Has Dealing In Consumer Transactions Become Riskier In Ohio?

What happens when a $16,400 truck turns into a $470,000 verdict? You catch the eye of one governor, incur the ire of a second, and in the process create a constitutional law question worthy of any bar examination. Moreover, if you sell to consumers, the ability to assess your litigation risks virtually disappears.

This is exactly the situation Ohio businesses now face because the extent to which a consumer may recover noneconomic damages under Ohio's Consumer Sales Practices Act ("CSPA") remains unresolved. The CSPA exists to provide consumers with legal recourse when they feel they are victims of unfair or deceptive consumer sales practices. In November of last year, the Ohio Supreme Court, in Whitaker v. M.T. Automotive, Inc., allowed noneconomic damages to be awarded so long as the consumer proved a CSPA violation. The end result was that a $16,400 truck purchased by Mr. Whitaker netted a $470,000 verdict, $315,000 of which related to noneconomic damages. But more on that