2011 Ohio 5505
Ohio Ct. App.2011Background
- Pinnacle Condominiums Unit Owners’ Association is a nonprofit for 80 condo units at the Pinnacle Property atop a parking garage in Cleveland.
- The Developer, Pinnacle 701, LLC, owned the land and developed the project; the Garage Owner, 701 Lakeside, LLC, operates the two lower levels of the parking garage beneath the condominiums.
- The REA (2004) granted reciprocal easements and operating rules for use of gates, ramps, elevators, and related facilities, outlining obligations for easements and related expenses.
- In 2005, the Amended REA replaced Section 13.1 to require binding arbitration of disputes related to the REA if not resolved by all parties’ agreement, clarifying mandatory arbitration.
- Also in 2005, the Developer granted easements to the Cloak Factory Condominium and its residents for recreational facilities on the Pinnacle Property.
- On September 2, 2009, the Association filed suit seeking relief on various REA-related easement disputes; the case progressed through briefing, discovery, and mediation before arbitrational issues were resolved.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether appellees waived the right to arbitration. | Pinnacle argues waiver due to appellees’ litigation participation. | Appellees contend arbitration was not clearly mandatory and they could litigate. | No abuse of discretion; arbitration mandatory under Amended REA and waiver not shown. |
Key Cases Cited
- Rock v. Merrill Lynch, Pierce, Fenner & Smith, Inc., 79 Ohio App.3d 126 (1992) (waiver of arbitration rights requires knowing and inconsistent conduct)
- Griffith v. Linton, 130 Ohio App.3d 746 (1998) (strong policy favoring arbitration; waiver not lightly inferred)
- Checksmart v. Morgan, 8th Dist. No. 80856 (2003) (factors for evaluating waiver include timing and litigation conduct)
- U.S. Bank, N.A. v. Wilkens, 8th Dist. No. 93088 (2010) (totality of circumstances governs waiver analysis)
- Wishnosky v. Star-Lite Bldg. & Dev. Co., 8th Dist. No. 77245 (2000) (relevant precedent on arbitration waiver standards)
- Blakemore v. Blakemore, 5 Ohio St.3d 217 (1983) (abuse of discretion standard for appellate review)