Rimmer v. Citifinancial, Inc.
6 N.E.3d 621
Ohio Ct. App.2013Background
- Rimmer sued Citi for failing to record mortgage satisfactions within 90 days, seeking statutory penalties and costs.
- First appeal reversed trial court on class certification; this court held class certification was proper.
- Ohio Supreme Court issued Alexander II holding arbitration can apply to mortgage satisfaction claims, remanding for reconsideration.
- On remand, trial court excluded arbitration-clause holders from the class; Rimmer challenged, arguing inclusion.
- Trial court certified a class excluding arbitration-clause borrowers, and defined the class with language referencing Citi predecessors and affiliates.
- Rimmer argued the class definition and notice issues; Citi cross-appealed about open-ended class and notice burdens.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Arbitration exclusion from class | Rimmer contends arbitration clauses should not exclude class members. | Citi relies on Alexander II to exclude those with arbitration agreements. | Arbitration-clause members properly excluded. |
| Application of Alexander II on remand | Alexander II does not bind the class members as to applicability of arbitration. | Alexander II governs whether arbitration applies to mortgage-satisfaction claims. | Alexander II governs outcome; court correctly excluded arbitration-clause members. |
| Class definition accuracy (predecessors/affiliates) | Definition should include Citi predecessors/related entities. | Definition as ordered excludes certain entities due to wording. | Trial court must revise to include predecessors/merged entities. |
| Open-ended class and identifiability | Open-ended class is identifiable with reasonable methods. | Open-ended class risks indefiniteness. | Open-ended class acceptable; end date to March 8, 2013 to be incorporated. |
| Notice responsibility for class members | Rimmer should bear notice responsibilities as class representative. | Citi should bear noticing costs and identify members. | Trial court within discretion to require Citi to provide notice; Citi bears costs. |
Key Cases Cited
- Alexander v. Wells Fargo Fin. Ohio 1, Inc., 122 Ohio St.3d 341 (2009-Ohio-2962) (arbitration agreements may apply to mortgage satisfaction claims)
- Consolidated Mortgage Satisfaction Cases, 97 Ohio St.3d 465 (2002-Ohio-6720) (mortgage satisfaction claims may be class actions)
- Rosette v. Countrywide Home Loans, Inc., 105 Ohio St.3d 296 (2005-Ohio-1736) (class certification in mortgage satisfaction cases)
- Planned Parenthood Assn. of Cincinnati, Inc. v. Project Jericho, 52 Ohio St.3d 56 (1990-Ohio-157) (Civ.R. 23 class definability and certification standards)