Citibank v. Wood

894 N.E.2d 57, 177 Ohio App. 3d 103, 2008 Ohio 2877
CourtOhio Court of Appeals
DecidedJune 13, 2008
DocketNo. 2007 CA 48.
StatusPublished
Cited by5 cases

This text of 894 N.E.2d 57 (Citibank v. Wood) 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
Citibank v. Wood, 894 N.E.2d 57, 177 Ohio App. 3d 103, 2008 Ohio 2877 (Ohio Ct. App. 2008).

Opinion

Donovan, Judge.

I. Procedural History

{¶ 1} This matter is before the court on the Notice of Appeal of Robert C. Wood, filed May 21, 2007. Wood and Citibank South Dakota, N.A. (“Citibank”) entered into an agreement pursuant to which Citibank extended credit to Wood, and Wood agreed to repay the principal amount plus interest to Citibank. Wood failed to pay pursuant to the terms of the agreement, and Citibank obtained a judgment against Wood in the amount of $7,821.44, in Clark County Municipal Court. Wood pursued arbitration with Blue Ridge Arbitration, and on March 22, 2005, Blue Ridge issued a decision finding that Wood had settled his account with Citibank in full, and the decision ordered Citibank to set aside any judgments it had obtained against Wood. The award issued by Blue Ridge contained a certificate of service indicating that it was mailed to Citibank on April 4, 2005, via first class mail.

{¶ 2} On July 7, 2005, Citibank filed a “Petitioner’s Motion to Vacate Award” in Clark County Common Pleas Court, pursuant to R.C. 2711.10(D), which provides, “In any of the following cases, the court of common pleas shall make an order vacating the award upon the application of any party to the arbitration if: . * * * (D) The arbitrators exceeded their powers, or so imperfectly executed them that a mutual, final, and definite award upon the subject matter submitted was not made.” R.C. 2711.13 requires that notice to vacate an award “must be served upon the adverse party or his attorney within three months after the award is delivered to the parties in interest.” Citibank did not attach a copy of the parties’ agreement to its petition.

*105 {¶ 3} Wood filed a pro se answer and counterclaim for confirmation of the award. R.C. 2711.09 provides that an application for an order confirming an award may be made “[a]t any time within one year” after the award is issued. The trial court dismissed the counterclaim for confirmation without explanation. The trial court then held a hearing on the motion to vacate on September 30, 2005, at which it did not take evidence from any witnesses or admit any exhibits. Instead, it listened to unsworn statements from Wood and counsel for Citibank. According to Citibank, the parties’ agreement provides, should a dispute arise between the parties, that either party may elect to arbitrate the dispute using one of the following three organizations: the American Arbitration Association (“AAA”), JAMS, or the National Arbitration Forum (“NAF”).

{¶ 4} Wood argued, “[T]here is without doubt an agreement in place which calls for arbitration in the Blue Ridge Arbitration forum in disputes between the plaintiff and the defendant in any matter subsequent to July 12, 2004.” According to Wood, he effected an accord and satisfaction with Citibank, pursuant to R.C. 1303.40. Wood stated that he sent an “agreement” and a “negotiable instrument” to Citibank. According to Wood, “[C]lear instructions indicated that to refuse the new terms, plaintiff was to return the instrument without negotiating it. Instead plaintiff negotiated that instrument on July 12, 2004. Thus, the plaintiff is bound to arbitration under the agreement.” The Clark County Common Pleas Court granted Citibank’s motion to vacate.

{¶ 5} In an entry issued in response to Wood’s motion for findings of fact and conclusions of law, the trial court determined that the motion to vacate had been timely filed and that Citibank “cannot be compelled to arbitrate a dispute with Blue Ridge Arbitration Forum when said organization was not one of the three organizations set forth in the agreement.”

{¶ 6} Wood appealed, and we reversed and remanded the matter for further proceedings, finding that the trial court had committed various procedural errors. In terms of the timeliness of the petition to vacate, we noted, “[T]he current record indicates that Citibank’s motion to vacate was filed on July 7, 2005, and was not served on Wood until July 9, 2005. As a result, Citibank’s motion appears untimely on its face. However, because the record is incomplete and because the trial court applied an improper method of analysis, we will remand this matter to allow Citibank and Wood to present evidence on the date of mailing or the postmark date.” Citibank South Dakota, N.A. v. Wood, 169 Ohio App.3d 269, 2006-Ohio-5755, 862 N.E.2d 576, ¶ 28.

{¶ 7} “What this means for purposes of the present case is that Citibank may be successful in invoking the trial court’s jurisdiction if Citibank has a copy of the postmarked envelope for the arbitration award or can establish by other evidence that the award was mailed on a date later than the date reflected on the award.” *106 Id. at ¶ 29. We further noted in a footnote that “Wood is required to present some extrinsic evidence of the date that the award was mailed, since the statement on the face of the award was not made under oath. As we have stressed, the court must be presented with legally admissible evidence, not unauthenticated documents.” Id. at fn. 1.

{¶ 8} We further noted, “[E]ven if Citibank established jurisdiction, Citibank failed to present evidence in the trial court to justify vacating the arbitration award. In this regard, Citibank’s attorney claimed, again without proof, that its contract with Wood did not specify Blue Ridge as a proper arbitration forum. However, no copy of the contract is in the record. In addition, no witnesses identified or verified any documents that were, in fact, attached to the motion to vacate. We have previously noted that bare contentions are insufficient to satisfy the burden of proof that R.C. 2711.10 imposes on parties filing objections to arbitration awards.” (Emphasis sic.) Id. at ¶ 32.

{¶ 9} We also noted, “In view of Citibank’s failure to present any evidence to the trial court, the court’s decision was clearly erroneous.” (Emphasis sic.) Id. at ¶ 35.

{¶ 10} We also noted that Citibank had failed to attach various documents to its motion to vacate, as required by R.C. 2711.14, such as the arbitration agreement. Finally, we noted that Wood’s motion to confirm the award was timely, pursuant to R.C. 2711.09, and we noted that a court must grant a timely motion to confirm “ ‘unless a timely motion for modification or vacation has been made and cause to modify or vacate is shown.’ ” Id. at ¶ 42, quoting Warren Edn. Assn. v. Warren City Bd. of Edn. (1985), 18 Ohio St.3d 170, 18 OBR 225, 480 N.E.2d 456, syllabus. In other words, “the court’s only choices were to confirm the award or vacate it upon a finding under R.C. 2711.10(D) that the arbitrator had exceeded his authority. The court could not possibly have made this choice before hearing evidence on the matter. As a result, the court clearly erred by granting a motion to dismiss the counterclaim prior to the hearing.” Id. at ¶ 46.

{¶ 11} On January 3, 2007, a judicial notice of guardianship was filed with the trial court, providing, “In October 2005 Robert C. Wood has been appointed a guardian, Ann K. Wood, who will be standing in for Robert C. Wood from this time forward.” Attached to the notice is a document entitled “Letters of Guardianship” from the Probate Court of Clark County.

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894 N.E.2d 57, 177 Ohio App. 3d 103, 2008 Ohio 2877, Counsel Stack Legal Research, https://law.counselstack.com/opinion/citibank-v-wood-ohioctapp-2008.