Brooks v. Doverwood Estates, Inc., 90397 (7-31-2008)
Brooks v. Doverwood Estates, Inc., 90397 (7-31-2008)
Opinion of the Court
{¶ 2} Brooks initiated this action on April 2, 2007, asserting claims against Doverwood Estates for violating the consumer sales practices act, breach of contract, and breach of implied warranty. The claims arose from a contract entered into between Brooks and Doverwood Estates for the construction of a home in Westlake, Ohio. The contract between the parties contained the following arbitration clause:
{¶ 3} "Any controversy or claim arising out of or relating to this Agreement, shall be settled by arbitration arranged by the Seller, which arbitration shall be conducted in accordance with the Expedited Dispute Settlement Rules of the American Arbitration Association. The arbitration decision shall be binding upon both Seller and Buyer, and any award or decision rendered by the arbitrator(s) may be entered as a judgment and enforced in any Court having jurisdiction thereof."
{¶ 4} Doverwood Estates was served with Brooks' complaint on April 12. On May 28, 2007, the court issued a notice that a case management conference was scheduled for June 26, and directed the parties to serve requests for production of documents and interrogatories prior to the conference. *Page 4
{¶ 5} The case management conference was held on June 26, and the court ordered a discovery cut-off date of September 26. On July 6, Doverwood Estates filed a motion to dismiss, or alternatively, to stay. Brooks responded to Doverwood Estates' motion to dismiss on July 23, and on the same date also filed a motion for extension of time to conduct discovery on the enforceability of the arbitration clause. Doverwood Estates opposed Brooks' motion on July 27. In two judgments dated August 9, the trial court denied Brooks' motion for an extension of time, denied Doverwood Estates' motion to dismiss, and granted Doverwood Estates' motion to stay.
{¶ 6} In her sole assignment of error, Brooks contends that the trial court erred in denying her motion for an extension of time to conduct discovery and in granting Doverwood Estates' motion to stay pending arbitration.
{¶ 7} We review the trial court's ruling on a motion to stay pending arbitration under an abuse of discretion standard. Stasser v. FortneyWeygandt, Inc. (Dec. 20, 2001), Cuyahoga App. No. 79621, at 4;Harsco Corp. v. Crane Carrier Co. (1997),
{¶ 8} It is well recognized that public policy favors and encourages arbitration to avoid needless and expensive litigation. Gerig v.Kahn,
{¶ 9} The Ohio Arbitration Act is codified in Chapter
{¶ 10} "If any action is brought upon any issue referable to arbitration under an agreement in writing for arbitration, the court in which the action is pending, upon being satisfied that the issue involved in the action is referable to arbitration under an agreement in writing for arbitration, shall on application of one of the parties stay the trial of the action until the arbitration of the issue has been had in accordance with the agreement, provided the applicant for the stay is not in default in proceeding with arbitration." R.C.
{¶ 11} Furthermore, R.C.
{¶ 12} "A provision in any written contract * * * to settle by arbitration a controversy that subsequently arises out of the contract, * * * or any agreement in writing between two or more persons to submit to arbitration any controversy existing between them at the time of the agreement to submit, or arising after the agreement to submit, from a relationship then *Page 6 existing between them or that they simultaneously create, shall be valid, irrevocable, and enforceable, except upon grounds that exist at law or in equity for the revocation of any contract."
{¶ 13} Thus, an arbitration clause is valid and enforceable, unless it is found to be unconscionable. R.C.
{¶ 14} In her motion for an extension of time to conduct discovery, Brooks contended that the language "arranged by Seller" in the arbitration clause is "unclear and, given its lack of clarity, likely unenforceable." Brooks cited the following as examples of the clause's alleged lack of clarity: "[i]s seller going to arrange the arbitration by paying the filing fee and other costs associated with arbitration, or is seller going to arrange the arbitration by making the first phone call." At oral argument, Brooks' counsel confirmed that her concern relative to the arbitration clause was twofold: 1) who would arrange it and 2) who would pay for it. In response, at oral argument, counsel for Doverwood Estates indicated that his client would both arrange the arbitration and pay for it. In light of that exchange, it appears that there is no further concern.
{¶ 15} Upon review, we find that the trial court did not abuse its discretion by granting Doverwood Estates' motion to stay, and denying Brooks' motion for an extension of time to conduct discovery. The cases cited by Brooks are not helpful to her claim.
{¶ 16} In Goodwin v. Ganley, Inc., Cuyahoga App. No. 89732,
{¶ 17} Here, Brooks not only had time to object to Doverwood Estates' motion (which she did), but also had time to obtain clarification regarding the arbitration clause. Her complaint was filed in April 2007, Doverwood Estates filed its motion for stay in July 2007, and the motion was ruled on in August 2007. In the time between the filing of her complaint and the August 9 judgments Brooks now challenges, she had an adequate opportunity to clarify her concerns about the arbitration clause. In light of the above, Goodwin is distinguishable from this case.
{¶ 18} In Harrison v. Toyota Motor Sales, U.S.A., Inc., Summit App. No. 20815, 2002-Ohio-1642, the Ninth District reversed and remanded the trial court judgment granting Toyota's motion to stay proceedings pending arbitration. The Ninth District noted that: "the arbitration clause appears to be pre-printed on the contract and does not contain specific details concerning the arbitration process. Specifically, the clause provides `See General Manager for information regarding arbitration process.'" Id. at ¶ 15. But the vagueness found in theHarrison arbitration clause is not present here and, therefore,Harrison is distinguishable. *Page 8
{¶ 19} Similarly, Sikes v. Ganley Pontiac Honda, Inc. (Sept. 13, 2001), Cuyahoga App. No. 79015 ("Sikes I"), and Sikes v. Ganley PontiacHonda, Inc., Cuyahoga App. No. 82889,
{¶ 20} On remand, the parties submitted supplemental briefs regarding the enforceability of the arbitration clause, and the trial court ruled that the clause was unconscionable and, thus, unenforceable. SikesII, at ¶ 6. This court, however, reversed and remanded, finding that "it is incumbent upon the complaining party to put forth evidence demonstrating that the clause is adhesive and, moreover, that as a result of the adhesive nature, the clause is unconscionable." Id. at ¶ 15. Sikes failed to do that. Id. at ¶¶ 16-24.
{¶ 21} Here, Brooks' sole argument for unenforceability of the arbitration clause centers on the language "arranged by Seller." We are not persuaded the language is unclear. Moreover, as previously mentioned, Brooks' concerns about the arbitration clause were answered by Doverwood Estates' counsel at oral argument.
{¶ 22} Finally, Brooks cites the case of Berger v. Cantor FitzgeraldSecurities (1996),
{¶ 23} "Berger asserts that he was told only to fill out an `application to become a registered government securities broker,' that he `was given no more than five minutes to do so,' that Cantor `never mentioned the word arbitration,' and that an unnamed woman in Cantor's Compliance Department simply instructed him `to put [his] social security number at the top of each page, * * * to fill in the necessary information and sign at the bottom of the last page.' Plaintiff also asserts that Cantor never provided him with a copy of the NASD Manual sections necessary for Plaintiff to understand the content and scope of the arbitration clause. Plaintiff thus concludes that any agreement to arbitrate was the involuntary result of misrepresentation, high pressure tactics, and unfair dealing." Id. at 965 (internal cites omitted).
{¶ 24} Here, Brooks did not provide an affidavit and, certainly does not claim that she was unaware that, by signing the contract, she was agreeing to arbitration. Rather, as already stated, Brooks claims that the language "arranged by Seller" is unclear. As already discussed, however, we are not persuaded, and Brooks' concerns were addressed by *Page 10 Doverwood Estates' counsel at oral argument. Accordingly, the sole assignment of error is overruled.
Judgment affirmed.
It is ordered that appellees recover from appellant costs herein taxed.
The court finds there were reasonable grounds for this appeal.
It is ordered that a special mandate be sent to said court to carry this judgment into execution.
A certified copy of this entry shall constitute the mandate pursuant to Rule 27 of the Rules of Appellate Procedure.
PATRICIA A. BLACKMON, J., CONCURS; ANN DYKE, J., CONCURS IN JUDGMENT ONLY *Page 1
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