For a number of years, arbitration was used primarily in commercial trade disputes, and later in labor and trade union disputes. More recently, however, arbitration clauses have made their way into ordinary consumer contracts and transactions, oftentimes vis-a-vis fine print contained in consumer loans, insurance policies, and garden variety purchase agreements. Today, arbitration clauses are now being used in credit card transactions. What is little known by many is that the use of arbitration in Ohio results from provision in Ohio law that must be complied with in order to benefit from arbitration provisions in contracts.
Arbitration in Ohio is governed by Title 2711 of the Ohio Revised Code. Initially, the law states, “A provision in any written contract...to settle by arbitration...shall be valid, irrevocable, and enforceable, except upon grounds that exist at law or in equity for the revocation of any contract (ORC 2711.01(A)). The exceptions to this statute relate to certain real estate issues.
Any party can seek a stay of any legal proceeding if a valid arbitration provision is contained in the contract (ORC 2711.02). The succeeding party may petition the court to enforce the arbitration reward within one year (ORC 2711.09). When a motion is made.. to confirm an arbitration award, a court must grant the motion unless a timely motion for modification or vacation has been made and cause to modify or vacate is shown. Absent such a challenge to the arbitration award, the court does not have discretion under § 2711.09 to deny the application to confirm the award, MBNA Am. Bank, N.A. v. O'Brien, 168 Ohio App. 3d 137.
Any application to enforce an arbitration award must contain the following:
1. The agreement, the selection or appointment, if any, of an additional arbitrator or umpire, and each written extension of the time within which to make the award;
2. The award;
3. Each notice, affidavit, or other paper used upon an application to confirm, modify, or correct the award, and a copy of each order of the court upon such an application
There are rare instances when a court will not enforce an arbitration provision. To avoid controversy, many courts demand that such provisions comply with standard American Arbitration Association clauses such as the following :
“Any controversy or claim arising out of or relating to this contract, or the breach thereof, shall be settled by arbitration administered by the American Arbitration Association in accordance with its Commercial Arbitration Rules, and judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.”
The reader is cautioned that additional arbitration provisions apply in medical disputes.
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