Besancon v. Cedar Lane Farms, Corp.

2017 Ohio 347
CourtOhio Court of Appeals
DecidedJanuary 31, 2017
Docket16AP0003
StatusPublished
Cited by4 cases

This text of 2017 Ohio 347 (Besancon v. Cedar Lane Farms, Corp.) 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
Besancon v. Cedar Lane Farms, Corp., 2017 Ohio 347 (Ohio Ct. App. 2017).

Opinion

[Cite as Besancon v. Cedar Lane Farms, Corp., 2017-Ohio-347.]

STATE OF OHIO ) IN THE COURT OF APPEALS )ss: NINTH JUDICIAL DISTRICT COUNTY OF WAYNE )

WILLIAM BESANCON, et al. C.A. No. 16AP0003

Appellees/Cross-Appellants

v. APPEAL FROM JUDGMENT ENTERED IN THE CEDAR LANE FARMS, CORP., et al. COURT OF COMMON PLEAS COUNTY OF WAYNE, OHIO Appellants/Cross-Appellees CASE No. 2014 CVC A000251

DECISION AND JOURNAL ENTRY

Dated: January 31, 2017

WHITMORE, Judge.

{¶1} Cedar Lane Farms, Corp. (“Cedar Lane”) appeals from the judgment of the

Wayne County Court of Common Pleas. William and Sandy Besancon (“the Besancons”) cross-

appeal. This Court affirms in part and reverses in part.

I.

{¶2} This appeal involves a series of agreements between Cedar Lane and the

Besancons or their predecessors. In 1986, Cedar Lane and Mr. Besancon’s parents entered into a

10-year lease agreement for certain property owned by Mr. Besancon’s parents. The leased

property was identified by the parties as parcels A and B in a drawing attached to the lease. The

agreement provided the option to renew the lease for two additional 10-year periods. In 1992,

the property was transferred to the Besancons. In 1996, Cedar Lane and the Besancons executed

their first “Memorandum of Lease Extension.” 2

{¶3} In 2006, the Besancons filed an eviction action against Cedar Lane. The parties

settled that lawsuit and had the terms of their settlement transcribed by a stenographer. The

transcribed settlement stated that “the parties will enter into a Memorandum Extension which for

the period of 2006 to 2016 will require rent in the amount of $1,000 per month[.]” It continued,

“there will be a $2,400 payment paid today for consideration of a lease extension for an

additional five-year period extending from 2017 to 2021, and also in consideration of that

extension a second payment will be made * * * by June 30th of 2007 in the amount of $3,000.”

The transcribed settlement then addressed the rent amount for the extension period and the

disposition of various assets upon the lease’s termination.

{¶4} Thereafter, the parties executed a “Memorandum of Second Lease Extension”

(“Second Lease Extension”). The Second Lease Extension provided for rent “payable in

monthly installments of $1,000.00 on or before the 18th day of each month * * * [p]rovided that

the $3,000.00 payable for February, March and April 2006 may be paid by June 30, 2006.”

Addressing the option for the additional five-year renewal, it provided: “In consideration of this

additional term option, Lessee has paid to Lessor the sum of $2,400.00, the receipt of which

Lessor acknowledges.” The disposition of the assets upon the lease’s termination was different

than what was stated in the transcribed settlement. The Second Lease Extension was signed by

all the parties, apparently without any further discussion of the differences between it and the

transcribed settlement.

{¶5} In 2010, Cedar Lane approached the Besancons concerning an algae research

project that Touchstone Research Laboratory, Ltd. (“Touchstone”) proposed to do on the

property. The Besancons agreed to allow the research, and Cedar Lane entered into a lease

agreement with Touchstone. Although there was no written agreement between Cedar Lane and 3

the Besancons concerning this, Cedar Lane paid the Besancons $200 per month during this

project. Towards the end of the project, Touchstone issued Cedar Lane a check including $5,000

that the Besancons claim was intended for them.

{¶6} The Besancons filed the current action against Cedar Lane in 2014. The

Besancons sought (1) a declaration “that the [Besancons] have the sole and exclusive right to the

‘North Field’ under the original and subsequent lease extensions;” (2) a declaration “that the 3

year oral lease has expired and that [Cedar Lane] ha[s] no rights in the ‘North Field’ and

possession is returned to [the Besancons];” and (3) reformation of the Second Lease Extension

“to conform with the true understanding of the parties.” Cedar Lane filed counterclaims for (1)

intentional interference with a contractual relationship; (2) breach of contract; and (3) declaratory

judgment concerning the area covered by the lease and its exercise of its option to extend the

lease until 2021. Thereafter, the Besancons amended their complaint adding a claim for

conversion and also seeking punitive damages.

{¶7} The parties filed cross-motions for summary judgment. Finding “disputes of

material fact,” the trial court denied the motions for summary judgment. The matter proceeded

to a bench trial. Mr. Besancon, Mrs. Besancon, and Thomas Machamer, who is the president of

Cedar Lane, testified at the trial. The trial court “declare[d] [the Besancons] have the sole and

exclusive right to the ‘North Field’ under the original and subsequent lease extensions * * * [and

that] possession of the ‘North Field’ is returned to [the Besancons] as [Cedar Lane’s] oral lease

has expired.” The trial court reformed the Second Lease Extension concerning the consideration

for the option to extend the lease until 2021 and the disposition of assets upon termination of the

lease. The trial court further found that Cedar Lane had converted $5,000 belonging to the

Besancons, which Cedar Lane was ordered to pay with interest. On Cedar Lane’s counterclaims, 4

the court found that the Besancons had not interfered with Cedar Lane’s contractual relationship

with Touchstone and that the Besancons had not breached the lease’s covenant of quiet

enjoyment. The court further found that Cedar Lane had not paid the full consideration to extend

the lease until 2021 and declared that the lease expired on January 31, 2016. Finally, the court

“declare[d] that Parcel B is included in the original and subsequent lease extensions, however,

Parcel B did not include the North Field * * *.” Upon Cedar Lane’s motion and the posting of a

bond, the trial court stayed its judgment pending this appeal.

{¶8} Cedar Lane has appealed, raising seven assignments of error. The Besancons

have cross-appealed, raising one assignment of error. For ease of discussion, we address some of

the assignments of error jointly.

II.

Cedar Lane’s Assignment of Error Number One

THE TRIAL COURT ERRED BY DENYING CEDAR LANE’S MOTION FOR SUMMARY JUDGMENT AS TO THE AREA CONTAINED IN PARCEL B.

{¶9} In its first assignment of error, Cedar Lane contends that the trial court erred in

denying its motion for summary judgment. According to Cedar Lane, the trial court incorrectly

looked outside the four corners of the lease agreement to determine which land was encompassed

within the agreement.

{¶10} The original lease agreement provided that a legal description of the leased

premises was “attached hereto and incorporated herein as Exhibit A, with that portion of the

premises covered by the terms of this Lease described in the drawing attached hereto as Exhibit

B.” Exhibit A appears to be the legal description of the entire 102.25 acre farm owned by the

Besancons. Exhibit B is a drawing of four parcels labeled A, B, C, and D. The parties agree that

the parcels labeled “A” and “B” are the areas leased by Cedar Lane. The parties disagree, 5

however, over which land is included in parcel B. This is because the letter “B” is written inside

a small rectangle that is centered within another larger rectangle.

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