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Sub. H. B. No. 275 As Enrolled
(129th General Assembly)
(Substitute House Bill Number 275)
To amend section 1345.09 and to enact section
1345.092 of the Revised Code to allow suppliers
and consumers to enter into a Right to Cure
Be it enacted by the General Assembly of the State of Ohio:
SECTION 1. That section 1345.09 be amended and section
1345.092 of the Revised Code be enacted to read as follows:
Sec. 1345.09. For a violation of Chapter 1345. of the
Revised Code, a consumer has a cause of action and is entitled to
relief as follows:
(A) Where the violation was an act prohibited by section
1345.02, 1345.03, or 1345.031 of the Revised Code, the consumer
may, in an individual action, rescind the transaction or recover
the consumer's actual economic damages plus an amount not
exceeding five thousand dollars in noneconomic damages.
(B) Where the violation was an act or practice declared to be
deceptive or unconscionable by rule adopted under division (B)(2)
of section 1345.05 of the Revised Code before the consumer
transaction on which the action is based, or an act or practice
determined by a court of this state to violate section 1345.02,
1345.03, or 1345.031 of the Revised Code and committed after the
decision containing the determination has been made available for
public inspection under division (A)(3) of section 1345.05 of the
Revised Code, the consumer may rescind the transaction or recover,
but not in a class action, three times the amount of the
consumer's actual economic damages or two hundred dollars,
whichever is greater, plus an amount not exceeding five thousand
dollars in noneconomic damages or recover damages or other
appropriate relief in a class action under Civil Rule 23, as
(C)(1) Except as otherwise provided in division (C)(2) of
this section, in any action for rescission, revocation of the
consumer transaction must occur within a reasonable time after the
consumer discovers or should have discovered the ground for it and
before any substantial change in condition of the subject of the
(2) If a consumer transaction between a loan officer,
mortgage broker, or nonbank mortgage lender and a customer is in
connection with a residential mortgage, revocation of the consumer
transaction in an action for rescission is only available to a
consumer in an individual action, and shall occur for no reason
other than one or more of the reasons set forth in the "Truth in
Lending Act," 82 Stat. 146 (1968), 15 U.S.C. 1635, not later than
the time limit within which the right of rescission under section
125(f) of the "Truth in Lending Act" expires.
(D) Any consumer may seek a declaratory judgment, an
injunction, or other appropriate relief against an act or practice
that violates this chapter.
(E) When a consumer commences an individual action for a
declaratory judgment or an injunction or a class action under this
section, the clerk of court shall immediately mail a copy of the
complaint to the attorney general. Upon timely application, the
attorney general may be permitted to intervene in any private
action or appeal pending under this section. When a judgment under
this section becomes final, the clerk of court shall mail a copy
of the judgment including supporting opinions to the attorney
general for inclusion in the public file maintained under division
(A)(3) of section 1345.05 of the Revised Code.
(F) The court may award to the prevailing party a reasonable
attorney's fee limited to the work reasonably performed and
limited pursuant to section 1345.092 of the Revised Code, if
either of the following apply:
(1) The consumer complaining of the act or practice that
violated this chapter has brought or maintained an action that is
groundless, and the consumer filed or maintained the action in bad
(2) The supplier has knowingly committed an act or practice
that violates this chapter.
(G) As used in this section, "actual economic damages" means
damages for direct, incidental, or consequential pecuniary losses
resulting from a violation of Chapter 1345. of the Revised Code
and does not include damages for noneconomic loss as defined in
section 2315.18 of the Revised Code.
(H) Nothing in this section shall preclude a consumer from
also proceeding with a cause of action under any other theory of
Sec. 1345.092. (A) Not later than thirty days after service
of process is completed upon a supplier by a consumer in any
action seeking a private remedy pursuant to section 1345.09 of the
Revised Code, the supplier may deliver a cure offer to the
consumer, or if the consumer is represented by an attorney, to the
consumer's attorney. The supplier shall send a cure offer by
certified mail, return receipt requested, to the consumer, or if
the consumer is represented by an attorney, to the consumer's
attorney. The supplier shall file a copy of the cure offer with
the court in which the action was commenced.
(B) A consumer shall have thirty days after the date the
consumer or the consumer's attorney receives a cure offer from a
supplier to notify the supplier, or if the supplier is represented
by an attorney, the supplier's attorney, of the consumer's
acceptance or rejection of the cure offer. The consumer shall file
the notice of acceptance or rejection with the court in which the
action was commenced and serve the notice to the supplier. The
notice shall be deemed effective when it is filed with the court.
The failure of a consumer to file a notice of acceptance or
rejection of the supplier's cure offer within thirty days after
the date of receipt of the cure offer shall be deemed a rejection
of the cure offer by the consumer.
(C) When by rule, notice, or order of court a motion or
pleading is required to be filed by any party during the time
periods described in divisions (A) and (B) of this section, the
court may extend the time period for filing the motion or pleading
to allow both parties adequate time to comply with this section.
(D) A cure offer shall include both of the following:
(1) Language that clearly explains the resolution being
offered by the supplier consisting of the following separate
(a) A supplier's remedy that consists solely of monetary
compensation to resolve alleged violations of this chapter;
(b) Reasonable attorney's fees that consist of legal fees
necessary or reasonably related to the filing of the initial
complaint, not to exceed two thousand five hundred dollars;
(c) Court costs incurred by the consumer that are related to
the filing of the initial complaint.
(2) A prominent notice that clearly and conspicuously
contains the following disclosure in substantially the following
NOTICE: THIS LETTER INCLUDES A "CURE OFFER" THAT IS BEING
OFFERED TO SETTLE ALL ALLEGED VIOLATIONS OF CHAPTER 1345. OF THE
REVISED CODE RAISED BY YOUR WRITTEN COMPLAINT. THE CURE OFFER
INCLUDES BOTH A "SUPPLIER'S REMEDY" TO SOLVE THIS DISPUTE AND AN
OFFER TO PAY YOUR ATTORNEY'S FEES UP TO $2,500.00 AND YOUR COURT
COSTS IN FILING THE COMPLAINT. YOU ARE NOT OBLIGATED TO ACCEPT
THIS CURE OFFER AND HAVE THE RIGHT TO CONSULT WITH LEGAL COUNSEL
BEFORE MAKING YOUR DECISION.
YOU MUST NOTIFY THE SUPPLIER WITHIN 30 DAYS OF RECEIPT OF
THIS CURE OFFER OF YOUR DECISION TO EITHER ACCEPT OR REJECT THE
OFFER BY FILING A RESPONSE WITH THE COURT AND SENDING A COPY OF
THE RESPONSE TO THE SUPPLIER. IF THE COURT DOES NOT RECEIVE YOUR
RESPONSE WITHIN THE REQUIRED TIME, YOUR FAILURE TO RESPOND WILL,
BY LAW, BE CONSIDERED REJECTION OF OUR OFFER.
REJECTION OF THIS CURE OFFER COULD IMPACT YOUR ABILITY TO
COLLECT COURT COSTS AND LEGAL FEES. IF A COURT, JURY, OR
ARBITRATOR FINDS IN YOUR FAVOR, BUT DOES NOT AWARD YOU AN AMOUNT
MORE THAN THE VALUE OF THE SUPPLIER'S REMEDY, THE SUPPLIER WILL
NOT BE RESPONSIBLE FOR TREBLE DAMAGES, ATTORNEY'S FEES, OR ANY
COURT COSTS YOU INCUR AFTER THE DATE THIS CURE OFFER WAS MADE
(fill in the date).
VALUE OF SUPPLIER'S REMEDY = $(fill in the blank)
THE SELLER ALSO AGREES TO PAY YOUR ATTORNEY'S FEES, UP TO
$2,500.00, THAT ARE NECESSARY OR REASONABLY RELATED TO THE FILING
OF YOUR INITIAL CLAIM, AS WELL AS YOUR COURT COSTS.
(E) If the consumer files a notice rejecting the cure offer
provided by the supplier, if a cure offer is deemed rejected
pursuant to division (B) of this section, or if no cure offer is
made to the consumer by the supplier within the time frame set
forth in this section, the consumer may proceed with a civil
action in accordance with this chapter.
(F) If the consumer files a notice accepting a cure offer,
then both of the following shall apply:
(1)(a) The consumer shall, upon accepting the cure offer,
request an amount, up to two thousand five hundred dollars, from
the supplier to pay attorney's fees and an amount to pay court
costs. The consumer shall provide to the supplier bills and other
documents evidencing these amounts.
(b) If the supplier finds the requested amounts to be
reasonable, then the supplier shall pay the consumer the requested
amounts along with the offered remedy upon the resolution of the
(c) If the supplier finds the requested amounts to be
unreasonable, then the supplier shall, within ten days of the
consumer accepting the cure offer, seek a ruling from the court
appointed to the case. The court shall review the documentation
provided by the consumer evidencing the requested amounts and
shall award to the consumer attorney's fees, up to two thousand
five hundred dollars, that are necessary or reasonably related to
the filing of the claim and court costs.
(2) The agreed upon resolution shall be completed and any
court-ordered attorney's fees and court costs shall be paid within
a reasonable time in accordance with court supervision. The court
may at any time, in its discretion, extend any deadlines set forth
by rule, statute, or order of the court for filing motions or
pleadings, or conducting discovery in order to allow the
resolution to be completed.
(G) If a judge, jury, or arbitrator awards actual economic
damages as defined in section 1345.09 of the Revised Code that are
not greater than the value of a supplier's remedy included in a
cure offer made pursuant to this section, the consumer shall not
be entitled to any of the following:
(1) An award of treble damages;
(2) Any court costs incurred by the consumer after the date
the consumer or the consumer's attorney receives the cure offer;
(3) Any attorney's fees incurred by the consumer after the
date the consumer or the consumer's attorney receives the cure
offer from the supplier.
The comparison of actual economic damages and the supplier's
remedy shall not take into consideration statutory treble damages,
court costs, or attorney's fees.
(H) A cure offer is not admissible as evidence in a jury
trial of the consumer's action seeking a private remedy pursuant
to section 1345.09 of the Revised Code as described in division
(A) of this section. After a jury renders its verdict in that
action or if the action is tried to a judge, the judge shall
consider the cure offer only if the offer was timely delivered in
accordance with this section and only for the limited purpose of
determining whether treble damages may be awarded and the amount
of court costs and reasonable attorney's fees that may be awarded.
A cure offer is not admissible in a court proceeding for any other
(I) As used in this section, "cure offer" means a written
offer of monetary compensation that is made by a supplier to a
consumer or to the consumer's attorney in response to a consumer's
claim of a violation of Chapter 1345. of the Revised Code. A cure
offer shall include reasonable legal fees necessary or reasonably
related to the filing of the initial complaint of up to two
thousand five hundred dollars and court costs incurred by the
consumer and related to the filing of the initial complaint.
(J) This section does not apply to claims for personal injury
SECTION 2. That existing section 1345.09 of the Revised Code
is hereby repealed.