Norman v. Kellie Auto Sales, Inc.

2020 Ohio 4311, 158 N.E.3d 166
CourtOhio Court of Appeals
DecidedSeptember 3, 2020
Docket18AP-32
StatusPublished
Cited by4 cases

This text of 2020 Ohio 4311 (Norman v. Kellie Auto Sales, 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
Norman v. Kellie Auto Sales, Inc., 2020 Ohio 4311, 158 N.E.3d 166 (Ohio Ct. App. 2020).

Opinion

[Cite as Norman v. Kellie Auto Sales, Inc., 2020-Ohio-4311.]

IN THE COURT OF APPEALS OF OHIO

TENTH APPELLATE DISTRICT

Justin Norman, :

Plaintiff-Appellee, : No. 18AP-32 v. : (C.P.C. No. 17CV-5681)

Kellie Auto Sales, Inc., : (REGULAR CALENDAR)

Defendant-Appellant. :

D E C I S I O N

Rendered on September 3, 2020

On brief: Coffman Legal, LLC, and Matthew J.P. Coffman; Bryant Legal, LLC, and Daniel I. Bryant, for appellee.

On brief: Law Offices of Thomas Tootle Co., LPA, and Thomas Tootle, for appellant.

ON APPLICATION FOR RECONSIDERATION DORRIAN, J. {¶ 1} Plaintiff-appellee, Justin Norman, has filed an application for reconsideration, pursuant to App.R. 26(A)(1), of this court's decision in Norman v. Kellie Auto Sales, Inc., 10th Dist. No. 18AP-32, 2019-Ohio-360 ("Norman" or "original decision") filed February 5, 2019. For the reasons that follow, we grant Norman's application for reconsideration, vacate the original decision, and affirm the November 30, December 11, 2017, and January 9, 2018 judgments of the Franklin County Court of Common Pleas. I. Facts and Procedural History {¶ 2} The procedural history and facts of this case were summarized in the original decision. {¶ 3} Norman purchased a vehicle from defendant-appellant, Kellie Auto Sales, Inc. ("Kellie Auto"). Neither party disputes that Kelli Auto did not inform Norman the No. 18AP-32 2

vehicle was a rebuilt salvage. The retail installment contract was executed between the parties for the purchase and financing of the vehicle. As part of the sale, the parties also executed an arbitration agreement authorizing either party to "choose to have any dispute between [the parties] decided by arbitration and not in court of [sic] by jury trial." (Emphasis omitted.) Norman at ¶ 3. The agreement also set forth the process for arbitration. Once Norman became aware the vehicle was rebuilt salvage, the parties attempted to negotiate a resolution. Negotiations were not successful and, ultimately, Kellie Auto informed Norman it was invoking the arbitration agreement. A demand for arbitration was completed and submitted. Id. at ¶ 7. {¶ 4} Arbitration was conducted before an arbitrator from the American Arbitration Association. As summarized in the original decision, the arbitrator rendered an award as follows: On June 5, 2017, the arbitrator rendered an award in favor of Norman, having found that Kellie Auto had knowingly committed an unfair or deceptive act under the CSPA. Having heard and considered the parties' evidence, the arbitrator awarded $53,911.75 to Norman, a sum that included: (1) Economic damages – the unrebutted testimony was that [Norman] incurred economic damages in the amount of $7,430. (Down payment, tag fee and loan payments)

(2) Non-economic damages – while [Norman] testified he suffered non-economic damages of aggravation, frustration and humiliation, this testimony was not credible. Long after [Norman] found out about the salvage title he continued to drive the car. Early on, [Kellie Auto] offered to rescind the transaction which [Norman] refused. It appears to the Arbitrator that [Norman] held on to his remedy options for an extended period of time for the sole purpose of increasing his recovery. Non-economic damages will not be awarded;

(3) Attorney's fees and costs – [Norman] is entitled to his reasonable attorney's fees and costs for this knowing violation of the CSPA. [Norman] has submitted the affidavits of his attorneys (Ex. 23 and 24) along with the affidavit of Attorney DeRose (Ex. 25) attesting to the reasonableness of the rates submitted. The Arbitrator finds that applying the lodestar approach set forth by the Ohio Supreme Court in Bittner v. Tri- County Toyota (1991), 58 Ohio St. 3d 143 an attorney's fees award of $31,494.50 (an extra $1,000 is awarded for post- No. 18AP-32 3

hearing work) is appropriate. In addition, hearing fees of $127.25 will be imposed;

(4) The economic damage award shall be trebled to ($7,420 x 3) $22,290 pursuant to Rev. Code 1345.09. (See Pep Boys v. Vaughn, 2006-Ohio-698 (C.A. 10th 2006). While the Arbitrator may believe that treble damages are not factually justified he cannot apply his personal belief on an appropriate remedy that is not statutorily authorized. Treble damages are to be awarded. Bierlein v. Alex's Continental Inn, (1984) 16 Ohio App. 3d 301)

(Sic passim and emphasis added.) (Ex. A at 5-6, attached to Application.) The arbitrator also ordered Kellie Auto to pay $2,400 for the association's administrative fees and $1,500 for the arbitrator's compensation. The arbitrator's award constituted a full, final disposition of all claims submitted.

(Emphasis sic.) Norman at ¶ 9. {¶ 5} After the arbitration, Norman requested and, according to Norman, Kellie Auto's counsel agreed to provide payment to Norman pursuant to the arbitrator's award. However, Kellie Auto retained new counsel and refused to provide payment. Norman then filed an application for judgment and to confirm the arbitration award pursuant to R.C. 2711.09. Kellie Auto was served with Norman's application on June 30, 2017. {¶ 6} Construing Norman's application, pursuant to R.C. 2711.09, as an "action" under the Ohio's Consumer Sales Practices Act ("CSPA"), and R.C. 1345.092(B), on July 10, 2017 Kellie Auto filed a notice of cure offer with the court and an application to modify the arbitration award pursuant to R.C. 2711.11. Kellie Auto requested the trial court: "[I]ssue an order modifying and correcting the arbitration award at issue in this action," reducing the award to $9,930 (economic damages of $7,430 and attorney fees of $2,500), plus court costs or, alternatively, "remand this matter to the Arbitrator with instructions that he include an analysis of attorney's fees as required under Bittner v. Tri-County Toyota, 58 Ohio St.3d 143 (1991)." (Aug. 4, 2017 Mot. To Modify at 1, 10.)

Norman at ¶ 13.

{¶ 7} The trial court denied Kellie Auto's request to modify the arbitration award and granted Norman's application to confirm the award. Kellie Auto filed a motion for relief from judgment. The trial court denied the same. Kellie Auto appealed. No. 18AP-32 4

{¶ 8} On appeal, Kellie Auto raised as its first assignment of error that the trial court erred "when it refused to recognize the Defendant-Appellant's timely exercise of a 'right to cure' pursuant to R.C. 1345.092." Id. at ¶ 18. Norman sustained the assignment of error and concluded: R.C. 1345.092(A) is clear—a statutory cure offer can be made only after the consumer has commenced an action against an act or practice that violates R.C. Chapter 1345. R.C. 1345.092(A). But this statute does not prevent a supplier such as Kellie Auto from attempting to cure the problem with one or more offers to make the buyer whole before any such action, or even arbitration, occurs. That the first and only lawsuit filed by Norman was the action seeking to enforce the arbitration award premised on a CSPA claim does not change the operation of the statutory language of R.C. 1345.092(A) enabling Kellie Auto to make a statutory cure offer.

***

We find Kellie Auto's arguments well-taken. In harmonizing the CSPA with Ohio's arbitration statutes, a reviewing court may vacate or modify an arbitration award only as provided for in R.C. 2711.10 or 2711.11, respectively. In its brief, Kellie Auto states no error with the arbitrator's finding of liability, only with the damages awarded:

[Kellie Auto] asserts that the award of damages exceeds the amount allowable following a valid cure offer. R.C. § 2711.11 provides:

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Cite This Page — Counsel Stack

Bluebook (online)
2020 Ohio 4311, 158 N.E.3d 166, Counsel Stack Legal Research, https://law.counselstack.com/opinion/norman-v-kellie-auto-sales-inc-ohioctapp-2020.