Seyfried v. O'Brien

2017 Ohio 286
CourtOhio Court of Appeals
DecidedJanuary 26, 2017
Docket104212
StatusPublished
Cited by24 cases

This text of 2017 Ohio 286 (Seyfried v. O'Brien) 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
Seyfried v. O'Brien, 2017 Ohio 286 (Ohio Ct. App. 2017).

Opinion

[Cite as Seyfried v. O'Brien, 2017-Ohio-286.]

Court of Appeals of Ohio EIGHTH APPELLATE DISTRICT COUNTY OF CUYAHOGA

JOURNAL ENTRY AND OPINION No. 104212

JAMES SEYFRIED

PLAINTIFF-APPELLANT

vs.

PATRICK O’BRIEN, JR., CHEVROLET, INC., ET AL. DEFENDANTS-APPELLEES

JUDGMENT: AFFIRMED

Civil Appeal from the Cuyahoga County Court of Common Pleas Case No. CV-11-753162

BEFORE: McCormack, P.J., Stewart, J., and Boyle, J.

RELEASED AND JOURNALIZED: January 26, 2017 ATTORNEYS FOR APPELLANT

Rosemary Taft-Milby Michael Berler Ronald I. Frederick James Wertheim Frederick & Berler L.L.C. 767 East 185th Street Cleveland, OH 44119

ATTORNEYS FOR APPELLEE

Christopher A. Tipping Harry A. Tipping Harold M. Schwarz, III Stark & Knoll Co. L.P.A. 3475 Ridgewood Road Akron, OH 44333 TIM McCORMACK, P.J.:

{¶1} James Seyfried’s estate (“appellant” hereafter) appeals from a judgment of

the Cuyahoga County Court of Common Pleas that granted a motion to stay pending

arbitration in a consumer complaint. The trial court found James Seyfried signed a valid

and enforceable arbitration agreement regarding his purchase of a Chevrolet Cobalt. We

affirm.

Substantive Facts and Procedural History

{¶2} Seven years ago, on June 11, 2009, Seyfried went to a Chevrolet dealership

to purchase a used automobile. With the help of a salesman, James Stewart, he selected

a used 2009 Chevrolet Cobalt. Stewart prepared a handwritten “Buyer’s Order” for the

Cobalt, which Seyfried signed. To be allowed to take immediate possession of the

vehicle before he secured financing, Seyfried also signed a “Conditional Delivery

Agreement.” That agreement allowed him to cancel his purchase if third-party financing

could not be obtained within three days. Seyfried also signed a Used Vehicle Customer

Satisfaction Guarantee, which allowed him to cancel the deal within three days or 150

miles, if he was dissatisfied with the vehicle for any reason.

{¶3} The next day, on June 12, 2009, Seyfried executed several more documents

in connection with his purchase of the Cobalt. He signed an Agreement to Binding

Arbitration (“the arbitration agreement”). The agreement stated that “Binding

arbitration shall include all disputes * * * arising out of or in any way related to this

consumer transaction. Binding arbitration shall be used to resolve all claims arising from the purchase * * * of the vehicle * * * or any document or relationship established

in this transaction or related transaction regardless of whether the transactions were

consummated.” Before the signature line, there was a bolded warning in a larger font

and in capital letters: “READ BEFORE SIGNING. DO NOT SIGN THIS DOCUMENT

BEFORE YOU HAVE READ IT AND UNDERSTAND ITS CONTENTS.

ARBITRATION IS NOT REQUIRED FOR THE PURCHASE OR FINANCING OF

YOUR VEHICLE.”

{¶4} Raymond Cieslak, the dealership’s finance representative, testified that he

reviewed the arbitration agreement with Seyfried and explained that if there was any

dispute between him and the dealership, the dispute would go through a third-party

arbitrator as opposed to the courts. Seyfried gave no indication he did not understand

the arbitration agreement, expressed no objection, and signed the agreement voluntarily.

{¶5} Seyfried then signed a purchase contract for the Cobalt.1 Paragraph 14 of

the purchase contract stated: “If this vehicle is being delivered prior to finance approval,

buyer shall have 72 hours in which to secure or meet finance approval. Buyer will

assume full responsibility for all wear, tear and/or damage during this period and will

return vehicle in same condition at the end of the 72 hours, if finance approval is not

met.”

Under the purchase contract, the total balance for the used Cobalt was $16,902. It included a 1

sale price of $13,500, $399 in theft protection, service contract fee of $1,010, “GAP” care fee of $595, and other miscellaneous charges, offset by a trade-in credit of $750. {¶6} There was a two-sentence clause regarding arbitration in the purchase

contract and below the clause was a separate signature line. The sentence stated, “I

agree that any dispute from this transaction will go to arbitration and I have executed a

detailed arbitration agreement which is fully incorporated herein. Arbitration is not

required for the purchase or financing of your vehicle.” The signature line was left

blank in the purchase contract (and in subsequent purchase contracts signed by Seyfried

relating to his purchase of the Cobalt).

{¶7} On June 12, 2009, Seyfried also signed a loan agreement with Firefighters

Community Credit Union to finance the purchase of the vehicle. Seyfried, however,

failed to be approved for financing from the credit union. He did not cancel the

transaction within three days, but instead kept the vehicle. To help him obtain

financing from First Merit, Chevrolet’s financing company, Chevrolet increased the value

for his trade-in vehicle to $1,950 (but also increased the “GAP” care fees) and reduced

the total unpaid balance, and Seyfried signed another purchase contract on June 26, 2009,

with the reduced balance.2

{¶8} On April 13, 2011, Seyfried filed the instant class action complaint. The

complaint named as defendants four Patrick O’Brien Chevrolet entities (Patrick O’Brien

Jr. Chevrolet, Inc., Patrick O’Brien, Jr. Chevrolet II, Inc., Patrick O’Brien, Jr. Chevrolet

III, Inc., Patrick O’Brien, Jr. Chevrolet IV, Inc.), Patrick O’Brien, Jr., and Patrick O’Brien

Seyfried signed another purchase contract on July 2, 2009, backdated to June 26, with a 2

further reduced balance of $15,058.36. Sr. (collectively as “Chevrolet” hereafter), and First Merit (who was subsequently

dismissed from the lawsuit). The complaint alleged the defendants failed to disclose to

buyers of a used vehicle that the vehicle had been used as a rental vehicle, in violation of

the Consumer Sales Practices Act, R.C. 1345.02. Seyfried passed away in 2012, and his

estate was substituted as plaintiff. Apparently, the only asset in the estate is an interest

in the instant lawsuit.

{¶9} Chevrolet moved to stay the proceeding pending arbitration pursuant to

R.C. 2711.02. The trial court granted plaintiff’s request for discovery regarding the

validity of the arbitration agreement. On November 17, 2015, the trial court held a

hearing on Chevrolet’s motion. James Stewart, the sales person involved in the subject

transaction, Raymond Cieslak, the finance representative, and Debbie Kidwell, Seyfried’s

former fiancée, testified at the hearing. After the hearing, appellant submitted a brief

opposing the motion to stay, advancing two arguments: (1) the purchase contract was

fully integrated and it did not incorporate the arbitration agreement, and (2) the arbitration

agreement was substantively and procedurally unconscionable.

{¶10} The trial court found, as a factual matter, that Seyfried signed a binding

arbitration agreement and it granted Chevrolet’s motion to stay pending arbitration. The

court’s judgment entry stated:

The parties conducted discovery on the issue of whether a valid arbitration

agreement exists between the parties and on 11/17/2015 a hearing was held.

The court has duly considered the evidence admitted at the hearing as well as the arguments and post hearing briefs submitted by the parties. As a

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Bluebook (online)
2017 Ohio 286, Counsel Stack Legal Research, https://law.counselstack.com/opinion/seyfried-v-obrien-ohioctapp-2017.