Ohio Arbitration Case Returns to Trial
Tuesday, October, 6, 2015
The case over a used Chevy Blazer spot-delivered by Ganley Chevrolet to Jeffrey and Stacy Felix has been in progress for more than 14 years because of the arbitration provision contained the purchase documents. Most recently, the Ohio Supreme Court tossed out class certification and the class award.
The Felixes case began in March 2001 when they purchased a 2000 Chevy Blazer from Ganley. The couple claims the dealership promised 0% financing through GMAC. It fell through and the couple claim the dealership then offered them 1.9% financing. GMAC also rejected that offer and the dealership told them they could provide 9.44% financing through a bank. The couple refused the deal, but kept the vehicle and put the payment funds in escrow.
They then brought a lawsuit against the dealership, claiming unfair consumer practices, two years later amending their suit to request class action. They cited the arbitration provision in their purchase contract with Ganley and called what the dealership did unconscionable and a violation of Ohio’s consumer protection law.
Ganley tried to force the case into arbitration, which was originally unsuccessful and the court ordered the dealership to pay all of the customers named in the class action $200. After multiple appeals, the Ohio Supreme Court has tossed out the class action and award and stated there could be no class action because the Felixes never proved that everyone named in the class action had been harmed. The Supreme Court did find the arbitration provision invalid and unenforceable. The case is set to head back to trial court.