[Cite as Premier Homes, Inc. v. Hanna Commercial, L.L.C., 2019-Ohio-1336.]

COURT OF APPEALS 

STARK COUNTY, OHIO 

FIFTH APPELLATE DISTRICT 

PREMIER HOMES, INC., ET AL. JUDGES: 

 Hon. William B. Hoffman, P.J 

 Plaintiffs Hon. Patricia A. Delaney, J. 

 Hon. Earle E. Wise, Jr., J. 

-vs- 

 Case No. 2018CA00108 

HANNA COMMERCIAL, LLC, ET AL. 

 

 Defendants-Cross-Claim 

 Defendants-Appellants 

and 

LAURI M. WEINFELD LIVING TRUST, 

LAURI M. WEINFELD AND 

IRWIN J. WEINFELD, M.D, AS 

CO-TRUSTEES, ET AL. 

 Defendants-Cross-Claim 

 Plaintiffs-Appellees 

O P I N IO N 

CHARACTER OF PROCEEDINGS: Appeal from the Stark County Court of 

Common Pleas, Case No. 2016CV00019 

 

JUDGMENT: Reversed and Remanded 

 

DATE OF JUDGMENT ENTRY: April 8, 2019 

For Cross-Claim Defendants-Appellants For Cross-Claim Plaintiffs-Appellees 

MICHAEL S. GRUBER SCOTT M. ZURAKOWSKI 

JASON N. BING JOSEPH J. PASQUARELLA 

6370 Mt. Pleasant Street, NW 4775 Munson Street, NW 

North Canton, Ohio 44720 P.O. Box 36963 

 Canton, Ohio 44735-6963 

KARL H. SCHNEIDER 

21 East State Street, Suite 1700 

Columbus, Ohio 43215 
Stark County, Case No. 2018CA00108 2 

Hoffman, P.J. 

{¶1} Appellants, Hanna Commercial, LLC, Chartwell Auctions, LLC, Joel D. 

Dutton, Jared E. Dutton, and Jack C. Davis (hereinafter “Chartwell parties”), appeal the 

judgment entered by the Stark County Common Pleas Court denying their motion to stay 

the claims against them pending arbitration. Appellees are Lauri M. Weinfeld Living Trust, 

Lauri M. Weinfeld and Irwin J. Weinfeld, M.D., as co-trustees and individually, and Dee 

Mar Lake Properties, LLC, (hereinafter “Weinfeld parties”) 

STATEMENT OF THE FACTS AND CASE 

{¶2} On November 11, 2015, the Chartwell parties and the Weinfeld parties 

entered into an auction agreement whereby the Weinfeld parties hired the Chartwell 

parteis to auction off their real property consisting of a home and a banquet center. The 

auction agreement included an arbitration provision in the event of a dispute arising from 

the agreement. The auction bids were accepted using a multi-parcel method. First the 

properties were offered separately, then they were offered together. The home was sold 

first separately to the plaintiffs, Premier Homes, Inc., Johannes Schlabach, and Rebecca 

Gingerich, and the banquet center was subsequently sold separately to another party, 

who did not go through with the purchase of the banquet center. As a result, the Chartwell 

parties re-auctioned and resold both properties to Leo and Carol Soehnlen, even though 

the home had already been purchased by the plaintiffs. A dispute arose over the true 

ownership of the properties. 

{¶3} On January 5, 2016, the plaintiffs filed a complaint against several of the 

Chartwell parties and Weinfeld parties seeking specific performance. Amended 

complaints were filed on April 14, and June 6, 2016, to include all of the named Chartwell 

parties and Weinfeld parties. Plaintiffs asserted claims for specific performance or in the 
Stark County, Case No. 2018CA00108 3 

alternative, breach of contract, promissory estoppel, negligent misrepresentation, 

violations of R.C. Chapter 4707 governing auctioneers, and intentional interference with 

contractual or prospective contractual relationships. 

{¶4} The Weinfeld parties filed a cross-claim against the Chartwell parties, with 

the exception of Appellant Davis, for indemnification and/or contribution. The Chartwell 

parties filed a motion to stay the cross-claim pending arbitration pursuant to the arbitration 

provision in the auction agreement and R.C. 2711.02(B) on April 27, 2016. 

{¶5} The arbitration provision in the agreement provides: 

In the event a dispute arises concerning this contract and/or the 

performance of Owner(s) or Auctioneer/Broker arising out of or in any way 

related to this contract or any of their acts or performances in connection 

therewith, the dispute shall be submitted to binding arbitration pursuant to 

the rules of the American Arbitration Association or similar arbitration 

organization. By agreeing to arbitration, all parties waive their right to court 

or jury trial. The party first filing shall have the right to select the arbitration 

or are waived. The arbitration will be administered by the arbitration 

association and will include the use of its arbitrators. The arbitrators shall 

have actual experience with the auction of the type of property being sold 

pursuant to this contract. All issues of the arbitration shall be determined 

by the arbitrator. All costs and/or fees of the arbitration shall be equally 

divided among all parties and all parties shall be responsible for the paying 

[of] their own attorney’s fees. All incidental, consequential, or punitive 

damages of any type or nature are hereby waived by all parties to this 
Stark County, Case No. 2018CA00108 4 

contract. Any and all disputes, whether by arbitration or otherwise, shall be 

venued, heard and decided in Cuyahoga County, Ohio. 

{¶6} On May 16, 2016, the Weinfeld parties filed an amended cross-claim 

against the Chartwell parties, adding claims for breach of contract, breach of good faith, 

fraudulent inducement/misrepresentation, violations of R.C. Chapters 4707 and 4735, 

breach of common law fiduciary duty, professional negligence, negligent 

misrepresentation, and promissory estoppel. In addition, the Weinfeld parties filed a thirdparty complaint against Appellant Davis for the identical claims, and a third-party 

complaint against the Soehnlens for declaratory judgment. 

{¶7} On May 23, 2016, the plaintiffs filed a motion to bifurcate the trial, separating 

their specific performance claim from their other legal causes of action. Plaintiffs also 

filed a memorandum in opposition to the Chartwell parties’ motion to stay the Weinfeld 

parties’ cross-claim pending arbitration. 

{¶8} The Soehnlens filed a counterclaim against the Weinfeld parties alleging 

specific performance, breach of contract, abuse of process, frivolous complaint, and 

respondent superior. Also, the Soehnlens filed a cross-claim against Plaintiffs alleging 

statute of frauds, abuse of process, and frivolous complaint, and included a negligence 

claim against the Chartwell parties. 

{¶9} On October 7, 2016, Appellant Davis filed a motion to stay the Weinfeld 

parties’ third-party claims against him pending arbitration pursuant to the arbitration 

provision in the auction agreement and R.C. 2711.02(B). The Weinfeld parties filed a 
Stark County, Case No. 2018CA00108 5 

memorandum in opposition to the Chartwell parties’ motion to stay their cross-claim 

pending arbitration. 

{¶10} On October 27, and 28, 2016, the trial court held a bench trial concerning 

the specific performance claims of Plaintiffs and the Soehnlens. All parties were present. 

By findings of fact and conclusions of law filed January 9, 2017, the trial court denied both 

claims for specific performance, finding the auction "was conducted with mistake and 

patent unfairness" and therefore requiring the Weinfeld parties to perform any sales 

contract "would be unconscionable." 

{¶11} On June 26, 2017, the trial court denied the Chartwell parties’ motions to 

stay the proceedings pending arbitration. The Chartwell parties filed a notice of appeal 

of this decision on July 20, 2017. Thereafter, Plaintiffs dismissed all of their claims against 

the Chartwell parties and the Weinfeld parties with prejudice, and the Soehnlens 

dismissed their cross-claims against Plaintiffs without prejudice. The Soehlens' 

counterclaim against the Weinfeld parties was disposed of via a partial dismissal filed 

August 30, 2017, and a decision on summary judgment filed November 16, 2017. As a 

result, Plaintiffs and the Soehnlens are not parties to the instant appeal. 

{¶12} By decision filed March 20, 2018, this Court found we could not determine 

the reason the trial court denied the stay pending arbitration, and remanded the instant 

action to the trial court to enter a new judgment with specific reasoning. Premier Homes, 

Inc. v. Hanna Commercial, LLC, 5th Dist. Stark No. 2017CA00135, 2018-Ohio-1126. 

{¶13} On remand, the trial court found the arbitration clause in the auction 

agreement violates public policy. The court found the arbitration clause circumvents the 

Weinfeld parties’ statutory causes of action and related remedies as set forth in R.C. 
Stark County, Case No. 2018CA00108 6 

4707.23(B) and R.C. 4707.261. The court further found arbitration would equate to a 

waiver of Chartwell parties’ liability for breach of fiduciary duties. Judgment Entry, July 6, 

2018. 

{¶14} It is from the July 6, 2018 judgment of the trial court the Chartwell parties 

prosecute their appeal, assigning as error: 

THE TRIAL COURT ERRED IN DENYING THE HANNA PARTIES’ 

MOTION(S) TO STAY THE WEINFELD PARTIES’ CROSS-CLAIM AND 

THIRD PARTY COMPLAINT AGAINST THE HANNA PARTIES PENDING 

ARBITRATION PURSUANT TO THE VALID AND ENFORCEABLE 

ARBITRATION PROVISION IN THE AGREEMENT. 

{¶15} The Chartwell parties argue the trial court erred in finding the arbitration 

clause void as against public policy. 

{¶16} “When addressing whether a trial court has properly granted motions to 

stay proceedings and compel arbitration, the standard of review is abuse of discretion.” 

Eagle v. Fred Martin Motor Co., 157 Ohio App.3d 150, 2004–Ohio–829, ¶ 10 (9th Dist. 

Summit), citing Carter Steel & Fabricating Co. v. Danis Bldg. Constr. Co., 126 Ohio 

App.3d 251, 254–255 (3d Dist. Logan 1998). However, at issue in the case sub judice is 

the enforceability of the arbitration clause as a matter of public policy, which is a question 

of law. See Murray v. David Moore Builders, Inc., 9th Dist. Summit No. 23257, 2006–

Ohio–6751, ¶ 8; Eagle at ¶ 11. “[W]hen an appellate court is presented with purely legal 

questions, the standard of review to be applied is de novo.” Eagle at ¶ 11. 
Stark County, Case No. 2018CA00108 7 

{¶17} Ohio’s public policy encourages the use of arbitration to settle disputes. 

Eagle at ¶ 14, citing Schaefer v. Allstate Ins. Co., 63 Ohio St.3d 708, 711–712 (1992). 

Accordingly, there exists a presumption in favor of arbitration when the disputed issue 

falls within the scope of the arbitration agreement. Eagle at ¶ 14, citing Williams v. Aetna 

Fin. Co., 83 Ohio St.3d 464, 471 (1998). Arbitration agreements are “valid, irrevocable, 

and enforceable, except upon grounds that exist at law or in equity for the revocation of 

any contract.” R.C. 2711.01(A); Eagle at ¶ 16. 

{¶18} Although on remand the trial court specifically found the agreement violated 

public policy, the Weinfeld parties argue because Chartwell Auctions, LLC and Hanna 

Commercial Real Estate did not sign the agreement and the agreement was not validly 

executed pursuant to instructions set forth in a letter from the Ohio Department of 

Agriculture, the Chartwell parties cannot compel arbitration in this matter. The Weinfeld 

parties did not raise this argument in their brief in opposition to the motion to stay in the 

trial court. A litigant who has the opportunity to raise an issue in the trial court, but 

declines to do so, waives the right to raise that issue on appeal. The Strip Delaware, LLC 

v. Landry's Restaurants, Inc., 5th Dist. Stark No. 2010CA00316, 2011–Ohio–4075, ¶41; 

State Farm Mut. Auto. Ins. Co. v. Cheeks, 5th Dist. Stark No. 2013CA00135, 2014-Ohio410, ¶12. 

{¶19} Further, in its January 9, 2017 judgment entry following trial on the equitable 

relief sought in the case, the trial court identified Appellants herein collectively as 

“Chartwell,” and Appellees herein as “the Weinfelds.” The court specifically found: 
Stark County, Case No. 2018CA00108 8 

The Weinfelds and Chartwell entered into an “Exclusive Auction 

Agreement” effective November 11, 2015, which provided Chartwell the 

“exclusive right and authority” to sell the Tudor Home and Banquet Center 

on behalf of the Weinfelds at auction (the “Auction Agreement”). [Exh. A, 

¶1]. The Weinfelds and Chartwell agreed this auction would be held on 

December 14, 2015 (the “Auction”). [Id. at ¶2]. The Auction Agreement 

was signed by Ms. Lauri Weinfeld and Jared Dutton as “auctioneer” on 

behalf of Chartwell. 

{¶20} Judgment Entry, January 9, 2017, Finding of Fact 8 

{¶21} This finding by the trial court was not appealed. Further, to enforce an 

arbitration clause it is only necessary the provision be in writing; a party's agreement to 

the provision need not be evidenced by the signature of the party to be charged. Garcia 

v. Wayne Homes, LLC, 2nd Dist. Clark No. 2001 CA 53, 2002-Ohio-1884, *8. For these 

reasons, we reject Appellees’ argument. 

{¶22} The trial court first found the arbitration provision violated public policy 

because it circumvents R.C. 4707.32(B) and R.C. 4707.261, which provide professional 

standards for auctioneers and a statutory right of action in favor of any person harmed by 

violation of the professional standards. The court found enforcement of the arbitration 

provision would deprive Appellees of their statutory cause of action. We disagree. 

{¶23} A refusal to enforce a contract on the grounds of public policy is 

distinguished from a finding of unconscionability. Eagle v. Fred Martin Motor Co., 9th Dist. 

No. 21522, 157 Ohio App.3d 150, 2004-Ohio-829, 809 N.E.2d 1161, ¶ 63. Rather than 
Stark County, Case No. 2018CA00108 9 

focusing on the relationship between the parties and the effect of the agreement upon 

them, public policy analysis requires the court to consider the impact of such 

arrangements upon society as a whole. Id. 

{¶24} R.C. 4707.32(B) states in pertinent part: 

A person who asserts that the person has been aggrieved by the 

actions of both an auction firm and a licensed auctioneer related to an 

auction that resulted in actual and direct losses to the aggrieved person 

may file a cause of action with a court of competent jurisdiction

claiming that a violation of this chapter or rules adopted under it resulted in 

the actual and direct losses. 

{¶25} Chapter 1345 of the Ohio Revised Code, the Consumer Sales Practices 

Act, is a remedial statute designed to provide remedies to protect consumers. Similarly, 

R.C. 4707.23(B) is a remedial statute designed to protect anyone aggrieved by the 

actions of an auctioneer or auction firm. In finding statutory claims under the Consumer 

Sales Practices Act may be arbitrated, the Court of Appeals for the Second District held 

as follows: 

It is well settled that statutory claims may be the subject of an 

arbitration agreement. The Supreme Court has stated that “[h]aving made 

the bargain to arbitrate, the party should be held to it unless [the legislature] 

itself has evidenced an intention to preclude a waiver of judicial remedies 
Stark County, Case No. 2018CA00108 10 

for the statutory rights at issue.” Moreover, “so long as the prospective 

litigant effectively may vindicate his or her statutory cause of action in the 

arbitral forum, the statute will continue to serve both its remedial and 

deterrent function.” 

Nothing in R.C. Chapter 1345 reflects a policy that claims falling 

under it be enforced in court and not in arbitration or suggests that parties 

to a consumer transaction covered by the CSPA cannot agree to arbitrate 

such matters. Ohio courts have uniformly held that parties to a consumer 

transaction covered by the CSPA can agree to arbitrate such matters and 

that arbitration does not deprive the complainant of any remedies available 

under CSPA claims. Because Appellants are able to vindicate their statutory 

cause of action in the arbitral forum, the statute retains its deterrent effect. 

In the instant case, the parties bound themselves to settle any dispute 

arising from the contract through arbitration and did not except CSPA 

claims. Therefore, Appellants' CSPA claims are subject to arbitration per 

the parties' agreement. 

{¶26} Garcia, supra, *14, citing Parsley v. Terminix International Company, L.P.

(S.D. Ohio Sept. 15, 1998), Western Division App. No. C–3–97–394, unreported; Gilmer 

v. Interstate/Johnson Lane Corp., 500 U.S. 20, 26, 111 S.Ct. 1647, 114 L.Ed.2d 26; 

Vincent v. Neyer, 139 Ohio App.3d 848, 851, 745 N.E.2d 1127 (2000); Smith v. Whitlatch 

& Co., 137 Ohio App.3d 682, 685, 739 N.E.2d 857 (2000); Karamol v. Continental Estates, 
Stark County, Case No. 2018CA00108 11 

Inc., Wood App. No. WD–00–012, unreported (September 22, 2000); Stehli v. Action 

Custom Homes, Inc., Geauga App. No. 98–G–2198, unreported (Sept. 24, 1999). 

{¶27} R.C. 4707.32(B) uses the permissive “may” file an action in court, not the 

mandatory “shall.” Nothing in the statute mandates a claim brought pursuant to this 

section be brought exclusively before the court. Rather, as in the Consumer Sales 

Practices arena, the parties may agree to arbitrate matters governed by Revised Code 

Chapter 4707. 

{¶28} We further find the arbitration clause does not preclude the Weinfeld parties 

from recovering damages allowed by R.C. 4707.32(B). R.C. 4707.32(B), as set forth 

above, allows for the recovery of actual and direct losses. While the arbitration clause 

herein precludes recovery of incidental, consequential or punitive damages, nothing in 

the arbitration agreement precludes recovery of damages for actual and direct losses, as 

allowed by statute. 

{¶29} The court also found the arbitration provision violated public policy because 

it circumvented Appellees’ rights pursuant to R.C. 4707.261, which provides: 

A person who obtains a final judgment in a court of competent 

jurisdiction against a person licensed under this chapter, on the grounds of 

conduct by the licensee that is described in section 4707.15 of the Revised 

Code or that otherwise violates this chapter or rules adopted under it and 

that is associated with an act or transaction that only a licensee lawfully may 

perform, may file a verified application in a court of common pleas for an 

order directing payment from the auction recovery fund. The application 
Stark County, Case No. 2018CA00108 12 

shall be accompanied by the judgment entry and may seek payment in an 

amount that is equal to the portion of the judgment that remains unpaid. 

The application shall specify the nature of the act or transaction on 

which the underlying judgment was based, the activities of the applicant in 

pursuit of remedies available under the law for the collection of judgments, 

and the actual and direct losses sustained by the applicant. The applicant 

shall attach to the application a copy of each pleading and order in the 

underlying court action. In addition, the application shall include proof of the 

applicant's actual and direct loss. 

Whenever possible, the court shall require all applicants and 

prospective applicants whose claims to the fund arose from an underlying 

judgment against the same licensee to be joined in one action under this 

section so that the rights of all applicants may be equitably adjudicated and 

settled. 

{¶30} R.C. 2711.09 allows a party to confirm an arbitration award in a court of 

common pleas, thus reducing the award to judgment. We find such procedure is not in 

conflict with R.C. 4707.261 nor otherwise inconsistent with its availability to either party 

following confirmation of the arbitration award. The judgment has the same effect as a 

judgment in an action, and may be enforced as if rendered in an action in the court in 

which it is entered. R.C. 2711.14. Therefore, a party who has an arbitration award 

confirmed and reduced to judgment may participate in the auction recovery fund pursuant 

to R.C. 4707.261 in the same manner as a party who obtained a judgment in court. We 
Stark County, Case No. 2018CA00108 13 

find the arbitration provision in this case does not violate public policy by circumventing 

Appellees’ rights pursuant to R.C. 4707.261. 

{¶31} The trial court also found the arbitration provision violates public policy 

because “enforcing the arbitration provision would equate to a waiver of Defendants’ 

liability for any breach of fiduciary duties.” Again, we disagree. 

{¶32} The arbitration clause provides in pertinent part, “In the event a dispute 

arises concerning this contract and/or the performance of Owner(s) or 

Auctioneer/Broker arising out of or in any way related to this contract or any of 

their acts or performances in connection therewith, the dispute shall be submitted to 

binding arbitration” (emphasis added). Nothing in this clause suggests the Weinfeld 

parties’ claim of breach of fiduciary duty could not be submitted to the arbitrator, as the 

arbitration applies to all disputes concerning the performance of the Chartwell parties in 

any way related to the contract. (See, generally, Internatl. Culture & Trade Complex, Inc. 

v. Drenik, 10th Dist. Franklin No. 13AP-596, 2014-Ohio-713, in which claims of breach of 

fiduciary duty were submitted to arbitration.) 

{¶33} We find the court erred in denying a stay of the proceedings pending 

arbitration on the basis the arbitration provision violated public policy. The assignment of 

error is sustained. 

 
Stark County, Case No. 2018CA00108 14 

The judgment of the Stark County Common Pleas Court is reversed and this cause is 

remanded for further proceedings according to law, consistent with this opinion. 

By: Hoffman, P.J. 

Delaney, J. and 

Wise, Earle, J. concur