2012 Ohio 4116
Ohio Ct. App.2012Background
- Centofanti hired Wayne Homes to build a house; construction allegedly defective and financing impeded by code violations.
- Plaintiff alleged breach of contract, implied warranty of habitability, negligent construction, and CSPA violations seeking contract release and damages.
- Wayne Homes proceeded with private arbitration after suit was filed, despite lack of court order and without Appellee’s participation.
- Appellee opposed arbitration and sought court appointment of arbitrator; no court-ordered stay or arbitration order existed.
- Arbitration occurred unilaterally, an award issued, and Appellee moved to stay and vacate; trial court ultimately vacated the award.
- This appeal challenges the trial court’s vacation of the arbitration award and the absence of a proper court-ordered arbitration process.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the trial court properly vacated the arbitration award. | Centofanti contends the award was invalid due to lack of party participation and no court order. | Wayne Homes argues the award was valid arbitration under contract. | Yes; court affirmed vacatur of the award. |
| Whether there was a valid arbitration agreement enforceable without a court order. | Centofanti maintained no enforceable arbitration existed without a court order or voluntary participation. | Wayne Homes maintains arbitration could proceed under the contract provisions. | No valid arbitration occurred; arbitrator lacked authority. |
| Who bears the burden to obtain court enforcement of arbitration before proceeding? | Centofanti did not participate; burden shifts to movant to obtain a court order. | Wayne Homes contends the party seeking arbitration bears burden. | Burden on movant to obtain court order; absence invalidates arbitration. |
Key Cases Cited
- Council of Smaller Ents. v. Gates, McDonald & Co., 80 Ohio St.3d 661 (1998) (arbitration requires court enforcement under contract law)
- AT&T Technologies, Inc. v. Communications Workers of America, 475 U.S. 643 (1986) (arbitrator authority derives from agreement; court enforcement if needed)
- Bradley Dev. Co., Inc. v. Northern Ohio Sewer Contracting, Inc., 2003-Ohio-6123 (9th Dist.) (preliminary issues before staying to arbitration: existence, enforceability, and scope)
- Maestle v. Best Buy Co., 100 Ohio St.3d 330 (2003) (determine enforceability; proceed under both R.C. 2711.02 and 2711.03)
- E.S. Gallon Co., L.P.A. v. Deutsch, 142 Ohio App.3d 137 (2001) (court may vacate for improper arbitrator conduct or excess of powers)
- Queen City Lodge No. 69, Fraternal Order of Police, Cincinnati v. Cincinnati, 63 Ohio St.3d 403 (1992) (limits review of arbitration awards when arbitrator acts within powers)
- Benjamin v. Pipoly, 155 Ohio App.3d 171 (2003) (arbitrability is a question of contract law; court decides enforceability)