Background
Worch Lumber commenced a civil action against Fetzer in January 2025, seeking payment of $88,518.54 for improvements made to her residence pursuant to contracts signed in July 2023. Worch alleged breach of contract, action on account, unjust enrichment, and foreclosure of a mechanic’s lien. Fetzer answered with four counterclaims, alleging that Worch violated the Home Construction Service Suppliers Act (HCSSA) by failing to comply with statutory requirements and failing to perform work in accordance with building codes and industry standards. Fetzer also alleged breach of contract and slander of title.
The trial court granted partial summary judgment to Worch, finding that the HCSSA did not apply to the parties’ transaction and therefore Fetzer’s HCSSA-based counterclaims failed as a matter of law. The court certified this determination as a final appealable order under Ohio Civil Rule 54(B), and Fetzer appealed the narrow issue of whether the HCSSA applies to her transaction.
The Court’s Holding
The Second District affirmed the trial court’s judgment, holding that the HCSSA does not apply to Fetzer’s transaction with Worch. The court adopted the interpretation used by Ohio’s Fifth and Eleventh District Courts of Appeal, concluding that the original definition of “home construction service”—as it existed when the HCSSA was enacted in 2012—encompasses only new construction, not repairs, improvements, remodels, or renovations of existing structures.
The court grounded its interpretation in the Supreme Court of Ohio’s definition of “construct” from State ex rel. Celebrezze v. National Lime & Stone Co., which holds that “construction” means “the creation of something new, as distinguished from the repair or improvement of something already existing.” Because the legislature presumably knew this definition when enacting the HCSSA in 2012, the court presumed the legislature intended “home construction service” to carry the same meaning. The court further noted that the legislature’s 2024 amendment to the statute—which explicitly added “repair, improvement, remodel, or renovation” to the definition—supports this interpretation, as it shows the legislature’s intent to extend the HCSSA’s scope.
The court disagreed with the Ninth District’s contrary position in Orion Management, Inc. v. Kaeka and rejected retroactive application of the 2024 amendment. Because Fetzer’s contracts predate the September 20, 2024 amendment, the original definition applies, and the HCSSA does not cover home improvements or renovations.
Key Takeaways
- The HCSSA applies only to new home construction contracts, not repairs, improvements, remodels, or renovations of existing homes—at least for contracts entered before September 20, 2024.
- The legislature’s 2024 amendment to include repairs and renovations is presumed to have changed the law prospectively, not retroactively, which reinforces that the original definition did not include such work.
- The Second District aligned with the Fifth and Eleventh Districts and a federal district court decision, creating clearer consensus against the Ninth District’s broader interpretation in Orion.
- For pre-amendment contracts, homeowners asserting HCSSA violations must look to other statutes (such as the Consumer Sales Practices Act) for consumer protections, as the HCSSA remedies are unavailable.
Why It Matters
This decision resolves a split among Ohio appellate districts about the scope of the HCSSA and clarifies that contracts for home improvements, repairs, and renovations entered before September 20, 2024 fall outside the HCSSA’s protections. Homeowners and contractors must now understand that disputes over work on existing homes may be governed by the Consumer Sales Practices Act rather than the more specialized HCSSA, with different remedies and procedural requirements. The decision also signals that statutes are presumed prospective unless the legislature explicitly states otherwise, limiting the impact of the recent amendment to future contracts.
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