Bd. of Park Commrs. v. Key Trust Co., Unpublished Decision (9-13-2002)

CourtOhio Court of Appeals
DecidedSeptember 13, 2002
DocketCourt of Appeals Nos. E-02-009, E-02-011, Trial Court No. 99-CV-442.
StatusUnpublished

This text of Bd. of Park Commrs. v. Key Trust Co., Unpublished Decision (9-13-2002) (Bd. of Park Commrs. v. Key Trust Co., Unpublished Decision (9-13-2002)) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bd. of Park Commrs. v. Key Trust Co., Unpublished Decision (9-13-2002), (Ohio Ct. App. 2002).

Opinion

DECISION AND JUDGMENT ENTRY
{¶ 1} This is a consolidated appeal from two judgments of the Erie County Court of Common Pleas in a property dispute. The first judgment, entered February 21, 2002, denied the motion to intervene filed by appellant Wikel Farms, Ltd. The second judgment appealed from, entered March 1, 2002 upon remand from this court, determined the validity of the lease in question. On March 29, 2002, this court sua sponte ordered that the two appeals be consolidated under E-02-009. For the reasons that follow, this court affirms the judgments of the trial court.

{¶ 2} Appellants Buffalo Prairie, Ltd., et al. set forth the following assignments of error:

{¶ 3} "1. The trial court's Entry establishing the description of the leased property is directly contrary to this Court's decision in Board of Commissioners v. Key Trust 135 Ohio App.3d 787.

{¶ 4} "2. The trial court abused its discretion by adopting findings of fact which did not address the issues raised in Defendants' Answer and Counterclaim."

{¶ 5} Appellant Wikel Farms, Ltd. sets forth the following assignment of error:

{¶ 6} "The trial court erred and abused its discretion by denying the renewed motion of Wikel Farms, Ltd. to intervene."

{¶ 7} The background necessary for a thorough understanding of this appeal is as follows. In 1827, the Ohio General Assembly chartered the Milan Canal Company to construct and operate a canal from Milan, Ohio, to Lake Erie. The canal company acquired land from Ebeneser Merry and Kneeland Townsend and dug a canal between Milan and "Lock 1," located where the navigable portion of the Huron River intersected the canal.

{¶ 8} In 1881, the Milan Canal Company leased a 150-foot wide corridor through its property to the Wheeling and Lake Erie Rail Road Company. The lease was for 99 years, renewable "forever," and called for an annual rent of $50. The lease also provided that "on the failure of said Lessee * * * to so maintain and operate said Rail Road for public transportation and travel and on the abandonment thereof for railway purposes or on the failure for Six months to pay said annual rental of ($50) Fifty dollars to the said Lessor after the same became due and payable these presents shall become void and the said real estate shall revert to the said Lessor the Milan Canal Company * * *."

{¶ 9} It is undisputed that during the next 100 years, the railroad and its successor railroad companies maintained and operated a line on the leased corridor.1 In 1979, the lease was renewed for another 99 years. In October 1995, the Wheeling and Lake Erie Railway Company transferred its interest in the leased property to appellee Board of Commissioners, Erie Metroparks ("Metroparks"), which intended to convert the property to a recreational hiking and bicycling trail.

{¶ 10} In 1904, the Milan Canal Company was dissolved and its assets purchased by Stephen Lockwood. Lockwood's interest in the property eventually devolved to the testamentary trust of Verna Lockwood Williams and its trustee, Key Trust Company of Ohio. Following the purchase of the railroad's lease interest by Metroparks, a dispute arose between the trust and Metroparks concerning the continuing validity of the lease.

{¶ 11} On September 30, 1999, Metroparks initiated a declaratory judgment action against the Williams trust. Metroparks sought a declaration that the 1881 lease remains in effect, that the property may be properly used for a recreational trail, and that the scope of the lease be determined. In its answer to the complaint, the trust denied the validity of the lease and counterclaimed for a quiet title.

{¶ 12} During the pendency of the case in the trial court, the Williams trust sold its interest in the disputed land to appellant Buffalo Prairie, Ltd. Metroparks subsequently amended its complaint to include Buffalo Prairie and 32 named adjacent property owners to whom Buffalo Prairie had conveyed portions of the land at issue.

{¶ 13} It is undisputed that at the time Metroparks acquired its interest in the property in October 1995, the railroad from which it had purchased the lease had fallen several years behind in paying the rent. In September 1995, the railroad tendered a check for $300 to Key Trust, but the payment was rejected. It was also undisputed that the trust never made a demand for the unpaid rent.

{¶ 14} The matter proceeded to a bench trial, at the conclusion of which the court found that the railroad had materially breached the terms of the lease by failing to promptly pay the rent and that it had abandoned the property for purposes of operating a railroad, thereby rendering the lease void on its own terms. As a result, the railroad's conveyance to Metroparks was ineffective, the trial court held. As to the scope of the lease, the trial court found that the land subject to the lease consisted only of those parcels of land between the canal basin in Milan and the point where the canal joins the Huron River that had been conveyed by landowners Ebeneser Merry and Kneeland Townsend.

{¶ 15} From this judgment, Buffalo Prairie, the lessor, and other landowners filed an appeal and Erie Metroparks, the lessee, filed a cross-appeal. Erie Metroparks Bd. of Commrs. v. Key Trust Co. of Ohio,N.A., et al. (2001), 145 Ohio App.3d 782. Buffalo Prairie's assignments of error attacked the trial court's judgment limiting the leased property only to Milan Canal Company lands obtained from Ebeneser Merry and Kneeland Townsend, claiming that the trial court improperly reformed the lease agreement. This court held that the trial court had not modified the 1881 lease and that the lower court's finding that the lease was limited to property obtained solely from Merry and Townsend was supported by the evidence. By way of its cross-appeal, Erie Metroparks contended that the trial court erred when it concluded that the railroad had breached the 1881 lease due to abandonment and nonpayment of rent. As to those arguments, this court found that the trial court had erred by determining that the lease was invalid since, absent any demand by the trust, the railroad's lapse in its rent payment did not constitute an irreparable breach of the lease. Accordingly, this court reversed the trial court's judgment finding that the lease was invalid and remanded the case for further proceedings. This court let stand the trial court's finding as to the scope of the leased property.

{¶ 16} In its February 22, 2002 judgment entry on remand, the trial court ruled that the railroad had not abandoned the leased property and that the lease Metroparks purchased from the railroad is still in full force and effect. Although the issue was not before the trial court on remand, the court also made a finding as to the boundaries of the leased property. In so doing, the trial court found that the land owned by the Milan Canal Company at the time the lease was executed "lay within the boundaries of the Kneeland Townsend property and the Ebeneser Merry property."

{¶ 17} In their first assignment of error, appellants Buffalo Prairie, et al.

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Related

Peterman v. Village of Pataskala
702 N.E.2d 965 (Ohio Court of Appeals, 1997)
Erie Metroparks Board of Commissioners v. Key Trust Co.
764 N.E.2d 509 (Ohio Court of Appeals, 2001)
Blakemore v. Blakemore
450 N.E.2d 1140 (Ohio Supreme Court, 1983)

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Bd. of Park Commrs. v. Key Trust Co., Unpublished Decision (9-13-2002), Counsel Stack Legal Research, https://law.counselstack.com/opinion/bd-of-park-commrs-v-key-trust-co-unpublished-decision-9-13-2002-ohioctapp-2002.