Natale v. Frantz Ward, L.L.P.
2018 Ohio 1412
Oh. Ct. App. 8th Dist. Cuyahog...2018Background
- Natale was a founding partner of Frantz Ward L.L.P.; the partnership agreement contains a broad arbitration clause covering "disputes arising under or relating in any fashion to this Agreement."
- Natale developed ALS in 2016 and sought disability retirement benefits under the partnership agreement; his requests were denied.
- On May 6, 2017, Natale filed an arbitration demand with the AAA seeking disability retirement benefits under Sections 5F and 10 of the partnership agreement.
- Simultaneously, Natale sued in common pleas court asserting a single tort claim: intentional infliction of emotional distress, expressly alleging the claim did not "arise under or relate in any fashion to" the partnership agreement.
- Defendants moved to stay proceedings and compel arbitration; the trial court granted the motion and this appeal followed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Natale's IIED claim is subject to the partnership agreement's arbitration clause | Natale: claim is tort-based, independent of the partnership agreement and can be resolved without reference to it | Defendants: complaint repeatedly references disability retirement, transition plans, and partnership provisions so resolution requires reference to the agreement | Court: Claim "touches matters covered by" the agreement and must be arbitrated; trial court's stay and referral affirmed |
| Whether proceedings against non-signatory employees (Arison, Abraham) must be stayed when arbitrable claims exist | Natale: Arison and Abraham are not parties to the partnership agreement, so their claims are not arbitrable | Defendants: Entire action should be stayed because arbitrable claims predominate and statutory rule requires staying proceedings pending arbitration | Court: Even if some claims/defendants are non-signatories, the entire proceeding must be stayed until arbitration concludes |
Key Cases Cited
- Taylor Bldg. Corp. of Am. v. Benfield, 117 Ohio St.3d 352 (2008) (Ohio recognizes a presumption favoring arbitration when disputes fall within an arbitration agreement)
- Academy of Med. v. Aetna Health, Inc., 108 Ohio St.3d 185 (2006) (doubts regarding arbitrability are resolved in favor of arbitration)
- Council of Smaller Ents. v. Gates, McDonald & Co., 80 Ohio St.3d 661 (1998) (parties cannot be compelled to arbitrate disputes they did not agree to submit)
- Alexander v. Wells Fargo Fin. Ohio 1, Inc., 122 Ohio St.3d 341 (2009) (tort claims can be arbitrable if the allegations "touch matters covered by" the contract)