Oney v. Dixie Imports, Inc., 2018 Ohio 913

Oney purchased a used 2008 Buick Enclave from Dixie Imports and signed a Retail Purchase Agreement, a separate Agreement to Arbitrate, a Buyers Guide, and a Vehicle Protection Plan. The Retail Purchase Agreement contained an unmarked box referencing an attached arbitration agreement.
Oney alleged numerous post-sale vehicle defects and that the extended service plan did not cover the problems; she sued Dixie under the Ohio Consumer Sales Practices Act, Motor Vehicle Sales and Repair Rules, and for fraud and deceit.
Dixie was served in October 2016, filed several motions (including an offer to cure and motions for a more definite statement), participated in pretrial conferences, and set a trial date before moving to stay for arbitration in February 2017—about four months after the complaint was filed.
Dixie attached the Agreement to Arbitrate to its stay motion but did not provide an affidavit verifying the agreement until March 29, 2017.
The trial court denied Dixie’s motion to stay, finding (1) the Retail Purchase Agreement’s arbitration box was unmarked so it did not incorporate arbitration, and (2) Dixie waived arbitration by participating in litigation and delaying its demand.
On appeal, the Twelfth District affirmed, focusing on the trial court’s waiver analysis and concluding the trial court did not abuse its discretion in finding waiver.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether the arbitration agreement must be enforced	Oney argued arbitration was not incorporated into the Retail Purchase Agreement and Dixie waived arbitration by litigating	Dixie argued the Agreement to Arbitrate was a valid, incorporated contract and should compel arbitration	Court held arbitration was waived by Dixie due to delay and litigation participation; affirmed denial of stay
Whether Dixie waived the right to arbitrate	Oney argued Dixie knew of the arbitration right but acted inconsistently by litigating for months before seeking a stay	Dixie argued its delayed request did not constitute waiver and arbitration should be enforced	Court held waiver proven under totality of circumstances (four-month delay, motions, pretrial activity, late verification)

Harsco Corp. v. Crane Carrier Co., 122 Ohio App.3d 406 (Ohio Ct. App. 1997) (failure to move for a stay coupled with responsive pleadings can constitute waiver of arbitration)