Zilbert v. Proficio Mtge. Ventures, L.L.C.

2014 Ohio 1838
CourtOhio Court of Appeals
DecidedMay 1, 2014
Docket100299
StatusPublished
Cited by11 cases

This text of 2014 Ohio 1838 (Zilbert v. Proficio Mtge. Ventures, L.L.C.) 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
Zilbert v. Proficio Mtge. Ventures, L.L.C., 2014 Ohio 1838 (Ohio Ct. App. 2014).

Opinion

[Cite as Zilbert v. Proficio Mtge. Ventures, L.L.C., 2014-Ohio-1838.]

Court of Appeals of Ohio EIGHTH APPELLATE DISTRICT COUNTY OF CUYAHOGA

JOURNAL ENTRY AND OPINION No. 100299

ROGER ZILBERT PLAINTIFF-APPELLANT

vs.

PROFICIO MORTGAGE VENTURES, L.L.C., ET AL. DEFENDANTS-APPELLEES

JUDGMENT: AFFIRMED IN PART, REVERSED IN PART, AND REMANDED

Civil Appeal from the Cuyahoga County Court of Common Pleas Case No. CV-13-805479

BEFORE: Blackmon, J., Jones, P.J., and S. Gallagher, J.

RELEASED AND JOURNALIZED: May 1, 2014 ATTORNEY FOR APPELLANT

Brian D. Spitz The Spitz Law Firm, L.L.C. 4568 Mayfield Road Suite 102 South Euclid, Ohio 44121

ATTORNEYS FOR APPELLEES

James R. Pearl Law Office of James R. Pearl, Jr. 9393 Olde Eight Road Northfield, Ohio 44067

Jay E. Krasovec Jonathon W. Groza Ice Miller, L.L.P. Fifth Third Center 600 Superior Avenue, East Suite 1701 Cleveland, Ohio 44114

PATRICIA ANN BLACKMON, J.: {¶1} Appellant Roger Zilbert (“Zilbert”) appeals the trial court’s decision

granting the motion to stay pending arbitration of appellee Proficio Mortgage Ventures,

L.L.C. (“Proficio”) and two of its employees, Mark Nagy (“Nagy”) and Todd Liguzinski

(“Liguzinski”). Zilbert assigns the following errors for our review:

I. The trial court committed reversible error in granting appellees’ motion to stay pending arbitration in Salt Lake City, Utah, as the forum selection clause contained in the employment agreement is overreaching and substantively unconscionable because it has the effect of blocking most claims.

II. The trial court erred in granting appellees’ motion to stay pending arbitration when Zilbert’s claims clearly fall outside the scope of the employment agreement as drafted solely and exclusively by appellees.

III. The trial court committed reversible error when it stayed Zilbert’s claim against Nagy and Liguzinski, as they are not parties to, and thus, cannot enforce the arbitration provision.

IV. The trial court erred in finding the arbitration agreement valid and enforceable because the manner in which it was executed was procedurally unconscionable.

{¶2} Having reviewed the record and pertinent law, we affirm in part, and

reverse in part, the trial court’s decision. The apposite facts follow.

{¶3} On May 31, 2012, Zilbert commenced employment with Proficio as a

mortgage loan officer. Zilbert signed an employment agreement (“Employment

Agreement”) contemporaneously with his hiring. On August 15, 2012, Proficio

terminated Zilbert.

{¶4} On April 23, 2013, Zilbert filed a wrongful termination complaint against

Proficio, Nagy, and Liguzinski. Zilbert, who is of the Jewish faith, alleged causes of action for retaliatory discrimination, religious discrimination, wrongful termination based

on religious discrimination, intentional infliction of emotional distress, and violation of

public policy.

{¶5} On May 14, 2013, Proficio, Nagy, and Liguzinski (“appellees”) filed a

motion to dismiss Zilbert’s complaint or in the alternative a motion to order arbitration, or

motion to stay the action pending resolution of arbitration. Appellees argued Zilbert’s

complaint should be dismissed due to improper venue and the trial court’s lack of subject

matter jurisdiction because of a mandatory arbitration clause contained in the

Employment Agreement signed by the parties.

{¶6} On June 3, 2013, Zilbert filed his motion in opposition to appellees’ motion.

On June 7, 2013, appellees filed a response to Zilbert’s motion in opposition. On

August 16, 2013, the trial court denied appellees’ motion to dismiss. The trial court

granted appellees’ alternative motion to stay the action pending resolution of arbitration

after finding the Employment Agreement to be valid and enforceable. Zilbert now

appeals.

Stay Pending Arbitration

{¶7} In the first assigned error, Zilbert argues the trial court erred when it

granted the motion to stay pending arbitration in Salt Lake City, Utah.

{¶8} Preliminarily, we note when addressing whether a trial court has properly

granted a motion to stay and compel arbitration, the appropriate standard of review depends on “the type of questions raised challenging the applicability of the arbitration

provision.” McCaskey v. Sanford-Brown College, 8th Dist. Cuyahoga No. 97261,

2012-Ohio-1543, ¶ 7.

{¶9} Generally, an abuse of discretion standard applies; for example, when the

issue to be determined is whether a party has waived its right to arbitrate a given dispute.

Id., citing Milling Away, L.L.C. v. UGP Properties, L.L.C., 8th Dist. Cuyahoga No.

95751, 2011-Ohio-1103, ¶ 8. Additionally, when the issue is whether a party has agreed

to submit an issue to arbitration or questions of unconscionability are raised, we review

the matter under a de novo standard of review. Shumaker v. Saks Inc., 163 Ohio App.3d

173, 2005-Ohio-4391, 837 N.E.2d 393 (8th Dist.); Taylor Bldg. Corp. of Am. v. Benfield,

117 Ohio St.3d 352, 2008-Ohio-938, 884 N.E.2d 12.

{¶10} In the instant case, we apply a de novo standard of review because we are

reviewing the trial court’s decision to grant a motion to stay after finding that the claims

are subject to arbitration. The abuse of discretion standard of review has no application

in the context of the court deciding to stay proceedings pending the outcome of arbitration

because a stay in such circumstances is mandatory, not discretionary. N. Park

Retirement Community Ctr., Inc. v. Sovran Cos., Ltd., 8th Dist. Cuyahoga No. 96376,

2011-Ohio-5179, ¶ 7 (recognizing that R.C. 2711.02(B) imposes a mandatory duty to stay

the proceedings, leaving no discretion for the trial court upon being satisfied that the

matter was subject to arbitration); see also McCaskey at ¶ 9. “Under a de novo standard of

review, we give no deference to a trial court’s decision.” Brownlee v. Cleveland Clinic Found., 8th Dist. Cuyahoga No. 97707, 2012-Ohio-2212, citing Akron v. Frazier, 142

Ohio App.3d 718, 721, 756 N.E.2d 1258 (9th Dist.2001).

{¶11} Ohio courts recognize a presumption favoring arbitration when the issue of

the parties’ dispute falls within the scope of the arbitration provision. Taylor Bldg. Corp.

of Am. v. Benfield, 117 Ohio St.3d 352, 2008-Ohio-938, 884 N.E.2d 12, ¶ 27. In light of

this strong presumption favoring arbitration, all doubts should be resolved in its favor.

Hayes v. Oakridge Home, 122 Ohio St.3d 63, 2009-Ohio-2054, 908 N.E.2d 408, ¶ 15.

{¶12} Arbitration is favored because it provides the parties thereto with a relatively

expeditious and economical means of resolving a dispute. Schaefer v. Allstate Ins. Co.,

63 Ohio St.3d 708, 712, 590 N.E.2d 1242 (1992). Thus, if a dispute even arguably falls

within the parties’ arbitration provision, the trial court must stay the proceedings until

arbitration has been completed. Fields v. Herrnstein Chrysler, Inc., 4th Dist. Pike No.

12CA827, 2013-Ohio-693, ¶ 15, citing Tomovich v. USA Waterproofing & Foundation

Servs., Inc., 9th Dist. Lorain No. 07CA9150, 2007-Ohio-6214, ¶ 8.

{¶13} Ohio’s strong public policy favoring arbitration is codified in Chapter 2711

of the Revised Code. Westerfield v. Three Rivers Nursing & Rehab. Ctr., L.L.C., 2d

Dist. Montgomery No. 25347, 2013-Ohio-512, ¶ 17. Under R.C. 2711.02(B) on

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