{"attribution":{"source":"legal.exploreworldai.com","canonical":"https://legal.exploreworldai.com/api/public/v1/judgment-text?id=us:ohioctapp-114486-2025-07-31","cite_as":"NovaCopilot, legal.exploreworldai.com (https://legal.exploreworldai.com/api/public/v1/judgment-text?id=us:ohioctapp-114486-2025-07-31)","license":"https://legal.exploreworldai.com/revision","version":"legal-2026-10-17","fingerprint":"ewai:us:e7344b","proof":"sha256:c3d7c6f79b5f7a7fcf276cd3dc3c925e76f069df19450fca3b14d2f5d5056ba0","jurisdiction":"us","lang":"en","publisher":"NovaCopilot by ExploreWorld Legal","terms":"https://legal.exploreworldai.com/om"},"brand_source":"Source: NovaCopilot","item":{"schema_version":"1.0.0","id":"us:ohioctapp-114486-2025-07-31","jurisdiction":"us","lang":"en","brand_source":"Source: NovaCopilot","brand":{"product":"NovaCopilot","platform":"ExploreWorldAI","infrastructure":"ExploreWorld Legal","infrastructure_url":"legal.exploreworldai.com","legal_entity":"Valkiv Ventures AB","permanent_url":"https://legal.exploreworldai.com/novacopilot","source":"Source: NovaCopilot","powered_by":"Powered by NovaCopilot","license":"https://legal.exploreworldai.com/licensvillkor"},"sections":[{"title":"Front matter","paragraphs":["para_1","para_2","para_3","para_4","para_5","para_6","para_7","para_8","para_9","para_10","para_11","para_12","para_13","para_14","para_15","para_16","para_17","para_18","para_19","para_20","para_21","para_22","para_23","para_24","para_25","para_26","para_27","para_28","para_29","para_30","para_31","para_32","para_33","para_34","para_35","para_36","para_37","para_38","para_39","para_40","para_41","para_42","para_43","para_44","para_45","para_46","para_47","para_48","para_49","para_50","para_51","para_52","para_53","para_54","para_55","para_56","para_57","para_58","para_59","para_60","para_61","para_62","para_63","para_64","para_65","para_66","para_67","para_68","para_69","para_70","para_71","para_72","para_73","para_74","para_75","para_76","para_77","para_78","para_79","para_80","para_81","para_82","para_83","para_84","para_85","para_86","para_87","para_88","para_89","para_90","para_91","para_92","para_93","para_94","para_95","para_96","para_97","para_98","para_99","para_100","para_101","para_102","para_103","para_104","para_105","para_106","para_107","para_108","para_109","para_110","para_111","para_112","para_113","para_114","para_115","para_116","para_117","para_118","para_119","para_120","para_121","para_122","para_123","para_124","para_125","para_126","para_127","para_128","para_129","para_130","para_131","para_132","para_133","para_134","para_135","para_136","para_137","para_138","para_139","para_140","para_141","para_142","para_143","para_144","para_145","para_146","para_147","para_148","para_149","para_150","para_151","para_152","para_153","para_154","para_155","para_156","para_157","para_158","para_159","para_160","para_161","para_162","para_163","para_164","para_165","para_166","para_167","para_168","para_169","para_170","para_171","para_172","para_173","para_174","para_175","para_176","para_177","para_178","para_179","para_180","para_181","para_182","para_183","para_184","para_185","para_186"],"kind":"front_matter"}],"paragraphs":[{"text":"[Cite as Klarfeld v. Vestige Group, L.L.C., 2025-Ohio-2678.]","paragraph_id":"para_1"},{"text":"COURT OF APPEALS OF OHIO","paragraph_id":"para_2"},{"text":"EIGHTH APPELLATE DISTRICT","paragraph_id":"para_3"},{"text":"COUNTY OF CUYAHOGA","paragraph_id":"para_4"},{"text":"ARI B. KLARFELD, ET AL., :","paragraph_id":"para_5"},{"text":"Plaintiffs-Appellants, :","paragraph_id":"para_6"},{"text":"No. 114486","paragraph_id":"para_7"},{"text":"v. :","paragraph_id":"para_8"},{"text":"THE VESTIGE GROUP LLC, :","paragraph_id":"para_9"},{"text":"Defendant-Appellee. :","paragraph_id":"para_10"},{"text":"JOURNAL ENTRY AND OPINION","paragraph_id":"para_11"},{"text":"JUDGMENT: AFFIRMED","paragraph_id":"para_12"},{"text":"RELEASED AND JOURNALIZED: July 31, 2025","paragraph_id":"para_13"},{"text":"Civil Appeal from the Cuyahoga County Court of Common Pleas","paragraph_id":"para_14"},{"text":"Case No. CV-24-993033","paragraph_id":"para_15"},{"text":"Appearances:","paragraph_id":"para_16"},{"text":"Dworken & Bernstein Co., L.P.A., and Erik L. Walter, for","paragraph_id":"para_17"},{"text":"appellants.","paragraph_id":"para_18"},{"text":"Davis & Young, Thomas W. Wright, and Matthew P.","paragraph_id":"para_19"},{"text":"Baringer, for appellee.","paragraph_id":"para_20"},{"text":"LISA B. FORBES, J.:","paragraph_id":"para_21"},{"text":"Ari B. Klarfeld (“Klarfeld”) and New Direction Driving School, LLC","paragraph_id":"para_22"},{"text":"(“New Direction”) (collectively, “Appellants”) appeal the judgment granting The","paragraph_id":"para_23"},{"text":"Vestige Group, LLC’s (“Vestige”) motion to dismiss. For the following reasons, we","paragraph_id":"para_24"},{"text":"affirm the trial court’s decision.","paragraph_id":"para_25"},{"text":"I. Facts and Procedural History","paragraph_id":"para_26"},{"text":"New Direction is a driving school in Ohio that Klarfeld owns and","paragraph_id":"para_27"},{"text":"operates. Vestige is a limited-liability company that operates in North Carolina,","paragraph_id":"para_28"},{"text":"providing camera and GPS services. This appeal concerns whether New Direction","paragraph_id":"para_29"},{"text":"and Klarfeld can sue Vestige in the Cuyahoga County Court of Common Pleas for","paragraph_id":"para_30"},{"text":"damaging its cars.","paragraph_id":"para_31"},{"text":"On February 19, 2024, Appellants filed a complaint, alleging breach","paragraph_id":"para_32"},{"text":"of contract, unjust enrichment, negligence, tortious interference with business","paragraph_id":"para_33"},{"text":"expectancies, and tortious interference with business contracts.","paragraph_id":"para_34"},{"text":"Appellants alleged that New Direction and Vestige contracted for","paragraph_id":"para_35"},{"text":"Vestige to install cameras in New Direction’s cars for a monthly fee. Per Appellants,","paragraph_id":"para_36"},{"text":"“all of the cameras were installed incorrectly and . . . caused severe damage to every","paragraph_id":"para_37"},{"text":"car they were installed in,” leaving them inoperable. New Direction replaced the","paragraph_id":"para_38"},{"text":"damaged cars with new cars, in which Vestige again tried to install cameras. The","paragraph_id":"para_39"},{"text":"complaint states that this installation was done incorrectly, too, damaging the new","paragraph_id":"para_40"},{"text":"cars. Appellants allege that an unspecified number of the damaged cars were","paragraph_id":"para_41"},{"text":"Klarfeld’s “personal vehicles,” although New Direction used them to train student","paragraph_id":"para_42"},{"text":"drivers.","paragraph_id":"para_43"},{"text":"Attached to the complaint were contracts titled “GPS Vendor Services","paragraph_id":"para_44"},{"text":"Agreement” that New Direction and Vestige signed in 2021, 2022, and twice in 2023","paragraph_id":"para_45"},{"text":"(“the Service Agreements”). The Service Agreements each include a forum-selection","paragraph_id":"para_46"},{"text":"clause, which states that “[t]his agreement will be governed by, enforced in and","paragraph_id":"para_47"},{"text":"interpreted according to the laws of the state of South Dakota. You consent to","paragraph_id":"para_48"},{"text":"exclusive jurisdiction in the state or Federal courts of North Carolina.”","paragraph_id":"para_49"},{"text":"On April 19, 2024, Vestige moved to dismiss the complaint for lack of","paragraph_id":"para_50"},{"text":"subject-matter jurisdiction under Civ.R. 12(B)(1), lack of personal jurisdiction under","paragraph_id":"para_51"},{"text":"Civ.R. 12(B)(2), improper venue under Civ.R. 12(B)(3), and failure to state a claim","paragraph_id":"para_52"},{"text":"upon which relief can be granted under Civ.R. 12(B)(6). Appellants filed a brief in","paragraph_id":"para_53"},{"text":"opposition to the motion to dismiss on June 7, 2024.","paragraph_id":"para_54"},{"text":"On September 24, 2024, the court issued a journal entry granting the","paragraph_id":"para_55"},{"text":"motion to dismiss, enforcing the forum-selection clause in the Service Agreements.","paragraph_id":"para_56"},{"text":"Klarfeld and New Direction appealed, raising the following assignment of error:","paragraph_id":"para_57"},{"text":"“The Trial Court’s decision to grant Appellee’s Motion to Dismiss was in error.”","paragraph_id":"para_58"},{"text":"II. Law and Analysis","paragraph_id":"para_59"},{"text":"Appellants assert that the trial court improperly dismissed their","paragraph_id":"para_60"},{"text":"claims because the forum-selection clause requiring them to sue Vestige in North","paragraph_id":"para_61"},{"text":"Carolina was unenforceable. We disagree.","paragraph_id":"para_62"},{"text":"We review de novo the enforceability of a forum-selection clause.","paragraph_id":"para_63"},{"text":"Original Pizza Pan v. CWC Sports Group, Inc., 2011-Ohio-1684, ¶ 10 (8th Dist.).","paragraph_id":"para_64"},{"text":"“In a de novo review, we afford no deference to the trial court’s decision and","paragraph_id":"para_65"},{"text":"independently review the record to determine whether the trial court’s judgment is","paragraph_id":"para_66"},{"text":"appropriate.” Choice Hotels Internatl., Inc. v. C&O Developers, L.L.C., 2022-Ohio-","paragraph_id":"para_67"},{"text":"3234, ¶ 20 (8th Dist.).","paragraph_id":"para_68"},{"text":"“The party challenging the forum selection clause bears a heavy","paragraph_id":"para_69"},{"text":"burden of establishing that it should not be enforced.” Original Pizza Pan at ¶ 10.","paragraph_id":"para_70"},{"text":"The party challenging the clause may “present evidentiary materials supporting the","paragraph_id":"para_71"},{"text":"invalidity of the clause.” Id. at ¶ 16, citing Discount Bridal Servs. v. Kovacs, 127","paragraph_id":"para_72"},{"text":"Ohio App.3d 373, 376-377 (8th Dist. 1998).","paragraph_id":"para_73"},{"text":"“‘[A] forum selection clause in a commercial contract should control,","paragraph_id":"para_74"},{"text":"absent a strong showing that it should be set aside.’” Pizza Pan at ¶ 12, quoting","paragraph_id":"para_75"},{"text":"Kennecorp Mtge. Brokers v. Country Club Convalescent Hosp., 66 Ohio St.3d 173,","paragraph_id":"para_76"},{"text":"175 (1993). Courts set aside forum-selection clauses in a commercial contract if","paragraph_id":"para_77"},{"text":"there is “evidence of fraud and overreaching” or if it can be clearly shown that","paragraph_id":"para_78"},{"text":"enforcement of the clause would be “unreasonable and unjust.” Id., citing id.","paragraph_id":"para_79"},{"text":"Reviewing the record de novo, we find the trial court properly","paragraph_id":"para_80"},{"text":"dismissed this action for violating the forum-selection clause in the Service","paragraph_id":"para_81"},{"text":"Agreements.","paragraph_id":"para_82"},{"text":"A. Commercial Contracts","paragraph_id":"para_83"},{"text":"We first find that the forum-selection clause was part of a commercial","paragraph_id":"para_84"},{"text":"contract between business entities, which are ordinarily valid and enforceable. The","paragraph_id":"para_85"},{"text":"identifying information in the Service Agreements demonstrates that they are","paragraph_id":"para_86"},{"text":"commercial in nature. Each Service Agreement lists “New Direction Driving School,","paragraph_id":"para_87"},{"text":"LLC” under “Company Information.” In addition, Klarfeld signed each contract as","paragraph_id":"para_88"},{"text":"“Owner.”","paragraph_id":"para_89"},{"text":"The way Appellants used and financed the damaged vehicles also","paragraph_id":"para_90"},{"text":"demonstrates that the Service Agreements are commercial contracts. Though","paragraph_id":"para_91"},{"text":"Klarfeld allegedly used some of the damaged cars as his “personal vehicles,” the","paragraph_id":"para_92"},{"text":"complaint states that “[a]ll vehicles are driver-education vehicles . . . .” The","paragraph_id":"para_93"},{"text":"complaint also alleges that Appellants “paid off all of the vehicles that had the","paragraph_id":"para_94"},{"text":"original installations done in them with proceeds from an SBA [Small Business","paragraph_id":"para_95"},{"text":"Administration] loan . . . .”","paragraph_id":"para_96"},{"text":"For the above reasons, we find the forum-selection clauses were part","paragraph_id":"para_97"},{"text":"of commercial contracts between business entities, which — with limited exceptions","paragraph_id":"para_98"},{"text":"— are valid and enforceable. As we find below, these exceptions do not apply.","paragraph_id":"para_99"},{"text":"B. Fraud or Overreaching","paragraph_id":"para_100"},{"text":"First, we address “evidence of fraud or overreaching.” When deciding","paragraph_id":"para_101"},{"text":"whether to enforce a forum-selection clause, fraud “‘must relate directly to the","paragraph_id":"para_102"},{"text":"negotiation or acceptance of the forum selection clause itself, and not just to the","paragraph_id":"para_103"},{"text":"contract generally.’” Original Pizza Pan, 2011-Ohio-1684, at ¶ 13, quoting Four","paragraph_id":"para_104"},{"text":"Seasons Ents. v. Tommel Fin. Servs., Inc., 2000 Ohio App. LEXIS 5223, *6 (8th","paragraph_id":"para_105"},{"text":"Dist. Nov. 9, 2000). Appellants made no allegations and submitted no evidence","paragraph_id":"para_106"},{"text":"regarding negotiation for or acceptance of the forum-selection clause. We find no","paragraph_id":"para_107"},{"text":"evidence of fraud or overreaching in the formation of the provision that would justify","paragraph_id":"para_108"},{"text":"not enforcing it.","paragraph_id":"para_109"},{"text":"C. Unreasonable and Unjust","paragraph_id":"para_110"},{"text":"We also find Appellants have not clearly shown that it would be","paragraph_id":"para_111"},{"text":"“unreasonable and unjust” to require them to litigate in North Carolina. Honoring","paragraph_id":"para_112"},{"text":"a forum-selection clause is unreasonable and unjust where “enforcement under the","paragraph_id":"para_113"},{"text":"particular circumstances of the case would result in litigation in a jurisdiction so . . .","paragraph_id":"para_114"},{"text":"difficult and inconvenient that plaintiff would for all ‘practical purposes be deprived","paragraph_id":"para_115"},{"text":"of his day in court.’” Original Pizza Pan at ¶ 14, quoting Barrett v. Picker Internatl.,","paragraph_id":"para_116"},{"text":"Inc., 68 Ohio App.3d 820, 824 (8th Dist. 1990), quoting Breman v. Zapata Off-","paragraph_id":"para_117"},{"text":"Shore Co., 407 U.S. 1, 9-12 (1972). In Barrett, this court established factors that","paragraph_id":"para_118"},{"text":"guide this determination. They include “(1) which law controls the contractual","paragraph_id":"para_119"},{"text":"dispute; (2) what residency do the parties maintain; (3) where will the contract be","paragraph_id":"para_120"},{"text":"executed; (4) where are the witnesses and parties to the litigation located; and (5)","paragraph_id":"para_121"},{"text":"whether the forum’s designated location is inconvenient to the parties.” Barrett at","paragraph_id":"para_122"},{"text":"825, citing Clinton v. Janger, 583 F.Supp. 284 (N.D.Ill. 1984).","paragraph_id":"para_123"},{"text":"Regarding which law controls the contractual dispute, the Service","paragraph_id":"para_124"},{"text":"Agreements require this case to proceed under South Dakota law. This factor","paragraph_id":"para_125"},{"text":"therefore does not support Appellants’ request to set aside their agreement with","paragraph_id":"para_126"},{"text":"Vestige to litigate in North Carolina.","paragraph_id":"para_127"},{"text":"As for the parties’ residency, this case offers us a choice between","paragraph_id":"para_128"},{"text":"making a North Carolina company defend itself in Ohio or making an Ohio company","paragraph_id":"para_129"},{"text":"advance its claims in North Carolina. Regardless of our decision, one side will have","paragraph_id":"para_130"},{"text":"to litigate “on the road.” By entering into the Service Agreements, the parties agreed","paragraph_id":"para_131"},{"text":"that it would be the Appellants. This factor, too, provides no basis for not enforcing","paragraph_id":"para_132"},{"text":"the forum-selection clause.","paragraph_id":"para_133"},{"text":"On the third factor, where the contract was executed, the complaint","paragraph_id":"para_134"},{"text":"does not state where the contracts were signed. Klarfeld’s affidavit, attached to his","paragraph_id":"para_135"},{"text":"brief in opposition to Vestige’s motion to dismiss, states that “[a]ll of the contracts","paragraph_id":"para_136"},{"text":"signed by me were signed in . . . Ohio.” However, we have no information regarding","paragraph_id":"para_137"},{"text":"where Vestige signed the contract. This factor does not weigh in favor of litigating","paragraph_id":"para_138"},{"text":"this case in Ohio.","paragraph_id":"para_139"},{"text":"Regarding the location of the witnesses and parties, at least one —","paragraph_id":"para_140"},{"text":"Klarfeld — lives in Ohio. However, Appellants’ brief states that Vestige “hired and","paragraph_id":"para_141"},{"text":"sent installers to Ohio,” indicating that not all the witnesses to the installation are in","paragraph_id":"para_142"},{"text":"this state. Further, Vestige is located in North Carolina. We have no information","paragraph_id":"para_143"},{"text":"regarding whether its representatives are in Ohio. This factor does not demonstrate","paragraph_id":"para_144"},{"text":"that litigating this case in North Carolina is unreasonable and unjust.","paragraph_id":"para_145"},{"text":"We turn now to Appellants’ arguments about the final Barrett factor,","paragraph_id":"para_146"},{"text":"convenience of the parties. First, we are not persuaded that the location of the","paragraph_id":"para_147"},{"text":"damaged cars — Ohio — makes litigating in North Carolina so inconvenient that","paragraph_id":"para_148"},{"text":"enforcing the forum-selection clause is unreasonable and unjust, as Appellants","paragraph_id":"para_149"},{"text":"argue. Appellants posit that enforcing the clause would require them to “somehow","paragraph_id":"para_150"},{"text":"have all of the vehicles taken to North Carolina . . . .” Appellants do not explain why","paragraph_id":"para_151"},{"text":"this would be necessary. Appellants attached to their complaint images that they","paragraph_id":"para_152"},{"text":"claim show damage to their cars. Among other possible ways to present evidence,","paragraph_id":"para_153"},{"text":"Appellants could provide these photos to a North Carolina court.","paragraph_id":"para_154"},{"text":"Further, Appellants argue that requiring Klarfeld to bring this case in","paragraph_id":"para_155"},{"text":"North Carolina is unreasonable and unjust because he suffers from a medical","paragraph_id":"para_156"},{"text":"condition. In an affidavit, Klarfeld attests that he has “severe medical issues and","paragraph_id":"para_157"},{"text":"conditions which prohibit [him] from traveling long distances and causes [him]","paragraph_id":"para_158"},{"text":"multiple hospital visits and stays.” However, Klarfeld’s affidavit does not specify","paragraph_id":"para_159"},{"text":"from what medical condition he suffers, how it affects him physically, or what","paragraph_id":"para_160"},{"text":"treatment is required. Appellants have not provided any medical records.","paragraph_id":"para_161"},{"text":"Appellants have not shown that Klarfeld’s medical condition makes litigating in","paragraph_id":"para_162"},{"text":"North Carolina so inconvenient as to deprive him of his day in court.","paragraph_id":"para_163"},{"text":"Appellants argue the Health Insurance Portability and Accountability","paragraph_id":"para_164"},{"text":"Act (“HIPAA”) protects Klarfeld from having to disclose information about his","paragraph_id":"para_165"},{"text":"condition. However, HIPAA governs health-care providers; it does not prevent an","paragraph_id":"para_166"},{"text":"individual from choosing to disclose his own medical information. See 45 C.F.R.","paragraph_id":"para_167"},{"text":"160.103 (defining “covered entity” for purposes of HIPAA). Klarfeld put his own","paragraph_id":"para_168"},{"text":"medical status at issue by contesting the forum-selection provision on that basis.","paragraph_id":"para_169"},{"text":"Having considered the Barrett factors, we find that Appellants have","paragraph_id":"para_170"},{"text":"not demonstrated that, under the circumstances of this litigation, proceeding in","paragraph_id":"para_171"},{"text":"North Carolina will deprive them of their day in court. We therefore find that","paragraph_id":"para_172"},{"text":"enforcing the forum-selection clause is not unreasonable and unjust.","paragraph_id":"para_173"},{"text":"For the reasons above, dismissal was appropriate. Accordingly, the","paragraph_id":"para_174"},{"text":"sole assignment of error is overruled.","paragraph_id":"para_175"},{"text":"Judgment affirmed.","paragraph_id":"para_176"},{"text":"It is ordered that appellee recover from appellants costs herein taxed.","paragraph_id":"para_177"},{"text":"The court finds there were reasonable grounds for this appeal.","paragraph_id":"para_178"},{"text":"It is ordered that a special mandate be sent to said court to carry this judgment","paragraph_id":"para_179"},{"text":"into execution.","paragraph_id":"para_180"},{"text":"A certified copy of this entry shall constitute the mandate pursuant to Rule 27","paragraph_id":"para_181"},{"text":"of the Rules of Appellate Procedure.","paragraph_id":"para_182"},{"text":"______________________________","paragraph_id":"para_183"},{"text":"LISA B. FORBES, JUDGE","paragraph_id":"para_184"},{"text":"MICHELLE J. 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