Thomas v. Jackson Hewitt, Inc.
950 N.E.2d 578
Ohio Ct. App.2011Background
- In Sept. 2009, Nancee Thomas filed a putative class action against Jackson Hewitt for alleged CSOA violations in RAL practice.
- The complaint alleged JH failed to register as a CSO, obtain a surety bond, provide a 3-day rescission, and furnish required disclosures.
- The action sought damages for Ohio residents who used JH’s RAL services.
- JH moved to dismiss under Civ.R. 12(B)(6) and 12(B)(7), arguing Thomases weren’t buyers, JH not a CSO, no injury, and improper class joinder.
- Thomas later amended the complaint to add Paul Thomas; the motion to dismiss applied to the amended complaint.
- The trial court dismissed, ruling JH was not a CSO and that the Thomases failed to allege damages; Thomases appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Thomases alleged cognizable CSOA damages | Thomas alleged injury from CSOA noncompliance and fees paid | Thomas failed to allege actual injury; CSOA damages not proven | Dismissal affirmed; no damages pled |
| Whether the CSOA applies to Thomases and Jackson Hewitt | CSOA could apply; Thomases were damaged by CSO violations | Applicability unclear; need injury allegations | Court assumed CSOA could apply but found damages lacking |
| Whether Thomases are “buyers” under R.C. 4712.01(A) | Thomases used RAL services and paid fees | Inquiry unnecessary due to lack of damages | Not reached; damages fatal to complaint |
| Whether Jackson Hewitt is a CSO under R.C. 4712.01(C) | JH’s status as CSO is alleged | JH is not a CSO | Not reached; damages fatal to complaint |
Key Cases Cited
- Byrd v. Faber, 57 Ohio St.3d 56 (Ohio 1991) (motion to dismiss standards; presumption of truth for allegations)
- O’Brien v. Univ. Community Tenants Union, Inc., 42 Ohio St.2d 242 (Ohio 1975) (scope of review for Civ.R. 12(B)(6) dismissals)
- McGlone v. Grimshaw, 86 Ohio App.3d 279 (Ohio App.3d 1993) (review of complaint and factual allegations; ruling on injury)
- State ex rel. Hickman v. Capots, 45 Ohio St.3d 324 (Ohio 1989) (presumed truth not given to legal conclusions)
- Harper v. Jackson Hewitt, 227 W.Va. 142, 706 S.E.2d 63 (West Virginia 2010) (CSO status and buyer injury discussed in WV)