Can I require customers to sign contracts with binding arbitration clauses in Ohio? What are the requirements?

Here is the response to your query:

Requirements for including binding arbitration clauses in contracts with customers in Ohio

In Ohio, it is possible to include binding arbitration clauses in contracts with customers. However, there are certain requirements that must be met for such clauses to be valid and enforceable.

According to OHRC Section 2711.01, a provision in any written contract to settle by arbitration a controversy that subsequently arises out of the contract, or out of the refusal to perform the whole or any part of the contract, shall be valid, irrevocable, and enforceable, except upon grounds that exist at law or in equity for the revocation of any contract.

However, OHRC Section 2711.23 provides additional requirements for arbitration agreements related to medical, dental, chiropractic, or optometric claims that are entered into prior to a patient receiving any care, diagnosis, or treatment. Such agreements must include or be subject to the following conditions:

• The agreement shall provide that the care, diagnosis, or treatment will be provided whether or not the patient signs the agreement to arbitrate
• The agreement shall provide that the patient, or the patient’s spouse, or the personal representative of the patient’s estate in the event of the patient’s death or incapacity, shall have a right to withdraw the patient’s consent to arbitrate the patient’s claim by notifying the healthcare provider or hospital in writing within thirty days after the patient’s signing of the agreement
• The agreement shall provide that the decision whether or not to sign the agreement is solely a matter for the patient’s determination without any influence
• The agreement shall, if appropriate, provide that its terms constitute a waiver of any right to a trial in court, or a waiver of any right to a trial by jury
• The agreement shall provide that the arbitration expenses shall be divided equally between the parties to the agreement
• Any arbitration panel shall consist of three persons, no more than one of whom shall be a physician or the representative of a hospital
• The arbitration agreement shall be separate from any other agreement, consent, or document
• The agreement shall not be submitted to a patient for approval when the patient’s condition prevents the patient from making a rational decision whether or not to agree
• Filing of a medical, dental, chiropractic, or optometric claim within the thirty days provided for withdrawal of a patient from the arbitration agreement shall be deemed a withdrawal from the agreement
• The agreement shall contain a separately stated notice that clearly informs the patient of the patient’s rights under division (B) of this section.

It is important to note that the above requirements apply specifically to arbitration agreements related to medical, dental, chiropractic, or optometric claims.

Applicability to contracts with customers

As per OHRC Section 2711.01, the requirements for arbitration agreements apply to any written contract. Therefore, the requirements listed in OHRC Section 2711.23 may not be applicable to contracts with customers in other contexts.

Enforcing arbitration agreement

If a party aggrieved by the alleged failure of another to perform under a written agreement for arbitration, they may petition any court of common pleas having jurisdiction of the party so failing to perform for an order directing that the arbitration proceed in the manner provided for in the written agreement. The court shall hear the parties, and, upon being satisfied that the making of the agreement for arbitration or the failure to comply with the agreement is not in issue, the court shall make an order directing the parties to proceed to arbitration in accordance with the agreement ^[1.2].

Conclusion

In summary, it is possible to include binding arbitration clauses in contracts with customers in Ohio. However, specific requirements must be met for such clauses to be valid and enforceable. It is important to consult with legal counsel to ensure that any arbitration agreement is in compliance with Ohio law.

Source(s):

• [1.2] Enforcing arbitration agreement.

Jurisdiction

Ohio

• General