Carapellotti v. Breisch & Crowley

119 N.E.3d 961, 2018 Ohio 3977
CourtCourt of Appeals of Ohio, Seventh District, Jefferson County
DecidedSeptember 19, 2018
DocketNo. 18 JE 0002
StatusPublished
Cited by4 cases

This text of 119 N.E.3d 961 (Carapellotti v. Breisch & Crowley) is published on Counsel Stack Legal Research, covering Court of Appeals of Ohio, Seventh District, Jefferson County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carapellotti v. Breisch & Crowley, 119 N.E.3d 961, 2018 Ohio 3977 (Ohio Super. Ct. 2018).

Opinion

Robb, P.J.

{¶ 1} Defendant-Appellant Heavy Timber Truss & Frame LLC appeals the decision of Jefferson County Common Pleas Court denying its motion to compel arbitration and stay the proceedings. The issue in this case is whether the trial court erred in denying the motion. More specifically we are asked to decide whether a signature on checks that include specific notations to the unsigned contract constitutes the signature for the unsigned contract thereby binding Plaintiff-Appellee Albert Carapellotti to the arbitration provision in the contract. For the reasons expressed below, while the notation on the three checks written by Appellee to Appellant is very specific, there is no reference to agreeing to arbitration and there is no evidence there was an agreement to arbitrate. Therefore, while the signature on the checks may have created some kind of contract between the parties, it did not include a contract to arbitrate. The trial court's decision is affirmed.

Statement of the Case

{¶ 2} Appellee was building a home in Wintersville, Jefferson County, Ohio. He engaged Appellant to design, in conjunction with a design team, and supply a timber frame for the house. A purchase agreement was presented to Appellee. Appellee did not sign the agreement. The Purchase Agreement was dated November 4, 2016, was nine pages long, was labeled "Purchase Agreement," indicated it was project # 1659, contained a progress and payment summary and schedule, and contained an arbitration clause.

{¶ 3} The fifth page of the Purchase Agreement sets forth a specific project progress and payment schedule. The owner, Appellee, is listed as being responsible for four items on this schedule. First, the owner was supposed to review, sign, and return the purchase agreement with payment for 10% of the contract price, which was listed as $18,896.50. Next, the owner was required to review, sign, and return the Authorization to Proceed for purchasing of timbers (ATP # 1) and submit payment, which was listed as 30% of the contract price. The schedule indicated the ATP # 1 would contain the exact amount due. Next, the owner was required to review, sign, and return Authorization to Proceed for fabricating timbers (ATP # 2) and submit payment, which was 30% of the contract price. The schedule indicated that ATP # 2 would indicate the exact amount due. Lastly, the owner was required to submit pre-delivery payment ATP # 3, which was the balance of the contract amount. The estimated contract price, $188,965.00, was listed on page three of the contract.

*963{¶ 4} A quote and deposit summary appears to have been given to Appellee around the same time the Purchase Agreement was given to him. This paper is not incorporated by reference into the Purchase Agreement and is not labeled as a part of the contract; it lists the estimated total cost as $188,965.00. The initial 10% payment was specified as $18,896.50. The 30% Timber Payment was listed as $56,689.50. The 30% Production Payment was listed as $56,689.50. The Delivery Payment was listed as $56,689.50.

{¶ 5} The Purchase Agreement contained General Conditions. Paragraph 10 stated the agreement was not binding unless it was signed by both parties. Defendant's Exhibit C. Paragraph 15 was the arbitration clause. It indicated all disputes arising out of the contract shall be decided in Kanawha County, West Virginia, in accordance with the construction industry arbitration rules of the American Arbitration Association, unless the parties mutually agree otherwise. Defendant's Exhibit C.

{¶ 6} On November 15, 2016 Appellee wrote two checks to Appellant. The first check was for $18,896.50. Defendant's Exhibit D. Written on the memo line of the check was "10% Down, $188,965.00 project cost, Purchase Agreement dated 11/4/16, Project # 1659, Timber Frame/SIP Roof & Tongue & Groove Ceiling." Defendant's Exhibit D. The second check was for $56,689.50. Defendant's Exhibit D. Written on the memo line of this check was "30% payment, $188,965.00 project cost, Purchase Agreement dated 11/4/16, Project # 1659, Timber Frame/SIP Roof & Tongue & Groove ceiling. Defendant's Exhibit D. On January 18, 2017 Appellee wrote another check to Appellant. This check was for $56,689.50. Defendant's Exhibit D. Written on the memo line of this check was "30% production payment, $188,965.00 project total cost, Purchase Agreement dated: 11/4/16, Project # 1659, Timber Frame/SIP Roof & Tongue& Groove ceilings." Defendant's Exhibit D.

{¶ 7} Prior to the January 18, 2017 payment, Appellee was notified there were changes to the design since the November 4, 2016 Purchase Agreement and there was an increase in the cost. Defendant's Exhibit E. The increase was $6,500 and there were negotiations regarding this increase. Defendant's Exhibit F. However, an additional agreement was not reached and Appellee decided not to use the timber frame from Appellant. Defendant's Exhibit G.

{¶ 8} Appellee then filed suit against Appellant and other defendants alleging general negligence, architectural professional negligence, engineering professional negligence, deceptive consumer sales practices, products liability, and implied warranties. 4/26/17 Complaint.

{¶ 9} Appellant filed an answer and counterclaim. 7/17/17 Answer and Counterclaim. Its seventeenth affirmative defense stated, "The claims set forth in Plaintiff's Complaint are subject to arbitration as set forth in the Motion to Compel Arbitration." 7/17/17 Answer and Counterclaim.

{¶ 10} The following day, Appellant filed a Motion to Compel Arbitration and for a Protective Order staying Proceedings. 7/18/17 Motion. Appellant asserted the claims were subject to arbitration per the contract.

{¶ 11} In response, Appellee filed two motions in opposition to the motion to compel. 7/19/17 Contra Motion and 7/20/17 Supplemental Contra Motion. Appellee asserted multiple reasons why arbitration should not be ordered. He contended there was no agreement to arbitrate, he did not sign the contract requiring arbitration, and instead of creating a contract there were just ongoing negotiations and he rejected *964the offers. 7/19/17 Contra Motion. He asserted a non-signatory cannot be bound to an arbitration agreement when it is related to real estate. 7/19/17 Contra Motion. He further asserted the arbitration agreement is not enforceable because it denied him an adequate remedy. 7/19/17 Contra Motion. He contended his tort, UCC implied warranty, and Consumer Sales Practices Act claims are not arbitrable. 7/19/17 Contra Motion. He further argued Appellant waived arbitration by failing to file a demand for arbitration. 7/19/17 Contra Motion. He lastly argued R.C. 4113.62(D) voids the arbitration clause because the statute precludes arbitration for construction contracts for real estate in this state to occur in any other state than Ohio. 7/20/17 Supplemental Contra Motion. The arbitration clause at issue required arbitration to occur in West Virginia.

{¶ 12} The trial court held a hearing on August 7, 2017. Following the hearing, Appellant filed a reply and rebuttal to the contra motions once again requesting the court to stay the proceedings pending arbitration. 8/13/17 Motion to Compel Arbitration and Stay Proceedings.

{¶ 13} On February 2, 2018, the trial court denied the motion to compel arbitration. 2/2/18 J.E. The majority of the trial court's reasoning focused on its conclusion that there was no contract to arbitrate. It explained:

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Cite This Page — Counsel Stack

Bluebook (online)
119 N.E.3d 961, 2018 Ohio 3977, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carapellotti-v-breisch-crowley-ohctapp7jeffers-2018.