Charlie's Dodge, Inc. v. Celebrezze

596 N.E.2d 486, 72 Ohio App. 3d 744, 1991 Ohio App. LEXIS 844
CourtOhio Court of Appeals
DecidedMarch 1, 1991
DocketNo. L-90-086.
StatusPublished
Cited by4 cases

This text of 596 N.E.2d 486 (Charlie's Dodge, Inc. v. Celebrezze) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Charlie's Dodge, Inc. v. Celebrezze, 596 N.E.2d 486, 72 Ohio App. 3d 744, 1991 Ohio App. LEXIS 844 (Ohio Ct. App. 1991).

Opinion

Per Curiam.

This matter is before the court on appeal from the Lucas County Court of Common Pleas. The facts giving rise to this appeal are as follows.

On September 21, 1988, appellants, Charlie’s Dodge, Inc. and Grogan Chrysler-Plymouth, Inc., were each served with a subpoena duces tecum by the Attorney General of the state of Ohio. Essentially, the Attorney General under R.C. 1345.06 sought documents which would prove that appellants regularly charged consumers for the delivery and handling of newly purchased automobiles. The Attorney General was investigating possible consumer fraud under R.C. Chapter 1345, the Consumer Sales Practices Act (“CSPA”).

On September 21, 1988, appellants filed a motion to quash the subpoenas. Appellants argued that the Attorney General had insufficient grounds and/or authority in which to issue the subpoenas. In response, the Attorney General argued that the CSPA gives him broad authority to effectuate the purposes of the Act. The Attorney General explained that the practice of charging delivery and handling fees in the automobile sales industry has been used by unscrupulous dealers to fraudulently overcharge consumers for automobiles. Simply stated, some dealers will charge consumers for delivery and handling even though the manufacturer has already compensated the dealer for this service. With his response, the Attorney General included two preprinted *746 purchase orders from appellants’ respective businesses showing specific price categories for delivery and handling. When contract sales forms include a category for dealer “prep” charges, the Attorney General argued that he has reasonable cause to believe that the dealer is in violation of the CSPA.

On November 15, 1988, the court found that the Attorney General had reasonable cause to believe that appellants were engaging in an unfair or deceptive sales practice. Appellants’ motion to quash was denied.

On December 13, 1989, the parties agreed to allow the court to take possession of the requested documents until: (1) appellants agreed to voluntarily deliver the documents to the Attorney General, or (2) the court orders appellants to deliver the documents to the Attorney General following a contempt proceeding.

On March 7, 1990, the court found appellants in contempt of court for failing to obey the duly served subpoenas. Appellants were fined $250 and were granted ten days in which to purge their contempt of court. On March 7, 1990, appellants filed this instant appeal setting forth the following assignments of error:

“Appellant’s First Assignment of Error: The common pleas court erred in finding appellants in contempt for refusing to respond to subpoenas which the Attorney General had no authority to issue or serve upon the appellants.

“Appellants Second Assignment of Error: The lower court erred in failing to find that the Attorney General was required to comply with Revised Code § 1345.08 before investigating the appellants.

“Appellants Third Assignment of Error: The lower court erred in not finding that appellants’ rights protected by the Ohio and United States constitution were violated.”

We note at the outset that this court will not reverse a lower court’s finding of contempt absent an abuse of discretion. State, ex rel. Ventrone, v. Birkel (1981), 65 Ohio St.2d 10, 11, 19 O.O.3d 191, 417 N.E.2d 1249, 1250. Contempt has been defined by the Supreme Court of Ohio as “ * * * conduct which brings the administration of justice into disrespect, or which tends to embarrass, impede or obstruct a court in the performance of its functions.” Windham Bank v. Tomaszczyk (1971), 27 Ohio St.2d 55, 56 O.O.2d 31, 271 N.E.2d 815, paragraph one of the syllabus.

Because appellants’ first and third assignments of error address the issue of the Attorney General’s authority to issue subpoenas in this case, appellants’ first and third assignments of error will be discussed together. Appellants contend that the Attorney General lacked reasonable cause to issue and serve the subpoenas under the CSPA.

*747 R.C. 1345.06 provides in pertinent part:

“(A) If, by his own inquiries or as a result of complaints, the attorney general has reasonable cause to believe that a person has engaged or is engaging in an act or practice that violates Chapter 1345. of the Revised Code, he may investigate.

“(B) For this purpose, the attorney general may administer oaths, subpoena witnesses, adduce evidence, and require the production of relevant matter.

“(D) A person subpoenaed under this section shall comply with the terms of the subpoena, unless the parties agree to modify the terms of the subpoena or unless the court had modified or quashed the subpoena, extended the return day of the subpoena, or issued any other order with respect to the subpoena prior to its return day.

“If a person fails without lawful excuse to obey a subpoena or to produce relevant matter, the attorney general may apply to the court of common pleas of the county in which the person subpoenaed resides or has his principal place of business for an order compelling compliance.”

Appellants have attempted to equivocate the CSPA’s reasonable cause standard with the standard of proof required in a civil case involving fraud, breach of contract or negligence. Appellants have also compared the CSPA’s reasonable cause standard with the standard of proof required in criminal cases. However, these comparisons are unwarranted given the purpose behind the CSPA. The CSPA was enacted to protect consumers from deceptive and unconscionable sales practices and to promote the future development of fair consumer sales practices. Thomas v. Sun Furniture Co. (1978), 61 Ohio App.2d 78, 81, 15 O.O.3d 92, 94, 399 N.E.2d 567, 569. In furtherance of these goals, the Act was intended to provide an avenue for defrauded consumers who would otherwise have difficulty proving their case under a more traditional cause of action. Herdeg, Ohio Consumer Law (2 Ed.1989) 41. The CSPA is remedial in nature and therefore entitled to a liberal construction. Id. at 42, citing Liggins v. May Co. (1975), 44 Ohio Misc. 81, 73 O.O.2d 306, 337 N.E.2d 816. Under the CSPA the Attorney General has broad authority in which to enforce its provisions. Ohio Consumer Law, supra, at 78.

R.C. 1345.06(A) does not require the Attorney General to show definitive proof of a violation before issuing subpoenas. Rather, the Attorney General is merely required to look at the evidence and to rely on his own good judgment in deciding whether or not to issue subpoenas. In the present case, appellants’ preprinted purchase orders showing specific price categories for *748

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Bluebook (online)
596 N.E.2d 486, 72 Ohio App. 3d 744, 1991 Ohio App. LEXIS 844, Counsel Stack Legal Research, https://law.counselstack.com/opinion/charlies-dodge-inc-v-celebrezze-ohioctapp-1991.