Chrysler Fin. Servs. v. Henderson
2011 Ohio 6813
| Ohio Ct. App. | 2011Background
- Appellee Chrysler Financial Services filed suit in Athens County Common Pleas for funds under a 2007 retail installment contract.
- Contract attached to complaint includes a conspicuous arbitration disclosure stating arbitration may be chosen and class-action waivers apply.
- Defendants Henderson answered, noting the arbitration clause existed but claiming they needed a legible copy to read and preserving their right to arbitrate; they also asserted improper venue.
- In 2010–2011, the trial court held discovery would proceed with a dispositive relief deadline; appellee moved for summary judgment in January 2011.
- Defendants filed a motion to compel arbitration, stay, or dismiss; appellee argued waiver because arbitration right was not timely asserted.
- The court granted summary judgment for appellee; defendants appeal asserting error on arbitration, waiver, and venue transfer.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the court erred by not holding a hearing on arbitration before ruling | Henderson waived right to arbitration by delay and discovery participation. | Arbitration right required a hearing under R.C. 2711.03 and the motion warranted a hearing. | No error; hearing not required absent request; court heard the issues via briefing. |
| Whether denial of arbitration was an abuse of discretion due to waiver | Waiver occurred by active litigation and discovery before arbitration request. | Arbitration should be pursued promptly; delay prejudices appellee. | No abuse; court properly found waiver or substantial likelihood of waiver due to conduct. |
| Whether the case should have been transferred for improper venue | Venue defenses could be raised and transferred; Civ.R. 12(D) procedures were not properly invoked. | Raised improper venue in answer; failed to move for transfer under Civ.R. 12(D). | Waived; no sua sponte transfer required; venue affirmed. |
Key Cases Cited
- Kastelnik v. Helper, 96 Ohio St.3d 1 (2002) (presumed denial when no explicit ruling on motion to compel arbitration)
- Ohio Univ. Bd. of Trustees v. Smith, 132 Ohio App.3d 211 (1999) (hearing can be non-oral; briefing suffices to hear issue)
- Panzica Constr. Co. v. Zaremba, Inc., 2011-Ohio-620 (Ohio App. 8th Dist. 2011) (court may hear arbitration issue on briefing record)
- Kellogg v. Griffiths Health Care Group, 2011-Ohio-1733 (Mar. 2011) (waiver shown by active litigation and awareness of arbitration right)
- Harsco Corp. v. Crane Carrier Co., 122 Ohio App.3d 406 (1997) (abuse of discretion for denying stay where waiver not shown)
- Montecalvo Electric, Inc. v. Cluster Homes, Inc., 2003-Ohio-355 (Summit App. 2003) (waiver when defendant waited to pursue arbitration after discovery)
- Smith v. Kreepy Krauly USA, Scioto App. No. 00CA2709 (2001) (denial of stay proper where defendant acts inconsistently with arbitration right)
- Featherstone v. Merrill Lynch, 2004-Ohio-5953 (Ohio App. 4th Dist.) (waiver considerations include delay and prejudice)