PREMIER HOMES, INC., ET AL. Plaintiffs
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
from the Court of Common Pleas, Case No. 2016CV00019
Cross-Claim Defendants-Appellants MICHAEL S. GRUBER JASON N.
BING KARL H. SCHNEIDER.
Cross-Claim Plaintiffs-Appellees SCOTT M. ZURAKOWSKI JOSEPH
Patricia A. Delaney, P.J. Hon. Craig R. Baldwin, J. Hon.
Earle E. Wise, Jr., J.
1} Defendants-Cross-Claim Defendants-Appellants, Hanna
Commercial, LLC, Chartwell Auctions, LLC, Joel D. Dutton, and
Jared E. Dutton, along with Third-Party Defendant-Appellant
Jack C. Davis, appeal the June 6, 2017 judgment entry of the
Court of Common Pleas of Stark County, Ohio, denying their
motions to stay the claims against them pending arbitration.
Defendants-Cross-Claim Plaintiffs-Third Party
Plaintiffs-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.
AND PROCEDURAL HISTORY
2} On November 11, 2015, appellants and appellees entered
into an auction agreement whereby appellees hired appellants
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 to plaintiffs, Premier Homes, Inc., Johannes Schlabach,
and Rebecca Gingerich, and the banquet center was sold to
another party. This other party did not go through with the
purchase of the banquet center. As a result, appellants
re-auctioned and resold both properties to Leo and Carol
Soehnlen, even though the home had already been purchased by
plaintiffs. A dispute arose over the true owners of the
3} On January 5, 2016, plaintiffs filed a complaint against
several of the appellants and appellees seeking specific
performance. Amended complaints were filed on April 14, and
June 6, 2016, to include all of the named appellants and
appellees. Plaintiffs asserted claims for specific
performance or in the alternative, breach of contract, or in
the alternative, promissory estoppel, negligent
misrepresentation, violations of R.C. Chapter 4707 governing
auctioneers, and intentional interference with contractual or
prospective contractual relationships.
4} On February 8, 2016, appellees filed a cross-claim against
appellants for indemnification and/or contribution (except
for Mr. Davis).
5} On April 27, 2016, appellants 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).
6} On May 16, 2016, appellees filed an amended cross-claim
against appellants, 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, appellees filed a
third-party complaint against Mr. Davis for the identical
claims, and a third-party complaint against the Soehnlens for
7} On May 23, 2016, 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 appellants' motion to stay
appellees' cross-claim pending arbitration.
8} On June 20, 2016, the Soehnlens filed a counterclaim
against appellees alleging specific performance, breach of
contract, abuse of process, frivolous complaint, and
respondeat superior. Also, the Soehnlens filed a cross-claim
against plaintiffs alleging statute of frauds, abuse of