Fields v. Herrnstein Chrysler, Inc.

2013 Ohio 693
CourtOhio Court of Appeals
DecidedFebruary 7, 2013
Docket12CA827
StatusPublished
Cited by9 cases

This text of 2013 Ohio 693 (Fields v. Herrnstein Chrysler, Inc.) 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
Fields v. Herrnstein Chrysler, Inc., 2013 Ohio 693 (Ohio Ct. App. 2013).

Opinion

[Cite as Fields v. Herrnstein Chrysler, Inc., 2013-Ohio-693.]

IN THE COURT OF APPEALS OF OHIO FOURTH APPELLATE DISTRICT PIKE COUNTY

JAMIE FIELDS, : : Plaintiff-Appellant, : Case No. 12CA827 : vs. : : HERRNSTEIN CHRYSLER, INC., : DECISION AND et al., : JUDGMENT ENTRY : Defendants-Appellees. : Released: 02/07/13 _____________________________________________________________ APPEARANCES:

Jason Shugart and D. Dale Seif, Jr., Seif & Shugart, LLC, Waverly, Ohio, for Appellant.

Christina J. Marshall and John R. Conley, Sutter O’Connell, Cleveland, Ohio, for Appellees, Chrysler Group, LLC, Herrnstein Chrysler, Inc., Bart Herrnstein and Todd Montgomery.

Dale A. Stalf, Wood & Lamping LLP, Cincinnati, Ohio, for Appellee, Capital One Auto Finance, a division of Capital One, N.A. _____________________________________________________________

McFarland, P.J.

{¶1} This is an appeal from a decision by the Pike County Common

Pleas Court which granted Appellees’ joint motion to compel arbitration and

stayed the below action pending arbitration.1 On appeal, Appellant, Jamie

Fields, raises two assignments of error, contending that 1) the trial court

1 The motions of Appellees were actually granted in part and denied in part, which will be more fully discussed infra. Pike App. No. 12CA827 2

committed reversible error by rewriting the arbitration agreement between

the parties and ordering to arbitration Appellant’s claims against parties,

Todd A. Montgomery and Bart Herrnstein, who were neither parties to the

superseding arbitration clause, nor signatories to the arbitration agreement or

contracts; and 2) the trial court committed reversible error by ordering to

arbitration Appellant’s claims against defendant Chrysler Group, LLC, when

Chrysler Group, LLC is neither a signatory, nor a party to the contract or

arbitration agreement.

{¶2} Because we conclude that the claims against the nonsignatories

stemmed from the same transaction as the claims against the signatories, and

because we conclude that the claims are intertwined as between the two and

alleged interdependent and concerted misconduct, we find no abuse of

discretion on the part of the trial court in ordering a stay and referring the

matter to arbitration. Thus, both of Appellant’s assignments of error are

overruled. Accordingly, the decision of the trial court is affirmed.

FACTS

{¶3} On July 10, 2010, Appellant, Jamie Fields, purchased a new,

2010 Jeep Grand Cherokee from Appellee, Herrnstein Chrysler, Inc. The

vehicle purchase was financed by Capital One Auto Finance, Inc., an

assignee of Herrnstein Chrysler, Inc. under the Retail Installment Sale Pike App. No. 12CA827 3

Contract signed by Appellant and Appellee, Herrnstein Chrysler, Inc. This

contract specified that Appellee, Capital One Auto Finance, Inc. was an

assignee under the terms of the agreement. The contract also contained an

arbitration clause, which provided in pertinent part as follows:

“Any claim or dispute, whether in contract, tort, statute or

otherwise (including the interpretation and scope of this

Arbitration Clause, and the arbitrability of the claim or dispute),

between you and us or our employees, agents, successors or

assigns, which arises out of or relates to your credit application,

purchase or condition of this vehicle, this contract or any

resulting transaction or relationship (including any such

relationship with third parties who do not sign this contract)

shall, at your or our election, be resolved by neutral, binding

arbitration and not by a court action.”

{¶4} Appellant and Appellee, Herrnstein Chrysler, Inc., also executed

another, separate arbitration agreement that day, entitled Agreement to

Arbitrate. This agreement provided, in pertinent part, as follows:

“By entering into this Agreement to Arbitrate (“Agreement”),

Customer(s) and Dealership, including any Assignee

(collectively referred to as “the Parties”) agree, except as Pike App. No. 12CA827 4

otherwise provided in this Agreement, to settle by binding

arbitration any dispute between them regarding: (1) the

purchase/lease by Customer(s) of the above-referenced Vehicle;

(2) any products and services purchased in conjunction with the

Vehicle; (3) any financing obtained in connection with the

transaction; and/or (4) any dispute with respect to the existence,

scope or validity of this Agreement. Matters that the Parties

agree to arbitrate include, but are not limited to, disputes related

to the Retail Purchase/Retail Lease Agreement and any

documents incorporated therein by reference (whether such

references made in the Agreement or in the document itself),

the application for and terms of financing for the transaction,

the Finance/Lease Contract, any alleged promises,

representations and/or warranties made to or relied upon by the

Parties, and any alleged unfair, deceptive, or unconscionable

acts or practices.”

The Agreement to Arbitrate further provided that “[i]f any term of this

Agreement conflicts with the terms of any other document or agreement

between the Parties, the terms of this Agreement shall prevail.” The

Agreement to Arbitrate also provided that “THIS AGREEMENT IS Pike App. No. 12CA827 5

INCORPORATED BY REFERENCE INTO THE RETAIL

PURCHASE/RETAIL LEASE AGREEMENT.”

{¶5} Within the first few months after purchasing the vehicle,

Appellant noticed paint chipping and/or peeling off of the vehicle in several

different locations. After contacting both Herrnstein Chrysler and Chrysler

Group and being unable to obtain an offer to remedy the problem that was

acceptable to Appellant, Appellant initiated a complaint in the Pike County

Court of Common Pleas, naming Appellee, Herrnstein Chrysler Inc., Todd

A. Montgomery, Bart Herrnstein, Chrysler Group, LLC, Capital One Auto

Finance, Inc. as well as the John Doe finance agents and representatives of

Herrnstein Chrysler, Inc. The named defendants all filed answers to the

complaint, asserting as a defense the fact that Appellant’s claims were

required to be resolved through arbitration. After filing their answers, on

October 24, 2011, Appellees filed a joint motion to stay and compel

arbitration, citing the court to the arbitration clause contained within the

Retail Installment Sales Contract, as well as the separately executed

Agreement to Arbitrate.

{¶6} On November 10, 2011, Appellant filed a memorandum contra

the motion to stay and compel arbitration. In his motion, Appellant argued,

in part, that because the parties signed two different arbitration agreements, Pike App. No. 12CA827 6

which contained differing terms, that there could have been no meeting of

the minds. Appellant also argued that Herrnstein Chrysler was the only

signatory to the agreement. Appellees responded by arguing that the non-

signatories to the arbitration agreement could enforce the agreement due to

the “close relationship” between the entities involved and because the claims

were “intimately founded in and intertwined with the underlying contract

obligations.”

{¶7} An oral hearing regarding the matter was held on January 4,

2012, and the record contains a certification by the court reporter that the

hearing was recorded. However, Appellant failed to request that any

transcripts be transmitted to this Court on appeal.

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