Recent Ohio Court Ruling: Arbitration Procedures

In Franklin County, the Tenth District Appellate Court recently ruled that an association’s arbitration provisions in the governing documents were reasonable and fair to the members. A unit owner sued the association to challenge the decision to eliminate street parking. The association asked the court to postpone the suit until the matter was handled through arbitration as provided in the documents. The trial court denied the request to postpone stating that the arbitration provisions were not enforceable and unfair to the unit owners because the owner could not select the arbitrator and had to pay the arbitration costs regardless of the outcome.

The association appealed the decision of the trial court and the appellate court overturned the ruling finding that Ohio state law protections made the arbitration provisions fair. The provisions in the documents required the arbitrator to be independent. The court found that if the unit owner felt that the arbitrator was not independent that the unit owner could request that the court appoint a new arbitrator under state law. In addition, state law provides that the court can set aside an award achieved through arbitration if there is evidence of partiality by the arbitrator.

Reno v. Bethel Vill. Condo. Assn., 2008 Ohio 4462

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