On appeal, Dimension argued that the trial court’s decision to confirm the awards was wrong because:
- The parties must expressly consent to consolidation pursuant to the Supreme Court’s decision in Stolt-Nielsen S.A. v. AnimalFeeds International. Corp., 559 U.S. 662 (2010).
- The arbitration agreements did not grant the panel authority to consolidate.
- Ohio law (R.C. 2712.52) requires that a petition, along with proof of unanimous consent to consolidation, must be filed with the courts to consolidate separate arbitration claims.
- The consolidation question is a threshold arbitrability question reserved for the courts.
The appellate court rejected all of Dimension’s arguments.
The court held that Stolt-Nielsen, which concerns class actions, did not apply. It explained that class-action arbitrations are “fundamentally different” from bilateral arbitrations because in class-actions, the award "no longer resolves a single agreement, but instead resolves many disputes between hundreds or perhaps even thousands of parties” and the award “adjudicates the rights of absent parties.” Here, in contrast, the arbitrations were consolidated only for the limited purposes of discovery and motion practice. In addition, the panel permitted Dimension to request a separate hearing for any individual claimant. The court noted that Dimension did not make any such requests and waited over five months to object to the consolidation.
The court also ruled that the arbitrators did not exceed their authority because “the contracts were identical and defenses were likely identical.” The arbitration provision in the PSAs gave the panel broad authority, stating “[t]he arbitrators . . . shall make their award from a standpoint of practical business practices and equity rather than strict law.” The court held that “these cases were proper for consolidated discovery and motion practice as an efficient, timely, and cost-effective alternative to litigation.”
The court held that Ohio R.C. Chapter 2712, requiring a petition and proof of unanimous consent to consolidation, did not apply here because these facts “do not involve international commercial arbitration.”
The court also ruled that “Federal Circuit Courts of Appeal have consistently held that the matter of consolidation is not a threshold question of arbitrability for a court to decide, but, rather, is a matter of procedure for the arbitrator.” The court distinguished situations that involved a motion to stay litigation already pending in court, a person who was not a party to the arbitration agreement, and an issue not within the scope of the arbitration agreement.
Thus, the court overruled all of Dimension’s assignments of error and affirmed the trial court’s decision.