Does an arbitration provision have any effect on a lien foreclosure claim?
Courts have refused to allow foreclosure proceedings to continue if the contract giving rise to the underlying claim requires the claim to be resolved by arbitration. See for e.g. Slagle Plumbing & Heating Co. v. Baker (October 2, 1979), Darke App. No. 993. Since a foreclosure requires the lien claimant to prove the validity and amount of the underlying claim, the lien claimant should be bound by a contractual provision requiring disputes to be submitted to arbitration. Following arbitration, the successful lien claimant can proceed with an a foreclosure using all the factual findings from the arbitration and award in its favor. Furthermore, arbitration provisions are not enforceable that apply to controversies involving title to or the possession of real estate. R.C. 2711.01(B).
