As Introduced

129th General Assembly
Regular Session
2011-2012
S. B. No. 256


Senator Coley 

Cosponsors: Senators Seitz, LaRose, Schaffer, Jones, Patton 



A BILL
To amend section 1345.09 and to enact section 1
1345.092 of the Revised Code to allow suppliers 2
and consumers to enter into a Right to Cure 3
agreement.4


BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

       Section 1. That section 1345.09 be amended and section 5
1345.092 of the Revised Code be enacted to read as follows:6

       Sec. 1345.09.  For a violation of Chapter 1345. of the 7
Revised Code, a consumer has a cause of action and is entitled to 8
relief as follows:9

       (A) Where the violation was an act prohibited by section 10
1345.02, 1345.03, or 1345.031 of the Revised Code, the consumer 11
may, in an individual action, rescind the transaction or recover 12
the consumer's actual economic damages plus an amount not 13
exceeding five thousand dollars in noneconomic damages.14

       (B) Where the violation was an act or practice declared to be 15
deceptive or unconscionable by rule adopted under division (B)(2) 16
of section 1345.05 of the Revised Code before the consumer 17
transaction on which the action is based, or an act or practice 18
determined by a court of this state to violate section 1345.02, 19
1345.03, or 1345.031 of the Revised Code and committed after the 20
decision containing the determination has been made available for 21
public inspection under division (A)(3) of section 1345.05 of the 22
Revised Code, the consumer may rescind the transaction or recover, 23
but not in a class action, three times the amount of the 24
consumer's actual economic damages or two hundred dollars, 25
whichever is greater, plus an amount not exceeding five thousand 26
dollars in noneconomic damages or recover damages or other 27
appropriate relief in a class action under Civil Rule 23, as 28
amended.29

       (C)(1) Except as otherwise provided in division (C)(2) of 30
this section, in any action for rescission, revocation of the 31
consumer transaction must occur within a reasonable time after the 32
consumer discovers or should have discovered the ground for it and 33
before any substantial change in condition of the subject of the 34
consumer transaction.35

       (2) If a consumer transaction between a loan officer, 36
mortgage broker, or nonbank mortgage lender and a customer is in 37
connection with a residential mortgage, revocation of the consumer 38
transaction in an action for rescission is only available to a 39
consumer in an individual action, and shall occur for no reason 40
other than one or more of the reasons set forth in the "Truth in 41
Lending Act," 82 Stat. 146 (1968), 15 U.S.C. 1635, not later than 42
the time limit within which the right of rescission under section 43
125(f) of the "Truth in Lending Act" expires.44

       (D) Any consumer may seek a declaratory judgment, an 45
injunction, or other appropriate relief against an act or practice 46
that violates this chapter.47

       (E) When a consumer commences an individual action for a 48
declaratory judgment or an injunction or a class action under this 49
section, the clerk of court shall immediately mail a copy of the 50
complaint to the attorney general. Upon timely application, the 51
attorney general may be permitted to intervene in any private 52
action or appeal pending under this section. When a judgment under 53
this section becomes final, the clerk of court shall mail a copy 54
of the judgment including supporting opinions to the attorney 55
general for inclusion in the public file maintained under division 56
(A)(3) of section 1345.05 of the Revised Code.57

       (F) The court may award to the prevailing party a reasonable 58
attorney's fee limited to the work reasonably performed and 59
limited pursuant to section 1345.092 of the Revised Code, if 60
either of the following apply:61

       (1) The consumer complaining of the act or practice that 62
violated this chapter has brought or maintained an action that is 63
groundless, and the consumer filed or maintained the action in bad 64
faith;65

       (2) The supplier has knowingly committed an act or practice 66
that violates this chapter.67

       (G) As used in this section, "actual economic damages" means 68
damages for direct, incidental, or consequential pecuniary losses 69
resulting from a violation of Chapter 1345. of the Revised Code 70
and does not include damages for noneconomic loss as defined in 71
section 2315.18 of the Revised Code.72

       (H) Nothing in this section shall preclude a consumer from 73
also proceeding with a cause of action under any other theory of 74
law.75

       Sec. 1345.092. (A) Not later than thirty days after service 76
of process is completed upon a supplier by a consumer in any 77
action seeking a private remedy pursuant to section 1345.09 of the 78
Revised Code, the supplier may deliver a cure offer to the 79
consumer, or if the consumer is represented by an attorney, to the 80
consumer's attorney. The supplier shall file a copy of the cure 81
offer with the court in which the action was commenced.82

       (B) A consumer shall have thirty days after the date the 83
consumer or the consumer's attorney receives a cure offer from a 84
supplier to notify the supplier, or if the supplier is represented 85
by an attorney, the supplier's attorney, of the consumer's 86
acceptance or rejection of the cure offer. The consumer shall file 87
the notice of acceptance or rejection with the court in which the 88
action was commenced and serve the notice to the supplier. The 89
notice shall be deemed effective when it is filed with the court. 90
The failure of a consumer to file a notice of acceptance or 91
rejection of the supplier's cure offer within thirty days shall be 92
deemed a rejection of the cure offer by the consumer.93

        (C) When by rule, notice, or order of court a motion or 94
pleading is required to be filed by any party during the time 95
periods described in divisions (A) and (B) of this section, the 96
court shall extend the time period for filing the motion or 97
pleading to allow both parties adequate time to comply with this 98
section.99

        (D) A cure offer must include both of the following:100

        (1) Language that clearly explains the resolution being 101
offered by the supplier consisting of the following separate 102
components:103

        (a) A supplier's remedy to resolve alleged violations of this 104
chapter that includes one or more things of value, such as cash, 105
goods, or services. The supplier's remedy shall include an 106
itemization of the fair market value of cash, goods, and services 107
included in the remedy.108

        (b) Reasonable attorney's fees that consist of legal fees 109
necessary or reasonably related to the filing of the initial 110
complaint, not to exceed one thousand five hundred dollars.111

        (2) A prominent notice that clearly and conspicuously 112
contains the following disclosure in substantially the following 113
form:114

        NOTICE: THIS LETTER INCLUDES A "CURE OFFER" THAT IS BEING 115
OFFERED TO SETTLE ALL ALLEGED VIOLATIONS OF CHAPTER 1345. OF THE 116
REVISED CODE RAISED BY YOUR WRITTEN COMPLAINT. THE CURE OFFER 117
INCLUDES BOTH A "SUPPLIER'S REMEDY" TO SOLVE THIS DISPUTE AND AN 118
OFFER TO PAY YOUR ATTORNEY'S FEES UP TO $1,500.00. YOU ARE NOT 119
OBLIGATED TO ACCEPT THIS CURE OFFER AND HAVE THE RIGHT TO CONSULT 120
WITH LEGAL COUNSEL BEFORE MAKING YOUR DECISION.121

        YOU MUST NOTIFY THE SUPPLIER WITHIN 30 DAYS OF RECEIPT OF 122
THIS CURE OFFER OF YOUR DECISION TO EITHER ACCEPT OR REJECT THE 123
OFFER BY FILING A RESPONSE WITH THE COURT AND SENDING A COPY OF 124
THE RESPONSE TO THE SUPPLIER. IF THE COURT DOES NOT RECEIVE YOUR 125
RESPONSE WITHIN THE REQUIRED TIME, YOUR FAILURE TO RESPOND WILL, 126
BY LAW, BE CONSIDERED REJECTION OF OUR OFFER.127

        REJECTION OF THIS CURE OFFER COULD IMPACT YOUR ABILITY TO 128
COLLECT COURT COSTS AND LEGAL FEES. IF A COURT, JURY, OR 129
ARBITRATOR FINDS IN YOUR FAVOR, BUT DOES NOT AWARD YOU AN AMOUNT 130
MORE THAN THE VALUE OF THE SUPPLIER'S REMEDY, THE SUPPLIER WILL 131
NOT BE RESPONSIBLE FOR TREBLE DAMAGES, ATTORNEY'S FEES, OR ANY 132
COURT COSTS YOU INCUR AFTER THE DATE THIS CURE OFFER WAS MADE 133
(fill in the date).134

VALUE OF SUPPLIER'S REMEDY = $(fill in the blank) 135

ATTORNEY'S FEES = $(fill in the blank)136

TOTAL VALUE OF CURE OFFER = $(fill in the blank)137

        (E) If the consumer files a notice rejecting the cure offer 138
provided by the supplier, if a cure offer is deemed rejected 139
pursuant to division (B) of this section, or if no cure offer is 140
made to the consumer by the supplier within the time frame set 141
forth in this section, the consumer may proceed with a civil 142
action in accordance with this chapter.143

        (F) If the consumer files a notice accepting a cure offer, 144
the agreed upon resolution must be completed within a reasonable 145
time in accordance with court supervision. The court may at any 146
time, in its discretion, extend any deadlines set forth by rule, 147
statute, or order of the court for filing motions or pleadings, or 148
conducting discovery in order to allow the resolution to be 149
completed.150

        (G) If a judge, jury, or arbitrator awards actual economic 151
damages as defined in section 1345.09 of the Revised Code that are 152
less than the value of a supplier's remedy included in a cure 153
offer made pursuant to this section, the consumer shall not be 154
entitled to any of the following:155

       (1) An award of treble damages;156

       (2) Any court costs incurred by the consumer after the date 157
the consumer or the consumer's attorney receives the cure offer;158

       (3) Any attorney's fees incurred by the consumer after the 159
date the consumer or the consumer's attorney receives the cure 160
offer from the supplier.161

       The comparison of actual economic damages and the supplier's 162
remedy shall not take into consideration statutory treble damages, 163
court costs, or attorney's fees.164

        (H) A cure offer is admissible in a judicial proceeding only 165
if the offer was timely delivered in accordance with this section 166
and only for the limited purpose of determining whether treble 167
damages may be awarded and the amount of court costs and 168
reasonable attorney's fees that may be awarded. A cure offer is 169
not admissible in a court proceeding for any other purpose.170

        (I) As used in this section, "cure offer" means a written 171
offer of one or more things of value, such as cash, goods, or 172
services, that is made by a supplier to a consumer or to the 173
consumer's attorney in response to a consumer's claim of a 174
violation of Chapter 1345. of the Revised Code. A cure offer shall 175
include reasonable legal fees necessary or reasonably related to 176
the filing of the initial complaint of up to one thousand five 177
hundred dollars.178

       (J) This section does not apply to claims for personal injury 179
or death.180

       Section 2. That existing section 1345.09 of the Revised Code 181
is hereby repealed.182