LDF Victory: Appellate Court Upholds Dismissal of Hutcheson v. OADA “Doc Fee” Case

The Eighth Appellate District (Cuyahoga County) has just released its decision upholding the lower court’s decision dismissing the Hutcheson “doc fee” complaint against OADA and Halleen Chevrolet.  The decision, in no uncertain terms, affirms that Ohio law recognizes a dealers’ right to charge a documentary service charge or “doc fee” up to a maximum of $250. 

The Appellate Court agreed with the trial court’s finding that the terms “documentary service fees” and “documentary service charge” are used interchangeably in ORC 4517.261 and ORC 1317.07.  The Court stated:

“We find that R.C. 4517.261 takes precedence over R.C. 1317.07 when assessing a documentary service charge in connection with the sale of a motor vehicle.

R.C. 4517.261 is a special provision applicable only to motor vehicle dealers, whereas R.C. 1317.07 is a general provision applicable to all sellers who enter into a retail installment sale contract”

The Appellate Court went on to say:

“In fact, the legislative intent is clear that R.C. 4517.261 was enacted as a special provision to clarify any confusion or resolve any argument, such as the one made

in this appeal, that motor vehicle dealers cannot assess a documentary service charge.  The legislative notes of R.C. 4517.261…expressly state the legislative intent:

SECTION 745.10. (A) The enactment of section 4517.261 of the Revised Code is intended as a clarification of existing law allowing documentary service charges to be assessed in all retail and wholesale sales and leases of motor vehicles, including those involving a retail installment sale and those not involving a retail installment sale, including leases, cash transactions, and transactions in which consumers obtain their own financing.”

We consider the Appellate Court’s decision to affirm the trial court’s dismissal of all claims to be a victory for all dealers.  We appreciate the LDF contributions made by dealers who understand the importance of providing funds that help us defend principles that impact our industry.

Hutcheson may not be finished yet.  The plaintiff has filed a similar case against First Merit Bank for financing a documentary fee in a motor vehicle transaction.  The lender has filed a motion to dismiss and we are monitoring the case.  Moreover, the plaintiff may choose to file an appeal to the Ohio Supreme Court, which would have the discretion to hear the case.  We will keep our members informed.

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