Brownlee v. Cleveland Clinic Found.
2012 Ohio 2212
Ohio Ct. App.2012Background
- Brownlee filed an amended complaint against Cleveland Clinic Foundation (CCF) and others arising from his former employment and a Settlement Agreement executed August 2010 that includes an arbitration clause.
- CCF moved to stay proceedings pending arbitration under R.C. 2711.02; Brownlee opposed, claiming the arbitration clause was unenforceable due to fraud and unconscionability.
- The trial court granted the stay; Brownlee appealed alleging lack of an evidentiary hearing and lack of discovery relating to enforceability.
- The dispute centers on whether the arbitration provision is enforceable and whether a stay is mandatory under statute when questions exist about arbitrability.
- The court applies de novo review to the enforceability of the arbitration provision and notes stay is mandatory under R.C. 2711.02; a hearing is not required by the statute.
- The court ultimately affirms the stay and overrules Brownlee’s challenges, concluding discovery was not required and that challenges to the contract as a whole do not defeat the arbitration clause.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether an evidentiary hearing was required before staying. | Brownlee argues an evidentiary hearing was needed. | CCF maintains no hearing is required under R.C. 2711.02. | No reversible error; no hearing required under 2711.02. |
| Whether Brownlee should have been allowed discovery on enforceability of the arbitration clause. | Brownlee contends discovery was necessary to challenge enforceability. | Discovery was unnecessary as the challenge was to the contract, not the clause itself. | Discovery not required; stay affirmed. |
Key Cases Cited
- Maestle v. Best Buy Co., 100 Ohio St.3d 330 (2003-Ohio-6465) (arbitration-stay considerations; separability of clause from contract)
- ABM Farms, Inc. v. Woods, 81 Ohio St.3d 498 (1998) (arbitration clause separable; contract challenges do not defeat stay)
- McCaskey v. Sanford-Brown College, 8th Dist. No. 97261 (2012-Ohio-1543) (standard for reviewing arbitrability issues; stays are de novo)
- Garber v. Buckeye Chrysler-Jeep Dodge of Shelby, 2008-Ohio-3533 (5th Dist.) (arbitration clause validity separate from contract)
- Mak v. Silberman, 2011-Ohio-854 (8th Dist.) (fraud in contract does not defeat arbitration provision)
- Short v. Resources Title Agency, 2011-Ohio-1577 (8th Dist.) (challenge to contract does not defeat arbitration clause)
- Coble v. Toyota of Bedford, 2004-Ohio-238 (8th Dist.) (arbitration-stay and enforceability considerations)