The Supreme Court of Ohio has sent a lawsuit back to the Franklin County Common Pleas Court to determine if it can be resolved under state law. This decision reverses earlier court rulings that dismissed Epcon Communities Franchising's attempt to recover part of a $2.5 million fine from Wilcox Development Group, related to alleged violations of the federal Fair Housing Act (FHA).
Justice R. Patrick DeWine, writing for the majority, emphasized judicial restraint principles, noting that courts should not decide issues unless raised by the parties involved. He stated, "We should not be deciding issues that have not been properly presented by the parties, and we should not be deciding constitutional questions unless it is necessary to do so."
The case involves Epcon Communities, which constructs residential homes and allows other companies to build under its franchise using its designs. In 2019, the U.S. Department of Justice accused Epcon of FHA violations, resulting in a $2.5 million settlement. Epcon then sought contribution from Wilcox Development Group under Ohio state law.
Wilcox argued that the relevant state law only applies to tort cases and does not cover FHA violations. The trial court dismissed the case based on federal preemption rather than addressing whether Epcon had a valid claim under Ohio law.
The Supreme Court's decision vacates previous judgments and remands the case for further consideration on whether Ohio law permits Epcon's claim against Wilcox.
Justice Jennifer Brunner concurred in judgment only, expressing her view that federal law does not prevent Epcon from seeking contribution from Wilcox. She argued that the lower courts had ample opportunity to address preemption issues when the case was appealed.
Epcon initially appealed after both lower courts sided with Wilcox's position on preemption without allowing discussion on whether Ohio law supported their claim.
The outcome of this remand could set a precedent regarding how state laws interact with federal settlements in similar cases involving homebuilders and developers.