collins v. Click Camera and Video, Inc. (1993),
In support of its motion for summary judgment, appellee provided a copy of the purchase agreement, the limited warranty, and the affidavit of Kitten Bensen. According to this affidavit, at the time the purchase agreement was executed, appellants were provided with a copy of the limited warranty. As noted earlier in this opinion, appellants submitted no evidentiary material in response to the motion for summary judgment. Therefore, there is nothing in the record to demonstrate the second element of the unconscionability test, that there were individualized circumstances surrounding the parties to this particular contract, such that no voluntary meeting of the minds was possible. Appellants submitted no evidence that they did not have a meaningful choice on the issue of arbitration. Having failed to produce evidence of disputed facts on one prong of the unconscionability test, the court did not err in entering summary judgment on this issue.
The second assignment of error is overruled.
The third assignment of error is overruled.
The judgment of the Stark County Common Pleas Court is affirmed.
By Gwin, P.J., Wise, J., and Boggins, J., concur
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