Jatsek Constr., Co., Inc. v. Burton Scot Contrs., L.L.C.
2012 Ohio 3966
Ohio Ct. App.2012Background
- Jatsek sued Burton Scot for unpaid work on the Greenway bike trail project in Warren.
- Burton Scot was the general contractor and proposed a subcontract; Jatsek submitted a bid.
- Burton Scot later proposed a modified subcontract; no contract was executed with Burton Scot’s written sign-off.
- Jatsek performed work on the Greenway project and alleged it would be paid per original bid.
- Burton Scot moved to stay proceedings pending arbitration, asserting the subcontract required arbitration under Paragraph 31.
- Trial court found no contract existed for the Greenway project; motion to stay denied; court reversed and remanded on appeal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether an arbitration agreement applies to the Greenway project | Jatsek argues no contract existed to arbitrate; if contract existed, arbitration should apply. | Burton Scot contends a binding arbitration clause governs disputes related to the Agreement. | Contract existed or was implied; arbitration applicable. |
| Standard of review for denial of motion to stay arbitration | Review should be de novo because contract existence is at issue. | Review should be de novo or abuse of discretion depending on question; here de novo. | De novo review applied to contract existence. |
| Whether an implied contract formed by conduct allowed arbitration | Jatsek performed work and acted as if contract existed; implied contract formed. | No contract formed due to Burton Scot’s lack of written assent to modifications. | Implied contract formed; arbitration applicable. |
Key Cases Cited
- Williams v. Aetna Fin. Co., 83 Ohio St.3d 464 (Ohio 1998) (presumption in favor of arbitration; judicial economy concerns)
- Melia v. OfficeMax N. Am. Inc., 8th Dist. No. 87249 (2006) (arb. arbitrability; doubt resolved in favor of arbitration)
- Dynamark Sec. Ctrs., Inc. v. Charles, No. 21254 (9th Dist. 2003) (waiver considerations affect arbitration rights)
