City of Oxford v. Day, Unpublished Decision (3-16-1998)

CourtOhio Court of Appeals
DecidedMarch 16, 1998
DocketCase No. CA96-09-183.
StatusUnpublished

This text of City of Oxford v. Day, Unpublished Decision (3-16-1998) (City of Oxford v. Day, Unpublished Decision (3-16-1998)) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law.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
City of Oxford v. Day, Unpublished Decision (3-16-1998), (Ohio Ct. App. 1998).

Opinion

OPINION
Plaintiffs-appellants, the city of Oxford (the "city") and the city of Oxford Board of Zoning Appeals (the "Board"), appeal a decision of the Butler County Court of Common Pleas granting summary judgment in favor of defendant-appellee, Kay's Rentals, Inc. ("Kay's Rentals"). That judgment estops the city from enforcing its planning and zoning code (the "Zoning Code") against Kay's Rentals.

In its August 9, 1996 decision granting summary judgment in favor of Kay's Rentals, the trial court succinctly explained the nature of the present controversy between the parties as follows:

In 1987, Clifford and Catherine Zimmer, the principals of Kay's Rentals, an Ohio corporation, purchased a dwelling located at 119 N. College Avenue in Oxford, Ohio. Before the purchase, the Zimmers made clear to the listing agent, Bill Maxwell, that they would only purchase the property if they could rent it to nine students. Maxwell, in turn, contacted William Churchman, Oxford's Housing Inspector in charge of approving rental permits, and asked Churchman if Oxford would issue a rental housing permit for up to nine people on the property.

Subsequently, Churchman visited the property to conduct an inspection. After conducting his investigation, Churchman informed Kay's Rentals that the city of Oxford would issue a rental housing permit for as many as nine people for the property. In reliance, Kay's Rentals purchased the property for $103,000.

In August of 1988, Kay's Rentals applied for and received a rental housing permit for a maximum of nine students from Oxford's Department of Safety, Division of Housing. The permit as a "lodging house" was executed by Churchman. Under Oxford's Zoning Code sec. 1121.01, a lodging house is defined as:

"A dwelling where lodging, but not meals, is provided for compensation for no more than 12 persons who are not transients or members of the owner's family, and do not live as a single housekeeping unit in a family-like environment on a relatively permanent basis, and in which no cooking or dining facilities are provided in individual rooms."

Pursuant to the Zoning Code, lodging houses are permitted in areas zoned R-5, C-3, and C-4. However, the subject property is located in an area zoned R-4B. The permit was not in conformity with the zoning regulation. Oxford issued the same permit to Kay's Rentals in 1989, 1990, and 1991 while renting the house to eight or nine students per year. In 1993, Oxford refused to issue such permit and instead began issuing conditional permits with the commencement of this action.

On July 8, 1993, appellants and Stuart Meck, then the city's zoning administrator, filed a complaint for declaratory judgment in the trial court against Dennis and Barbara Day, Louise Brady dba Milopa, and William A. Phillips, asking the trial court to determine the city's right to enforce its Zoning Code against the foregoing defendants. The complaint stated that after Meck refused to issue zoning permits for the defendants, they appealed his decision to the Board.

The complaint was subsequently amended on April 12, 1994 to list as defendants eighty property owners1 who might be in violation of the Zoning Code and/or the city's housing code (the "Housing Code"). The listed property owners included the defendants named in the original complaint and Kay's Rentals. The amended complaint also specifically asked the trial court to determine whether the city was estopped from enforcing its Zoning Code and/or its Housing Code against the defendants who had been erroneously issued rental housing permits and who had relied on such permits.

By entry filed the same day, the trial court allowed Meck to "withdraw his name as a party plaintiff" to the action. A second amended complaint filed on July 1, 1994 added Joseph L. and Mary P. Burns as defendants. On March 10, 1995, Kay's Rentals filed a motion for summary judgment in which it asserted that the city should be equitably estopped2 from enforcing its Zoning and Housing Codes against Kay's Rentals. Appellants filed a crossmotion for summary judgment on April 6, 1995.

By decision filed August 9, 1996, the trial court found that the doctrine of equitable estoppel applied to the city, thereby preventing the city from enforcing its Zoning Code against Kay's Rentals. Summary judgment was subsequently granted in favor of Kay's Rentals by entry filed August 26, 1996. Appellants now appeal, raising the following three assignments of error:

Assignment of Error No. 1:

The Trial Court Erred To The Prejudice Of The City By Granting Kay's Rentals, Inc.'s Motion For Summary Judgment.

Assignment of Error No. 2:

The Trial Court Erred By Weighing The Equities Of The Matter Without Taking Into Account The Ohio Supreme Court's Mandate That The Public Interest Outweighs A Private Developer's Profit.

Assignment of Error No 3:

The Trial Court Erred To The Prejudice Of The City By Denying The City's Motion For Summary Judgment.

Civ.R. 56(C) provides in part that summary judgment shall be rendered where there is no genuine issue as to any material fact, the moving party is entitled to judgment as a matter of law, and reasonable minds could come to but one conclusion, and that conclusion is adverse to the party against whom the motion is made, who is entitled to have the evidence construed most strongly in his favor. A genuine issue of material fact exists when the relevant factual allegations in the pleadings, affidavits, depositions, or interrogatories are in conflict. Duke v. Sanymetal Prod. Co., Inc. (1972), 31 Ohio App.2d 78, 81.

An appellate court must independently review the record to determine if summary judgment was appropriate. Thus, an appellate court affords no deference to the trial court's decision while making its own judgment. Schwartz v. Bank One, Portsmouth, N.A. (1992), 84 Ohio App.3d 806, 809.

In their first assignment of error, appellants argue that the trial court erred in granting summary judgment in favor of Kay's Rentals. Specifically, appellants argue that the trial court erred in determining that the city was estopped from enforcing its Zoning Code because (1) equitable estoppel does not apply to the exercise of a governmental function; (2) equitable estoppel does not apply to the exercise of police powers; (3) equitable estoppel does not apply if the acts were ultra vires; and (4) equitable estoppel does not apply when the defendant fails to prove reasonable reliance.

"Equitable estoppel precludes a party from asserting certain facts where the party, by his conduct, has induced another to change his position in good faith reliance upon that conduct." London Lancashire Indem. Co. v. Fairbanks Steam Shovel Co. (1925), 112 Ohio St. 136, 152. The elements of equitable estoppel require that first there be a factual representation by words, acts or silence or concealment of a material fact (or at least a position contrary to that now taken). The facts underlying the representation must be known to the party at the time he makes it, or circumstances must be such that knowledge is chargeable to him. Second, the representation must be misleading. Third, the representation must induce actual reliance by the second party and such reliance must be reasonable under the circumstances and in good faith.

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619 N.E.2d 10 (Ohio Court of Appeals, 1992)
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Duke v. Sanymetal Products Co.
286 N.E.2d 324 (Ohio Court of Appeals, 1972)
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423 N.E.2d 123 (Ohio Supreme Court, 1981)
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Bluebook (online)
City of Oxford v. Day, Unpublished Decision (3-16-1998), Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-oxford-v-day-unpublished-decision-3-16-1998-ohioctapp-1998.