Enforceability Status
Class action waivers in Ohio new construction contracts are likely enforceable when included in arbitration agreements. The FAA preempts state-law challenges under AT&T Mobility LLC v. Concepcion (2011). Ohio courts have generally upheld arbitration provisions in consumer contracts, and the Ohio Consumer Sales Practices Act provides individual remedies.
Legal Analysis
The Federal Arbitration Act (9 U.S.C. §§ 1-16) establishes a strong federal policy favoring arbitration agreements, including class action waivers. Under AT&T Mobility LLC v. Concepcion, 563 U.S. 333 (2011), the FAA preempts state rules conditioning arbitration on the availability of class-wide procedures. Ohio courts follow this federal precedent.
Ohio's arbitration law, codified in Ohio Rev. Code §§ 2711.01-2711.24, provides a statutory framework for enforcing arbitration agreements. Ohio courts have upheld arbitration provisions in consumer contracts and have not carved out a specific exception for class action waivers in the residential construction context.
Ohio applies unconscionability analysis under Ohio Rev. Code § 1302.15 (UCC) and common law principles. Both procedural and substantive unconscionability must be demonstrated. Ohio courts have recognized that standard-form contracts are common in the residential construction industry and have generally upheld class action waivers post-Concepcion.
The Ohio Consumer Sales Practices Act (Ohio Rev. Code § 1345.01 et seq.) provides individual remedies for unfair or deceptive acts in consumer transactions. The implied warranty of habitability recognized under Ohio common law provides additional individual protection. Both remedies remain available to buyers regardless of any class action waiver.
Relevant Ohio Law
Establishes a strong federal policy favoring arbitration agreements and preempts state laws that single out arbitration provisions for disfavored treatment.
Governs arbitration agreements in Ohio and provides for the enforcement of written arbitration agreements.
Prohibits unfair or deceptive acts in consumer transactions and provides a private right of action for consumers.
Builders in Ohio Using This Clause
What Ohio Buyers Should Know
- Individual claims under the Consumer Sales Practices Act Ohio's Consumer Sales Practices Act provides individual remedies for deceptive practices in home sales that are not affected by a class action waiver.
- Implied warranty of habitability remains available Ohio courts recognize an implied warranty of habitability for new construction, providing individual protection regardless of any class action waiver.
- Maintain detailed documentation Keep thorough records of all construction defects, warranty requests, inspection reports, and communications with the builder.
- Consult an Ohio real estate attorney An attorney can evaluate the class action waiver language in your contract and advise on enforceability and your individual rights.