STAND UP FOR YOUR RIGHTS - HB 275 IS WRONG FOR OHIOMany clients and potential clients express how disenfranchised they feel when they have been ripped off by a business. The vast majority have tried to work it out themselves, but the business has refused to deal with them fairly. Left with no other option, they turn to a lawyer for help. When I have to tell a potential client that while, yes, they have been treated deceptively, the law does not provide them with a claim for relief, they invariably ask “why” and what they can do to change that? Now is your chance to make your voice heard before more bad law is enacted in Ohio. The bill is before Governor Kasich. Contact the Governor today and urge him to VETO HB 275. If you or your loved ones are Ohio citizens and you have been ripped off by a business, whether purchasing a vehicle, having repairs made to your home, or in the course of any other consumer transaction, a proposed new law may make the hurdle to balance the playing field between you and big business insurmountable. On June 21, 2011 Ohio House Bill 275 was introduced to the Ohio General Assembly. If passed, the proposed changes would dismantle the nearly forty year old Ohio Consumer Sales Practices Act (CSPA or the Act) by inclusion of a “right to cure.” The bill’s proposals undermine the deterrent and remedial purpose of the Act, and if enacted would preclude access to justice for many consumers. This bill is backed by the Auto Dealers’ Association, the Chamber of Commerce, and The Ohio Manufacturers’ Association, and other business organizations. There are thirteen other states and territories that have cure provisions built into their respective state UDAP laws. The proposals in HB 275 would take Ohio’s UDAP law from middle of the road, to among the very worst in the nation. If enacted, Ohio would have the only right to cure provision in the nation that is triggered only after a lawsuit is filed. Additionally, it would have the only cure provision that also places a low arbitrary cap on the consumer’s ability to recover her reasonable attorney’s fees. The bill’s proponents contend that the right to cure will speed up the resolution of CSPA lawsuits. But in reality it will make it harder for consumers to fight unscrupulous companies. The bill’s proposal would allow a business to proffer a cure offer to the consumer, which is triggered within the first thirty days after service of the lawsuit. The “cure” offer includes the value of the consumer’s damages, and a maximum of $2,500.00 for attorney’s fees. This cure does not include remedies otherwise available under the CSPA, including equitable rights, such as rescission, declaratory and injunctive relief; non-economic damages; treble damages; or reasonable attorney’s fees. Under HB 275, if the consumer does not receive an award for actual damages that exceeds the value of the supplier’s cure offer, that consumer cannot recover treble damages, nor attorney’s fees and court costs arising after the date of the cure offer. The bill’s supporters assert that the right to cure would prevent the CSPA from being used to force small businesses to pay exorbitant settlements on meritless consumer claims. This position lacks a clear understanding of the Act, which already includes mechanisms to avoid such abuse. The Act requires that treble damages only be awarded in instances of a violation so declared and published for public inspection by the Ohio Attorney General, or by court order. Likewise, a checks and balance system is incorporated into the Act allowing recovery of attorney’s fees only as deemed reasonable by the court. And finally, there is also provision in the Act allowing the supplier to recover its attorneys’ fees if a consumer advances or maintains a groundless claim under the CSPA. As Ohio’s suppliers and consumers already have the right to cure or settle their disputes, HB 275 shifts all of the risks upon the consumer. This bill will also hurt honest businesses, which will be placed at a competitive disadvantage in an already fierce marketplace. The voice of Ohioans can make the difference of whether you and your family will have peace of mind entering a consumer transaction in the state of Ohio. Talking Points OTHER LINKS AND STORIES ABOUT THIS BILLOhioans should be wary of plan to overhaul state's consumer law: Plain Dealing Follow HB 275 Proposed Deconstruction of Ohio's UDAP Law - a National Trend? |
