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The Ohio Court of Appeals held that a trial court erred by granting a motion to compel arbitration without a hearing because the party opposing arbitration raised an unconscionability challenge that put the enforceability and validity of the arbitration agreement at issue.
In Bencivenni v. Dietz, No. 88269, 2007 WL 475411 (Ohio Ct. App. Feb. 15, 2007), American Building Inspections (ABI) inspected a home that Kelly and Michael Bencivenni had agreed to buy from Marilyn Dietz. The inspection agreement contained an arbitration clause.
When they discovered problems with the house, the Bencivennis sued Dietz and ABI. ABI filed a motion to compel arbitration. In opposing the motion, the Bencivennis argued that the arbitration agreement was unconscionable and therefore unenforceable. The trial court granted the motion to compel without a hearing.
On appeal, the Bencivennis argued that the trial court erred by granting the motion to compel without conducting a hearing. The Court agreed that a hearing was necessary because the enforceability and validity of the arbitration agreement were at issue. Accordingly, the Court remanded the case with instructions to conduct a hearing.
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