Finkbeiner v. Lutz

337 N.E.2d 655, 44 Ohio App. 2d 223, 73 Ohio Op. 2d 238, 1975 Ohio App. LEXIS 5761
CourtOhio Court of Appeals
DecidedApril 28, 1975
DocketC-74287
StatusPublished
Cited by20 cases

This text of 337 N.E.2d 655 (Finkbeiner v. Lutz) 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
Finkbeiner v. Lutz, 337 N.E.2d 655, 44 Ohio App. 2d 223, 73 Ohio Op. 2d 238, 1975 Ohio App. LEXIS 5761 (Ohio Ct. App. 1975).

Opinion

Per Curiam.

This cause came on to be heard upon the appeal; the transcript of the docket and journal entries and original papers from the Hamilton County Municipal Court; the transcript of the proceedings; and the briefs and arguments of counsel.

This action grew out of a suit for forcible entry and detainer instituted by William and Mae L. Finkbeiner and Norma Finkbeiner Davis, hereinafter referred to either *224 individually or as the lessors, or as the appellants, against Louis J. Lutz, Ella Rose Lutz and Lee Lutz Sons, Inc., hereinafter referred to either individually or as the lessees, or as the appellees.

On October 15, 1958, a lease was executed between Mr. and Mrs. William Finkbeiner, the lessors, and Louis and Ella Lutz, the lessees, the original term of which was to run for two years. The lease contained language creating options for five successive renewals running through a final termination date of October 14, 1983. The instrument further provided “* * * that if the lessees desire to exercise any such option or options, they must give notice to the lessors by certified mail, return receipt requested, at least sixty (60) days prior to the expiration of the preceding term.” The lease also set out the rental fee and the specific periodic increases throughout the duration of the agreement.

The lease further provided that the instrument was not assignable without the lessors ’ written consent and that the lessees were responsible for securing liability insurance and providing the lessors with evidence thereof. At periodic intervals, the lessees made various improvements to the existing property; they enclosed the pre-existing building, eventually trebling its size, blacktopped a parking area, air conditioned the building, installed a tile floor and a furnace, and provided both interior and exterior decoration in keeping with the lessees’ business as floral experts.

Throughout the duration of the lease, the appellees admittedly failed to make timely payment of rent on numerous occasions. The appellants concede that the late payments were nevertheless accepted without question or qualification. The appellees also admit that they did not exercise the renewal options in the manner prescribed by the lease. However, on these occasions, the appellants made no protest. The appellants concede that at no time did they notify the appellees that the lease would be strictly enforced with regard to specific clauses within the agreement.

In 1964, Joseph and Louis Lutz, sons of the co-lessees, incorporated the business under the name of “Lee Lutz *225 Sons, Inc.,” and took over the operation of the floral shop. Throughout the tenancy of "Lee Lutz Sons,” the corporation paid the rent and the taxes to the lessors by corporate checks and made additional improvements to the property.

The incident which precipitated the instant cause was the alleged failure by the appellees to make a timely payment of the rent for the month of September, 1973. On September 18, 1973, the appellees received notice from Mae ■Finkbeiner, the appellants’ attorney, that the lease had been forfeited due to the appellees’ failure to make a timely rental payment. The appellees immediately tendered the September rental cheek, but it was rejected. Written notice of the appellees’ intention to exercise the option to renew the lease was also tendered to the appellants on October 3,1973, but was likewise rejected. Shortly thereafter, this action was instituted.

The appellees filed an answer which set up as defenses the equitable principles of waiver and estoppel. Following the declaration of a mistrial on March 4, 1974, the cause was tried to a jury on May 22-24 in the Hamilton County Municipal Court. Upon the conclusion of all the evidence, the court dismissed the jury, ruling that the disposition of the case was strictly a matter of law and entirely within the province of the trial court. The court thereupon rendered a judgment for the lessees on equitable grounds and denied the lessors’ request for a writ of forcible entry and detainer.

Fifteen assignments of error are presented by the lessors for our consideration upon this appeal. For purposes of both clarity and brevity, several of the assignments will be considered concurrently.

By way of summary, the appellant makes three basic assertions upon which the outcome of this appeal turns. These assertions are: first, William Finkbeiner was not the agent of the lessors; second, the lessors in no way waived their right to receive timely payment of rent; and third, the lessors in no way waived the written requirement in the lease that a specific procedure be employed in order for the lessees to exercise their options to renew the lease. The *226 arguments relating to the contentions appear in assignments of error numbers 1, 2, 3, 5, 6, 8, 9,10,11,12 and 14.

The appellants contend that parol evidence was admitted at trial, the effect of which was to alter the written lease, and that the trial court erred in holding that ‘ ‘ * * * the rights of the parties are controlled by subsequent conduct, rather than the written agreement * * The appellant cites Jolly v Mopley, 12 Ohio Law Abs. 130 for the proposition that a lease cannot be altered by showing contemporaneous and subsequent oral agreements. We concur with this statement of the law, but find it inapposite here.

In the instant case, the appellees made no attempt to demonstrate that any alteration of the lease had occurred. Rather, the appellees argued at trial, and contend here also, that due to the nature of the overall conduct of the parties, the lessors are estopped to deny that by their conduct they waived their right to now object to the appellees’ failure to strictly adhere to the written provisions of the lease. The appellees concede on their part that no portion of the lease has been amended, altered or eliminated, and, accordingly, agree that the lease must be followed to the letter in the future.

The appellees rely heavily on Lauch v. Monning, 15 Ohio App. 2d 112, which summarized the position of the lessee therein by stating:

“ * * * [A] course of dealing in accepting overdue rent had been established between the parties whereby [the lessor] * * * had waived any right to claim forfeiture for late payment of the rent installments without giving [the lessee] * * # advance notice of his intention to require strict compliance with the terms of the lease. That is the well settled law of Ohio. See Bates & Springer, Inc., v. Nay, 91 Ohio Law Abs. 425 and Milbourn v. Aska, 81 Ohio App. 79 * * * "

The facts of the case at bar are substantially similar to those in Monning, supra. Here, approximately one sixth of the rent checks from the years 1958 through 1973 were made days later, yet without protest by the lessors. We *227

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Bluebook (online)
337 N.E.2d 655, 44 Ohio App. 2d 223, 73 Ohio Op. 2d 238, 1975 Ohio App. LEXIS 5761, Counsel Stack Legal Research, https://law.counselstack.com/opinion/finkbeiner-v-lutz-ohioctapp-1975.