Lawrence v. Klaehn

2016 Ohio 5696
CourtOhio Court of Appeals
DecidedSeptember 2, 2016
DocketOT-15-043
StatusPublished

This text of 2016 Ohio 5696 (Lawrence v. Klaehn) 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
Lawrence v. Klaehn, 2016 Ohio 5696 (Ohio Ct. App. 2016).

Opinion

[Cite as Lawrence v. Klaehn, 2016-Ohio-5696.]

IN THE COURT OF APPEALS OF OHIO SIXTH APPELLATE DISTRICT OTTAWA COUNTY

Blanca Lawrence, Executrix of Court of Appeals No. OT-15-043 the Estate of Kathryn V. Wohlers, Deceased

Appellant Trial Court No. 14 CV 365H

v.

John Klaehn, et al. DECISION AND JUDGMENT

Appellees Decided: September 2, 2016

*****

Andrew R. Mayle, Jeremiah S. Ray, and Ronald J. Mayle, for appellant.

Alan R. McKean and Martin D. Carrigan, for appellee.

JENSEN, P.J.

{¶ 1} Plaintiff-appellant, Blanca Lawrence, Executrix of the Estate of Kathryn V.

Wohlers, deceased, appeals the September 11, 2015 judgment of the Ottawa County

Court of Common Pleas granting partial summary judgment in favor of defendant-

appellee, Neil Atwater. For the reasons that follow, we affirm the trial court judgment. I. BACKGROUND

{¶ 2} Alan Atwater rented a home from his grandfather, defendant-appellee, Neil

Atwater, and resided there with his wife and three young children. The home, located on

Leutz Road, in Oak Harbor, Ohio, was next door to the farm of Kathryn Wohlers.

Kathryn, an elderly woman, became very close with Alan. He helped her with chores on

her 80-acre property and spent time with her. In early 2010, Alan proposed purchasing

Kathryn’s property on land contract with the idea that Kathryn would continue to live

there for the rest of her life and Alan and his wife would assist her as needed. Kathryn

agreed to this proposal. On June 14, 2010, they entered into a land installment contract.

The purchase price was the appraised value of $200,000, with Alan to pay an initial sum

of $15,000 by September 1, 2010, and 13 annual installments of varying amounts for the

remaining balance. The agreement included a debt-forgiveness provision that provided

as follows:

If the death of Vendor should occur before the final payment is made

by Vendee under the terms of this contract, Vendee shall be considered to

have paid in full on said property.

{¶ 3} The agreement provided that Kathryn Wohlers “is called the Vendor,” and

Alan Atwater “is called the Vendee.”

{¶ 4} The land installment contract was filed with the county recorder on June 22,

2010, along with a Transfer on Death Designation (“TODD”) Affidavit, filed pursuant to

2. R.C. 5302.22, providing for the transfer of full interest in the property to Alan upon

Kathryn’s death. Kathryn was 88 years old when the agreement was executed.

{¶ 5} On April 16, 2011, Alan murdered his wife and three young children, and

committed suicide.1 On September 2, 2011, the Ottawa County probate court granted an

application to assign Alan’s interest in the land installment contract to Neil in

consideration of the sum of $10,000. Neil signed an acceptance of the assignment and

Kathryn signed a consent to the assignment on September 21, 2011. The assignment was

filed with the recorder’s office on September 28, 2011.

{¶ 6} On August 25, 2014, Kathryn executed a new TODD Affidavit in favor of

plaintiff-appellant, Blanca Lawrence. She executed a will on the same date, designating

Lawrence as her sole beneficiary and describing her as her “close friend” and

“caregiver.” Kathryn also purported to execute an “addendum” to the June 22, 2010

land installment contract and to the September 28, 2011 assignment of interest in the land

contract. This addendum revoked the debt-forgiveness provision recited above, and

specifically provided that upon Kathryn’s death, the entire outstanding balance would

become due and owing to her estate. There was a space for Neil’s signature, however,

Neil never signed the document.

{¶ 7} On November 7, 2014, Kathryn filed the present action. She asserted claims

for breach of contract, unjust enrichment, and conversion, and she claimed the contract

1 Alan had a fourth child, a twelve-year-old girl, who survives him.

3. was void as against public policy. Kathryn died on December 3, 2014, and Neil’s

attorney filed a suggestion of death two days later. Lawrence was substituted as the

plaintiff in this case. She filed an amended complaint on May 4, 2015.

{¶ 8} In her amended complaint, Lawrence contended that there was no

consideration given for the debt-forgiveness provision, the provision was not assignable,

and Kathryn did not want Neil to receive the property outright without paying the full

value. She asserted four claims. In count I, she claimed that the debt-forgiveness

provision was invalid. In count II, she sought a declaratory judgment that the debt-

forgiveness provision failed to comply with requirements of a testamentary document and

was, therefore, invalid; that Neil is obligated to pay the full amount for the property; that

Neil breached the land installment contract by failing to remit the December 1, 2011

payment along with the December 1, 2014 payment, and that if the debt-forgiveness

provision was valid, it was personal to Alan and was not assignable. In count III, she

alleged that Neil breached the contract by failing to remit the December 1, 2011, and

December 1, 2014 payments. And in count IV, she asserted that Neil was unjustly

enriched by failing to make these payments.

{¶ 9} Neil asserted four counterclaims. In count I, he sought a declaratory

judgment that the August 25, 2014 TODD is void; that the land contract is fully

enforceable; that Neil is considered to have paid in full and to have fully performed under

the contract; that Lawrence is in breach for failing to convey a proper deed to him; and

that Neil is the sole owner of the property. In count II, he requested injunctive relief

4. prohibiting Lawrence from pursuing threatened criminal prosecution for Neil’s refusal to

vacate the property. In count III, he sought to quiet title. And in count IV, he asserted a

claim for slander of title.

{¶ 10} Neil moved for summary judgment on Lawrence’s claims. He contended

that the August 25, 2014 TODD was subject to the land contract and that the assignment

of the land contract was proper. He cited R.C. 5301.331 which provides that “The

assignment by the vendee * * * shall transfer the right held by the vendee under the land

contract in the premises described in the contract unless otherwise stated in the land

contract or in the assignment.” Neil pointed out that although not required, Kathryn

consented to the assignment. He also insisted that the debt-forgiveness provision was a

contractual obligation and not an attempt to make a testamentary gift. He disputed that

any amounts remained due and owing under the contract.

{¶ 11} Lawrence opposed Neil’s motion and also moved for partial summary

judgment. She maintained that the debt-forgiveness provision was enforceable only by

Alan because the contract provided that he—not his heirs, successors, administrator,

executor, or assign—was the “Vendee.” She contended that while R.C. 5301.331 permits

the assignment of a land contract, it does not permit the assignee to rewrite the contract to

expand the definition of “Vendee.” She claimed that the parties included that provision

of the agreement with an appreciation of their relative ages and life expectancies and that

to allow another person to step into either parties’ shoes would frustrate the parties’

expectations and intent. In addition to this, Lawrence claimed that because the debt-

5.

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2016 Ohio 5696, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lawrence-v-klaehn-ohioctapp-2016.