Republic Fin., L.L.C. v. Johnson

CourtOhio Court of Appeals
DecidedMay 7, 2026
Docket115678
StatusPublished

This text of Republic Fin., L.L.C. v. Johnson (Republic Fin., L.L.C. v. Johnson) 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
Republic Fin., L.L.C. v. Johnson, (Ohio Ct. App. 2026).

Opinion

[Cite as Republic Fin., L.L.C. v. Johnson, 2026-Ohio-1659.]

COURT OF APPEALS OF OHIO

EIGHTH APPELLATE DISTRICT COUNTY OF CUYAHOGA

REPUBLIC FINANCE, LLC, :

Plaintiff-Appellee, : No. 115678 v. :

DORINZA JOHNSON, :

Defendant-Appellant. :

JOURNAL ENTRY AND OPINION

JUDGMENT: AFFIRMED RELEASED AND JOURNALIZED: May 7, 2026

Civil Appeal from the Cuyahoga County Common Pleas Court Case No. CV-24-106080

Appearances:

Bleecker Brodey & Andrews, Yana T. Ditchey, and Traci B. Shuttz, for appellee.

Dorinza Johnson, pro se.

MICHELLE J. SHEEHAN, A.J.:

{¶ 1} This appeal arises from plaintiff-appellee Republic Finance, LLC’s

(“Republic Finance”) action to recover amounts due under a consumer loan

agreement executed by defendant-appellant Dorinza Johnson (“Johnson”). After a

bench trial, the trial court found in favor of Republic Finance and ordered Johnson to pay $6,070.08 plus prejudgment interest, late fees, and postjudgment interest at

the contract rate of 23.60%. Johnson appeals from this judgment raising the

following sole assignment of error:

The trial court erred and abused its discretion in determining to ignore the inducement clause requirement of a valid arbitration agreement.

{¶ 2} Upon a thorough review of the record, we affirm the trial court’s

decision. While the arbitration of legal disputes is favored under Ohio law, the onus

of initiating arbitration proceedings falls on the parties and not the trial court.

Because neither party moved the trial court pursuant to R.C. Ch. 2711 to stay the

lower court proceedings and enforce the arbitration agreement, the trial court did

not err by failing to sua sponte order the parties to arbitration. Moreover, by

participating, without objection, throughout the lower court proceedings, Johnson

waived any right she may have had to have this matter resolved at arbitration.

Johnson’s sole assignment of error is not well-taken.

Statement of Facts

{¶ 3} In August 2023, Johnson entered into a consumer-loan agreement

with Republic Finance. As part of the loan agreement, the parties executed an

arbitration agreement that provided that either party “may elect to arbitrate

disputes between the parties.” (Emphasis added.) Arbitration Agreement at p. 1.

After making initial payments on the loan, Johnson defaulted by not submitting the

required monthly payments. Consequently, in October 2024, Republic Finance

instituted this matter to recover the remaining amounts due and owing. {¶ 4} From October 2024 through August 2025, the instant matter

proceeded before the lower court. The parties filed various motions and participated

in discovery. Several pretrial conferences were held as well as an unsuccessful

mediation. On August 27, 2025, a bench trial was conducted.

{¶ 5} At the conclusion of the bench trial, the trial court found in favor of

Republic Finance and against Johnson. Pursuant to the judgment entry, Johnson

was ordered to pay $6,070.08 plus prejudgment interest in the amount of

$2,841.53, late fees totaling $45, and postjudgment interest at the contract rate of

23.60%. Johnson appeals.

Law and Analysis

Standard of Review

{¶ 6} R.C. Ch. 2711 governs arbitration in Ohio. Whether the trial court

erred by failing to sua sponte order the parties to participate in arbitration involves

interpretation of these statutes. Therefore, our standard of review is de novo.1

See generally Parma v. Burgos, 2019-Ohio-2445, ¶3 (8th Dist.)

(“Statutory interpretation is a question of law, reviewed de novo.”).

1 In their appellate briefing, the parties assert that the applicable standard of review is

abuse of discretion. The parties correctly state that a trial court’s grant or denial of a motion to stay and enforce arbitration is generally reviewed under an abuse-of-discretion standard. This case, however, does not involve a trial court’s ruling on a pending motion to stay and enforce arbitration. The sole issue before us is whether the trial court erred in failing to sua sponte enforce the parties’ arbitration agreement, which involves our interpretation of the statutes governing arbitration under R.C. Ch. 2711. Arbitration Under Ohio Law

{¶ 7} The sole issue before us is whether the trial court was obligated to sua

sponte refer the parties to arbitration when neither party had moved the trial court

to stay the lower proceedings and enforce the arbitration agreement pursuant to

R.C. Ch. 2711. In Chef Italiano v. Crucible Dev. Corp., 2005-Ohio-4254, ¶ 49 (9th

Dist.), the Ninth District aptly answered this very question. Specifically, the Ninth

District addressed whether “the trial court erred when it failed to recognize the

arbitration clause of the contract between Appellant and Crucible” and whether

“such failure constituted reversible error.” Id. Neither party raised the issue of

arbitration before the trial court, but rather, the appellant raised it for the first time

on appeal. Id. at ¶ 55.

{¶ 8} To answer this question, the Ninth District reviewed the statutes

relating to arbitration under R.C. Ch. 2711. Id. at ¶ 50-51. Specifically, the Ninth

District noted that R.C. 2711.02(B) provides that if a trial court finds that a dispute

is subject to arbitration under an agreement, it “shall on application of one of the

parties stay the trial of the action . . . .” (Emphasis in original.) Id. at ¶ 51. Thus,

the Ninth District concluded that “it was clear that the trial court can refer a matter

to arbitration only at the request of one of the parties; it cannot make the referral

sua sponte.” (Emphasis added.) Id. at ¶ 51. By raising arbitration for the first time

on appeal, the Ninth District concluded that the appellant had waived its right to

arbitration and, moreover, the trial court did not err when it failed to refer the

parties to arbitration. Id. at ¶ 56; accord Milling Away, LLC v. Infinity Retail Environments, Inc., 2008-Ohio-4691, ¶ 8 (9th Dist.) (“A trial court may not,

however, refer the parties to arbitration sua sponte.”). Specifically, “a party may

waive its right to arbitration if it fails to properly raise the arbitration clause before

the trial court.” Id. at ¶ 53.

{¶ 9} This court has previously held that a party may waive its right to

arbitrate. Victor v. Kaplan, 2021-Ohio-2840, ¶ 11 (8th Dist.); Mills v. Jaguar-

Cleveland Motors, Inc., 69 Ohio App.2d 111, 113 (8th Dist. 1980); Std. Roofing Co.

v. John G. Johnson & Sons Constr. Co., 54 Ohio App.2d 153, 157 (8th Dist. 1977). A

party waives its right to arbitrate by conduct that is inconsistent with arbitration.

Victor at ¶ 11. ‘“The essential question is whether, based on the totality of

circumstances, the party seeking arbitration has acted inconsistently with the right

to arbitrate.’” Id., quoting Phillips v. Lee Homes, 1994 Ohio App. LEXIS 596, * 8

(8th Dist. Feb. 17, 1994). In general, the “[f]ailure to move for a stay, coupled with

responsive pleadings, will constitute a defendant’s waiver.” Mills at 113; Std.

Roofing Co. at 157; Richard L. Bowen & Assoc. v. 1200 W. 9th St. Ltd. Partnership,

1991 Ohio App. LEXIS 5109, * 9 (8th Dist. Oct. 24, 1991). This court has also

identified a list of factors to consider in deciding whether a party acted inconsistently

with the right to arbitrate:

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Related

In re Application of Black Fork Wind Energy, L.L.C.
2013 Ohio 5478 (Ohio Supreme Court, 2013)
Skerlec v. Ganley Chevrolet, Inc.
2012 Ohio 5748 (Ohio Court of Appeals, 2012)
Italiano v. Crucible Dev. Corp., Unpublished Decision (8-17-2005)
2005 Ohio 4254 (Ohio Court of Appeals, 2005)
Milling Away v. Infinity Retail Enviro., 24168 (9-17-2008)
2008 Ohio 4691 (Ohio Court of Appeals, 2008)
Mills v. Jaguar-Cleveland
430 N.E.2d 965 (Ohio Court of Appeals, 1980)
Standard Roofing Co. v. John G. Johnson & Sons Construction Co.
376 N.E.2d 610 (Ohio Court of Appeals, 1977)
Victor v. Kaplan
2021 Ohio 2840 (Ohio Court of Appeals, 2021)
N. Star Med. Research, L.L.C. v. Kozlovich
2025 Ohio 5410 (Ohio Court of Appeals, 2025)

Cite This Page — Counsel Stack

Bluebook (online)
Republic Fin., L.L.C. v. Johnson, Counsel Stack Legal Research, https://law.counselstack.com/opinion/republic-fin-llc-v-johnson-ohioctapp-2026.