Nco Portfolio Mgt., Inc. v. Lewis, 06ca009001 (8-6-2007)
Nco Portfolio Mgt., Inc. v. Lewis, 06ca009001 (8-6-2007)
Opinion of the Court
{¶ 1} Appellant, NCO Portfolio Management, Inc., appeals from the decision of the Lorain County Court of Common Pleas, dismissing with prejudice its application to confirm a binding arbitration award. We reverse and remand for proceedings consistent with this opinion.
Accordingly, the trial court dismissed the case with prejudice as to Appellee. Appellant has timely appealed from this order, asserting one assignment of error for our review.
"THE TRIAL COURT PREJUDICIALLY ERRED AND ABUSED ITS DISCRETION DISMISSING APPELLANT'S APPLICATION TO CONFIRM ARBITRATION AWARD WITH PREJUDICE[.]"
{¶ 3} Appellant contends that the trial court prejudicially erred and abused its discretion dismissing its application to confirm the arbitration award with prejudice.
{¶ 4} Appellant filed a motion to confirm and enforce the arbitration award under R.C.
"At any time within one year after an award in an arbitration proceeding is made, any party to the arbitration may apply to the court of common pleas for an order confirming the award. Thereupon the court shall grant such an order and enter judgment thereon, unless the award is vacated, modified, or corrected as prescribed in sections
2711.10 and2711.11 of the Revised Code. Notice in writing of the application shall be served upon the adverse party or his attorney five days before the hearing thereof."
{¶ 5} At the outset, we note that Appellant filed its motion to confirm the arbitration award more than a year after the award was made. While the statute does not have an express provision for a party who moves to confirm an arbitration award beyond the one-year period provided by the statute, the Ohio *Page 4
Supreme Court found that R.C.
"As indicated in the editorial comment following the section in Page's Ohio Revised Code Annotated, the purpose of this section of the statute is to enable parties to an arbitration to obtain satisfaction of the award. It is further stated that `[t]he party desiring legally to enforce an award makes a motion to confirm. This motion must be granted by the court, unless cause is shown for its modification or vacation; and the motion to confirm must be made within one year after the award is rendered. After that time the remedy would be by a suit on the award.'" Warren Edn. Assn v. Warren City Bd. of Edn. (1985),
18 Ohio St.3d 170 ,172-173 , quoting comment to R.C.2711.09 .
{¶ 6} Further, the use of the term "may" in the statute, "fails to equate to the interpretation a party must apply to confirm its award within one year or forfeit that right[.]" Russo v. Chittick (1988),
{¶ 7} Appellant argues that the trial court erred and abused its discretion when it dismissed with prejudice its application to confirm the arbitration award. We review a trial court's order confirming or rejecting an arbitration award for *Page 5
errors that occurred as a matter of law. NCO Portfolio Mgt, Inc. v.McAfee,
{¶ 8} An application for the confirmation of an arbitration award is governed by R.C.
{¶ 9} "[W]hen a motion is made pursuant to R.C.
{¶ 10} We have found that it was within the trial court's discretion to review Appellant's motion to confirm, despite the fact that it was filed more than a year after the award was granted. In the present case, Appellee did not move the trial court to vacate, modify or correct the arbitration award. At filing, Appellant attached the award and a photocopy of "[t]hat portion of the cardmember agreement governing terms and conditions constituting the arbitration agreement[.]" This agreement was unsigned and undated, but was supported by the affidavit of Appellant's attorney. His affidavit stated that the award and agreement were "true, authentic and accurate copies of the arbitration award between the parties, and the governing arbitration agreement between the parties, respectively." Further, the arbitration award states that the arbitrator found that the "[p]arties entered into an agreement providing that this matter shall be resolved through binding arbitration[.]" Finally, we note that the arbitration clause attached to the motion provided that the "applicability of this Arbitration and Litigation section or the validity of the entire Agreement or any prior Agreement shall be *Page 7
resolved by binding arbitration." As such, we find that the trial court erred in finding that Appellant failed to establish that there was an agreement between Appellant and Appellee to arbitrate the claim. "Because NCO provided the award and the arbitration agreement, as required by R.C.
Judgment reversed, and cause remanded.
The Court finds that there were reasonable grounds for this appeal.
We order that a special mandate issue out of this Court, directing the Court of Common Pleas, County of Lorain, State of Ohio, to carry this judgment into execution. A certified copy of this journal entry shall constitute the mandate, pursuant to App.R. 27.
Immediately upon the filing hereof, this document shall constitute the journal entry of judgment, and it shall be file stamped by the Clerk of the Court of *Page 8 Appeals at which time the period for review shall begin to run. App.R. 22(E). The Clerk of the Court of Appeals is instructed to mail a notice of entry of this judgment to the parties and to make a notation of the mailing in the docket, pursuant to App.R. 30. Costs taxed to Appellees.
CARLA MOORE FOR THE COURT
Concurring Opinion
{¶ 12} While I agree with the result reached by the majority, I write to clarify why the Court addresses the argument raised by appellee. In his appellate brief, appellee asserted that the trial court lacked subject matter jurisdiction to grant the motion to confirm because appellant filed its motion to confirm beyond the one-year period in R.C.
Reference
- Full Case Name
- Nco Portfolio Management Inc., Assignee of Mbna v. Janet Lewis
- Cited By
- 5 cases
- Status
- Published