Klein v. Equitable Life Assurance Society

477 N.E.2d 1190, 17 Ohio App. 3d 50, 17 Ohio B. 105, 1984 Ohio App. LEXIS 12430
CourtOhio Court of Appeals
DecidedMay 16, 1984
DocketC-830562
StatusPublished
Cited by4 cases

This text of 477 N.E.2d 1190 (Klein v. Equitable Life Assurance Society) 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
Klein v. Equitable Life Assurance Society, 477 N.E.2d 1190, 17 Ohio App. 3d 50, 17 Ohio B. 105, 1984 Ohio App. LEXIS 12430 (Ohio Ct. App. 1984).

Opinion

Per Curiam.

This cause came on to be heard upon appeal from the Court of Common Pleas of Hamilton County, Ohio.

Plaintiff-appellant, Robert Klein, presently leases storeroom space in the Kenwood Mall from its current owner, defendant-appellee Equitable Life Assurance Society of the United States. Klein’s complaint against Equitable Life contains two causes of action for which he claims to be entitled to relief: (1) Equitable Life is liable for breaching its lease agreement with Klein, and (2) Equitable Life is liable in fraud for the false promises made to Klein by Equitable Life’s predecessor in interest. Equitable Life moved for summary judgment on Klein’s complaint and the court below granted the motion. The sole assignment of error in this appeal presents the issue of whether the court below properly granted the motion for summary judgment.

Carl and Robert Lindner are Equitable Life’s predecessors in interest to the Kenwood Mall. The Lindners developed the Kenwood Mall in the mid-1960’s and were the original lessors of the storeroom space to Klein. Klein leased the space for the purpose of carrying on an optician-optometrist business. Klein entered into his lease with the Lindners on February 3, 1965, and the term of the lease (by agreement of Klein and the Lindners) commenced on October 1, 1966. Contained in Section 6.01 of the lease are the following provisions relevant to Klein’s complaint:

“Lessee will not operate or cause to be operated a discount house or discount business on the Leased Premises. The purposes of this lease, ‘discount house’ or ‘discount business’ shall mean a retail establishment which regularly sells the major portion of its merchandise at prices below normal, usual retail prices or advertises or holds itself out to the public as a discount house or as regularly selling at below normal, usual retail prices * * *. During the term of this lease, the Lessor agrees that it shall not lease to any other tenant in the Shopping Center any space for the purpose of carrying on the business of Optician and/or Optometrist; provided, however, that such restrictions shall not apply to the space occupied by the Shillito Department Store.”

The Lindners also leased space in the Kenwood Mall to Super X Drugs. The Super X lease was executed on June 19, 1964 and its term commenced on August 1, 1966 — both dates prior to commencement of the term of the lease between the Lindners and Klein. From the beginning of its operations at the Kenwood Mall, Super X carried on what could be termed a discount business. Unlike Klein’s lease, Super X’s lease does not contain an agreement for Super X to not carry on a discount business at the Kenwood Mall. In the fall of 1979 Super X opened a discount optical department at its Kenwood Mall location. In the first prong of his claim for relief, Klein claims that Equitable Life’s allowing Super X to open an optical department constitutes a breach of Section 6.01 of his agreement with lessor.

*52 The Lindners no longer own the Kenwood Mall, and therefore are no longer Klein’s lessors. On December 15, 1975, Equitable Life acquired title to the Kenwood Mall and became assignee of the Lindner’s interests as lessor of space in the mall. As assignee, Equitable Life entered into the following agreement with the Lindners (the assignors):

“The ASSIGNEE covenants and agrees, in consideration of this assignment, to keep and perform all the conditions, covenants and provisions of said Leases, and to indemnify and save harmless the ASSIGNORS from and against any and all losses and expenses by reason of any default of the ASSIGNEE in respect thereto.”

In the second prong of his claim, Klein argues that Equitable Life, by virtue of the above agreement, is liable for the fraud he claims the Lindner’s agent, Phillip J. Petricone, committed in inducing Klein to originally enter his lease. Klein, in an affidavit, states that Petricone fraudulently represented to him that: (1) no optician or optometrist was located in the Kenwood Mall at the time of the negotiations that led to the formation of the lease, and that if the lease were executed, no other optician or optometrist would be permitted to locate in the mall except in the space occupied by the Shillito Department Store; and (2) no discount business would be permitted to be operated by any of the other tenants in the Kenwood Mall, and a restrictive covenant similar to the one contained in Section 6.01 of Klein’s lease was present in each existing lease and would be required of each future lessee of space within the mall.

Klein’s single assignment of error, that the court below incorrectly granted Equitable Life’s motion for summary judgment, deals with both the issue of whether Equitable Life is in breach of its lease agreement with Klein and whether Equitable Life can be held liable for the alleged fraud of the agent of its predecessor in interest. Both issues, since disposed of in Equitable Life’s favor on its motion for summary judgment, are subject to the standards of Civ. R. 56, quod vide.

Initially addressing the breach of lease question, we find the terms of the pertinent lease agreements dispositive. Klein’s lease for space in the Kenwood Mall provides that the lessor — the Lind-ners when the agreement was entered into, Equitable Life now — shall not, during the term of the lease with Klein, lease space in the mall to any other tenant for the purpose of carrying on an optician and/or optometrist business, except that such restriction should not apply to the space occupied by Shillito’s. Super X entered into its lease for space in the Kenwood Mall prior to the commencement of the term of Klein’s lease. The Super X lease contains no restrictions with respect to Super X’s use of the storeroom space for carrying on an optician-optometrist business. More important to this action, the Klein lease contains no terms warranting that the lessor had required that all prior lessees not carry on an optician-optometrist business. Therefore, since Super X is a prior lessee, the lessor is not in breach of its agreement with Klein by having allowed Super X the freedom to open an optician-optometrist department.

Klein, in his argument, attaches much significance to the addition of the clause excepting the space occupied by Shillito’s from the operation of the agreement restricting those who can open an optician-optometrist business in the mall. Klein states that since both Shillito’s and Super X entered into their leases with the lessor prior to the commencement of the term of Klein’s lease, the specific exception of the Shillito space from the operation of the restrictive covenant in the Klein lease means that only the Shillito space was to be exempted from the covenant’s operation. We disagree with Klein’s interpretation *53 of the effect of the specific Shillito space exemption on the restrictive covenant.

The language of the restrictive covenant and Shillito space exemption is unambiguous. Klein bases his argument on only one of any number of possible reasons why the Shillito space exemption is added to the restrictive covenant.

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

Related

Federated Management Co. v. Coopers & Lybrand
738 N.E.2d 842 (Ohio Court of Appeals, 2000)
Fahey Banking Co. v. Adams
648 N.E.2d 68 (Ohio Court of Appeals, 1994)
Firestone v. Galbreath
747 F. Supp. 1556 (S.D. Ohio, 1990)

Cite This Page — Counsel Stack

Bluebook (online)
477 N.E.2d 1190, 17 Ohio App. 3d 50, 17 Ohio B. 105, 1984 Ohio App. LEXIS 12430, Counsel Stack Legal Research, https://law.counselstack.com/opinion/klein-v-equitable-life-assurance-society-ohioctapp-1984.