Biondi v. Oregon Homes, L.L.C.
2012 Ohio 1714
Ohio Ct. App.2012Background
- Appellees (John X. Biondi, Thomas F. Bear, Sandra V. Hazra, and Lawrence M. Saltis) are 5% members of Oregon Homes, LLC and signed an July 7, 2006 operating agreement.
- Oregon Homes executed promissory notes in favor of First Merit Bank, N.A.; Appellees provided guaranties for payment.
- When Oregon Homes failed to pay, Appellees paid sums due under their guaranties.
- On November 12, 2010, Appellees sued under R.C. 1303.59 seeking reimbursement from Oregon Homes.
- Oregon Homes moved to compel arbitration on January 10, 2011; the trial court denied the motion on March 3, 2011.
- The Court of Appeals reversed, holding the trial court failed to conduct the required hearing under R.C. 2711.03 and remanded for a proper hearing.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the trial court properly denied arbitration under R.C. 2711.03 | Oregon Homes contends claims fall within the arbitration clause | Appellees argue the court should deny arbitration based on record | Remanded for a hearing; court erred by not conducting a R.C. 2711.03 hearing |
Key Cases Cited
- Maestle v. Best Buy Co., 100 Ohio St.3d 330 (2003) (arbitration enforcement via statute requires a hearing if issue is joined)
- Brumm v. McDonald & Co. Securities, Inc., 78 Ohio App.3d 96 (1992) (arbitration enforcement context; cited regarding hearing requirement)
- Chase Home Fin. v. McDowell, 2010-Ohio-633 (9th Dist.) (requires a hearing on a motion to compel arbitration)
- Boggs Custom Homes, Inc. v. Rehor, 2008-Ohio-779 (9th Dist.) (discusses arbitration motion procedures)
- Krakora v. Superior Energy Sys., 2009-Ohio-401 (9th Dist.) (reversal for failure to hold hearing on arbitration motion)
- Blubaugh v. Fred Martin Motors, Inc., 2005-Ohio-1129 (9th Dist.) (discusses hearing requirement on arbitration motion)