Ohio - Arbitration Clause Can't Take Away Statutory Rights

Arbitration sucks, we've said it before and we'll say it again. Arbitration sucks. 

But whatever you think about it, in Ohio a binding mandatory arbitration clause can not be used to take away a consumer's rights under Ohio's Udap law, the Ohio Consumer Sales Practices Act. Still, more and more arbitration clauses are trying to not only take away a consumer's right to go to court, but to also change the laws they can use.

Ohio's Udap law, the CSPA, makes it illegal for any merchant to do anything that is "unfair or deceptive" (the words in the law) to a consumer. And if they do, then the consumer may be able to recover triple their actual damages, attorney fees, and up to $5,000 in non economic damages for aggravation and inconvenience, etc. Car dealers hate this law.

Its no wonder then that Autos Direct, a Cleveland area internet-based car dealer, was sticking mandatory and binding arbitration clauses in its sales paperwork with consumers. But it went one step further and added a sentence that said "The non-prevailing party shall pay, and the arbitrators shall award the prevailing party's arbitration costs and expenses, including reasonable attorney's fees." Lawyers call that a "loser pays" clause and it means that if you are going to sue the car dealer then you sure better win or they might go after you to make you pay their attorney fees. But that's not what the the law in Ohio says.

In other words, car dealers like Autos Direct not only wanted you to not be able to go into a courtroom where the public can find out what they did to you, but they also didn't want you to be able to use consumer protection laws against them at all. Ah, c'mon, guys, don't you think that's a little too much?

Well the Eighth District Court of Appeals thought so, when it decided Tamara Hedeen v Autos Direct Online, Inc. on Sept 25, 2014, and tossed out their arb clause.

Dayton, Ohio attorney Beth Wells reports that the appellate court ruled that "where a consumer's CSPA (Ohio's Udap law) claim is subject to binding arbitration, limitations on a consumer's right should not be allowed by a private arbitration forum." A couple of pages later in the court decision, the appellate judges threw out the arbitration clause entirely and held that Ms Hedeen now has the right to go to court.

In Hadeen's case, the court noted, she had bought a used 2011 Mercedes online for $28,000 and later discovered that it had sustained over $20,000 in undisclosed damage and over $7,000 of the damage had never been repaired. It's things like that which explain why some car dealers don't want consumers to go to court at all. Hadeen filed her case against the dealership with claims that they had committed unfair and deceptive acts in violation of Ohio's Udap law and Ohio's little-known Motor Vehicle Sales Rule, OAC 109:4-3-109.

A public court, where the public can see what is happening in our Justice system - that's what Justice should be all about. A Big Round of Applause to Attorney Beth Wells on a job well done.

The Law Coach

www.thelawcoach.com

Helping Lawyers Help Clients

Women Lawyers Just Don't Handle Trials The Same

Now, there's nothing wrong with that. It's just a fact. And every man who has tried a case against a woman attorney knows it.

They view things differently. And that gives them a different viewpoint on the witnesses, the evidence, the Jury - simply everything.

And perhaps that difference can be their most distinct advantage in a courtroom.

Learning to use that advantage may be the key.

Photo from http://woman.thenest.com

That's why if you are a woman lawyer you may want to be in New Orleans in September. 360 Advocacy puts together some terrific conferences and Sept 14 to 16 they are gathering some of the best women trial attorneys for a conference for women, taught by women, aimed at maximizing trial skills for women. Frankly, it's a terrific idea.

The CLE conference is promoted as "Trial Skills from the Woman’s Perspective features a faculty of women trial lawyers and trial consultants who will not only teach you all aspects of litigation, but will teach you those skills in ways that make sense to you, have the look and feel that resonate with you, and allow you to use your unique skills and approach to your best advantage."

Although 360 Advocacy typically focuses on topics related to the plaintiff personal injury bar, we have attended similar PI trial skill conferences before and found the trial skills they teach are mostly universal and apply to most areas of law - the focus is often on trial skills and not just a single area of law.

If you can go, it's very likely worth your time and money. And if you aren't aware of the 360 Advocacy group, they have a lot of useful white papers, resources, and useful info.

Ronald Burdge

www.TheLawCoach.com

Helping Lawyers Win

Trial Skills from the Woman’s Perspective features a faculty of women trial lawyers and trial consultants who will not only teach you all aspects of litigation, but will teach you those skills in ways that make sense to you, have the look and feel that resonate with you, and allow you to use your unique skills and approach to your best advantage. - See more at: http://www.360advocacy.com/conference-details/trial-skills-from-the-womans-perspective/#sthash.EqHa5D1w.dpuf

Now YOU Can Follow the CIA

 
The CIA is famous for its secret legal briefs to justify electronic eavesdropping and following of all of the rest of us. Well, it turns out that now you can follow them too.

Although burdened with all of the spying work, the CIA found time to open their own Twitter account on June 11. No doubt before doing so they put a team of their crack agents together on what their first tweet should be.

While we can never know the months of research, meetings, group conferences, and thought that went into it, they did come up with an astounding and insightful first tweet, "We can neither confirm nor deny that this is our first tweet."

Yeah, that took a lot of work. Knowing who it is though, the real question is - if you "follow" them, will they also "follow" you? Be careful out there.

Ron Burdge

www.TheLawCoach.com

Helping Lawyers Help Clients. For More Than 25 Years.

Lack of Good Faith in Mediation Prompts Sanctions

A federal Magistrate Judge in Pennsylvania imposed sanctions against a corporate defendant for failing to mediate in good faith. It's a warning with reading about.

In Grigoryantis v Safety-Kleen Corp., US District Court, WD, PA, Case No. 1:11-cv-00267, on May 28, 2014, Magistrate Judge Kelly found the defendant liable for attorney fees and plaintiff's travel costs because the defendant attended a mediation with no intent to make a settlement offer because discovery had not concluded in the case and it was against their policy to make a settlement offer until discovery was closed.

The court noted that the defendant had opportunities to advise the court of its policy and thereby avoid the mediation scheduled but it failed to do so.

While the plaintiff had complied with the court order to provide a pre-mediation settlement offer to the defendant, the court also noted that the defendant did not comply and did not provide a pre-mediation settlement offer to the plaintiff. Apparently plaintiff's counsel was notified of the defendant's "no offer policy" by the mediator at the mediation itself.

In its 14 page decision the court noted that other courts had imposed sanctions in similar situations.

The moral of the story for all lawyers is simple. Never attend a mediation without authority to actually engage in the mediation process. If your client does not want to settle yet, then the mediation is premature and should be postponed. If you are not in a position to fully advise your client on all things necessary to negotiate, then don't schedule a mediation in the case.

The legal process can be hard on the parties and the lawyers and even, at times, on the court itself. Compounding that with a lack of good faith can result in serious damage to your reputation and your client's interests.

Ron Burdge

www.TheLawCoach.com

Helping Lawyers Win Cases For More Than 25 Years