City of Cleveland v. Zimmerman

253 N.E.2d 327, 22 Ohio Misc. 19, 51 Ohio Op. 2d 50, 1969 Ohio Misc. LEXIS 229
CourtCuyahoga County Common Pleas Court
DecidedDecember 12, 1969
DocketNo. 723918
StatusPublished
Cited by4 cases

This text of 253 N.E.2d 327 (City of Cleveland v. Zimmerman) is published on Counsel Stack Legal Research, covering Cuyahoga County Common Pleas Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Cleveland v. Zimmerman, 253 N.E.2d 327, 22 Ohio Misc. 19, 51 Ohio Op. 2d 50, 1969 Ohio Misc. LEXIS 229 (Ohio Super. Ct. 1969).

Opinion

Bartunek, J.

This matter comes before the court npon an appeal from the decision of a referee apportioning a part of a landowner’s appropriation award to a bill-hoard advertising sign company, which had two billboards erected npon the otherwise vacant property that was taken.

The central question to be considered herein is to what extent can the billboard advertising sign company participate in the award as compensation for damages as the result of the termination of its leasehold interest?

Setting forth the relationship of the parties is a lease which was originally entered into on September 10, 1962, by Harold A. Paxson, owner of the vacant property located on the northeast corner of Ridge Road and Orchard Grove Avenue in the city of Cleveland, and by the Packer Corporation, a billboard advertising sign company. Paxson is now deceased and it is his estate which is considered to be the landowner herein. The Packer Corporation has been acquired by the Foster and Kleiser Division of Metromedia, Inc., which is the billboard advertising sign company herein.

The original lease was for a period of one year, but the tenant was given the option to renew each year for an additional one year by continuing in possession and by the payment of the annual rent of $60 within sixty days of the renewal date.

Right to terminate the lease was afforded to the landowner by giving the tenant thirty days notice of the erection of any permanent improvement, and returning to the tenant the unearned portion of the rent which had been paid in advance. Right to terminate the lease was given to the tenant when, in its opinion, the signs had become obscured or the value of the location for advertising purposes had become diminished. Under these circumstances, the unearned portion of the rent would be returned to the tenant.

[21]*21Both, parties agreed that the billboard advertising signs “shall always remain the personal property of and may be removed by the Tenant” at the termination of the lease.

In September of each year following the signing of the lease, the billboard advertising sign company continued the lease in existence by remaining in possession of the property and paying the $60 rental as required. In 1966, Metromedia removed one of the three signs on the property and caused the remaining two billboard signs to be illuminated at night.

The parties maintained their relationship without incident until September 1, 1967, when, Metromedia, unaware that Paxson had died on December 23, 1966, sent the $60 annual rental check to him and continued in possession under the terms of the lease.

Subsequently, after learning that the city of Cleveland intended to appropriate the property, in February 1968, the attorney for Paxson’s estate advised Metromedia that the lease was terminated and returned the original $60 check which had been sent to Paxson in September, and also advised the company to remove its billboard advertising signs from the premises. Metromedia promptly replied that the lease was not capable of termination in that manner and remained in possession.

After negotiation with the city, Paxson’s estate settled the appropriation matter which had been filed on June 13, 1968, and an agreed jury verdict was entered into on June 28, 1968, awarding the landowner $65,400 for the taking of this property.

Although both parties agreed that the date of appropriation for the purpose of determining the billboard advertising sign company’s share of the award was July 19, 1968, they sharply differed as to the extent of that share of the award.

The estate of Harold A. Paxson contends that the lease had expired, but further states that even if it were found to be binding, the most that Metromedia would be entitled to is $5.98, which is the value of the difference between the fair market rental of the location today and the [22]*22$60 rental payable under the lease, prorated for the remaining fifty-two days of the term of the lease.

Metromedia claims that it is entitled to a share of the appropriation award as follows:

Value of leasehold interest until the end of the term $ 5.98
Value of loss of profits from location until end of term 270.00
Pair market value of the two billboard advertising signs 5000.00
Total - $5275.98

Before we can consider the value of the leasehold interest, we must first determine if a valid lease did exist between the parties. And we believe that it did. Metro-media did everything required of it on September 1, 1967, and properly acted to extend the lease for another year. The mere act of returning the check some five months later did not in any way terminate the lease.

Hence, there was a valid lease existing between the parties at the time of the appropriation action, and Metro-media is entitled to participate in the appropriation award to be compensated for its damages. But what is the extent of that participation? That is the question we must now seek to resolve.

To support its contention that the city appropriated all of the interests in the land taken, thus entitling it to compensation for the value of the billboard signs, Metro-media cited Section 163.01, Revised Code, and In re Appropriation by Supt. of Public Works, 155 Ohio St. 454, and further claimed that a lease is a valuable interest or estate or.land, by citing Queen City Realty Co. v. Linzell, 166 Ohio St. 249; In re Appropriation for Highway Purposes, 169 Ohio St. 309; Preston v. Pecsok, 93 Ohio Law Abs. 331; and State v. DeLay, 87 Ohio Law Abs. 449.

The court agrees that a lease is a valuable interest in land which is appropriated in this proceeding. Further, having found that there was a valid lease in existence between the estate and Metromedia at the time of this action, [23]*23the court finds that Metromedia is entitled to compensation for the taking of this valuable property right.

Determination of the value of a leasehold interest was set forth in the Queen City Realty Co. v. Linzell, supra, a 1957 case which seemed to limit the value of this interest as being the difference between the reasonable rental value, being in this case $102 per year, and the actual rental required, being in this case $60 per year, or a difference of $42 per year prorated over the remaining fifty-two days of the lease, or $5.98.

But, a later case, in 1957, In re Appropriation for Highway Purposes a. k. a. Frownfelter v. Graham, supra, seems to inject another element of value into consideration, namely the value of the use of the property leased, in its holding which stated:

“2. In sharing the condemnation award, a lessee of such property is entitled to the market value of the right to use the property for the unexpired term over and above the amount of rent he is obligated to pay under the provisions of his lease.
“3. In evaluating the leasehold interest, it is proper to consider the rental the lessee is required to pay, the reasonable value of the use of the realty for the unexpired term of the lease, any premium paid by the lessee for the lease in addition to the subsequent rental, and any increase or decrease in the market value of the realty during the term of the lease.”

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Arizona Department of Revenue v. Arizona Outdoor Advertisers, Inc.
41 P.3d 631 (Court of Appeals of Arizona, 2002)
Lamar Corp. v. State Highway Com'n
684 So. 2d 601 (Mississippi Supreme Court, 1996)

Cite This Page — Counsel Stack

Bluebook (online)
253 N.E.2d 327, 22 Ohio Misc. 19, 51 Ohio Op. 2d 50, 1969 Ohio Misc. LEXIS 229, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-cleveland-v-zimmerman-ohctcomplcuyaho-1969.