2011 Ohio 5249
Ohio Ct. App.2011Background
- Pappas purchased the Richmond Towers building from Ippolito in 2002; the purchase included an arbitration clause.
- In 2003, Pappas sued Ippolito regarding the sale; after discovery, the court denied arbitration and then granted summary judgment to Ippolito.
- Ippolito later demanded attorney’s fees and costs under the contract and filed an AAA arbitration demand.
- In 2009, Pappas sought to enjoin the AAA proceeding in common pleas court; Ippolito moved to dismiss for lack of subject-matter jurisdiction under Civ.R. 12(B)(1).
- The trial court granted the Civ.R. 12(B)(1) motion; on appeal, the court reversed and held the trial court had jurisdiction despite arbitration concerns.
- The appellate court later concluded that the dispute may be arbitrable, but does not divest the trial court of jurisdiction and remanded for proceedings consistent with the opinion.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the trial court lacked jurisdiction because arbitration was invoked. | Pappas argues waiver of arbitration or lack of jurisdiction. | Ippolito argues the arbitration clause and AAA rules delegating arbitrability to the arbitrator. | Trial court had jurisdiction; arbitration did not divest jurisdiction. |
Key Cases Cited
- Taylor Winfield Corp. v. Winner Steel, Inc., 2006-Ohio-4608 (Mahoning App. 2006) (arbitration issues do not divest trial court of jurisdiction; stay pending arbitration allowed)
- Belmont Cty. Sheriff v. Fraternal Order of Police, Ohio Labor Council, Inc., 104 Ohio St.3d 568 (2004) (arbitrability decision lies with court unless contract clearly provides otherwise; contract governs arbitrability)
- Union Twp., Clermont Cty. v. Union Twp. Professional Firefighters’ Local 3412, 142 Ohio App.3d 542 (2001) (arbitrability determined by contract; court can decide arbitrability absent clear delegation)