Conflicting Cases Create Confusion for Home Contractors

If you are a home remodeling contractor in Ohio must you comply with the Ohio Home Construction Services Suppliers Act? The answer to that question depends on what the word “construction” means.

Unfortunately because of conflicting decisions by two different Ohio Courts, there is no clear answer to this question. One Ohio Court has concluded the term “construction” only pertains to the creation of something new, not the repair or improvement of something already existing. Beder v. Cerha Kitchen & Bath Design Studio, LLC, 11th Dist. Geauga No. 2022-G-0008, 2022-Ohio-4463.

A second Ohio court has concluded that the term “construction” under the statute means any type of improvement, regardless of whether it is new construction or remodeling. Mazola Frank, v. Barrett Wise LLC., 2021 WL 1062390 (Ohio Com.Pl.). As a result of this confusion there is uncertainty as to whether a home remodeling contractor must comply with the requirements of the Home Construction Services Suppliers Act, or is subject to the Ohio Consumer Sales Practices Act, which carries with it different requirements and more serious penalties for violations.

In Ohio, the Home Construction Service Suppliers Act prohibits certain deceptive acts in connection with work relating to home construction services. This Act was enacted to protect homeowners who enter into construction contracts. The Consumer Sales Practices Act on the other hand is a broader consumer protection statute that prohibits unfair or deceptive acts and practices by suppliers in consumer transactions. Whereas the Consumer Sales Practices Act will apply to a broader range of consumer transactions, the Home Construction Service Suppliers Act will only apply when the contract at issue is for construction of a residential building.  These two statutory schemes impose different contract requirements for contractors.  These laws are meant to be mutually exclusive; if the Consumer Sales Practices Act applies, the Home Construction Service Suppliers Act cannot apply and if the Home Construction Service Suppliers Act applies, then Home Construction Service Suppliers Act cannot apply.

The conflicting case law on this issue has created confusion as to precisely what a contractor must have in its contract for home remodeling. Until this conflict in the cases is squarely resolved, remodeling contractors should ensure that their contracts comply with both of these statutory schemes.  To be successful in today’s dynamic business landscape, perceptive contractors must be aware of this discrepancy and Strauss Troy’s construction lawyers are here to assist you.

Navigate this complexity with ohio attorneys with unparalleled expertise and dedication. Please contact Cincinnati construction attorneys:

Brian J. O’Connell: bjoconnell@strausstroy.com or 513.629.9451

James D. Houston: jdhouston@strausstroy.com or 513.629.9407