Masheter v. Boehm

307 N.E.2d 533, 37 Ohio St. 2d 68, 66 Ohio Op. 2d 183, 1974 Ohio LEXIS 192
CourtOhio Supreme Court
DecidedFebruary 20, 1974
DocketNo. 73-468
StatusPublished
Cited by57 cases

This text of 307 N.E.2d 533 (Masheter v. Boehm) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Masheter v. Boehm, 307 N.E.2d 533, 37 Ohio St. 2d 68, 66 Ohio Op. 2d 183, 1974 Ohio LEXIS 192 (Ohio 1974).

Opinion

Paul "W. Bbown, J.

The central question presented in this case is, at what point will personal property be considered to have become merged with the land or structures on the land appropriated, so that it must be deemed a part of the realty taken, and be compensated for in the condemnation award. For reasons set forth below, we find that the trial and appellate courts applied an erroneous test of law to the facts before them in determining the scope of the appropriation, and therefore we must reverse and remand-[72]*72the cause to the Probate Court for reconsideration consistent with this opinion.

The concept of personal property shedding its identity as personalty and assuming, from its relationship to land or structures situated thereon, the status of real property or fixtures, has bedeviled courts for years, and has continually stymied them in their efforts to formulate a comprehensive and generally applicable rule of law. Complicating the task is the need for definition in situations where the relationships between the parties differ, or where considerations of public policy point in different directions, e. g., eminent domain, taxation, vendor-vendee, and mortgagor-mortgagee.

The director, in his appropriation petition, required by B. C. 163.05, announced his intent to appropriate appellees’ interest in the real property therein described. It is a settled doctrine that, although personal property which has attained fixture status is part of the real property taken, personal property, per se, is not taken and is therefore not compensable. Lucas v. Carney (1958), 167 Ohio St. 416. Tn determining whether property is of such a nature as to be considered a part of the realty, reference must first be made to the landmark case of Teaff v. Hewitt (1853), 1 Ohio St. 511. In that case, a mortgagee of real property on which was located a woolen mill sought to enjoin holders of chattel mortgages against the mill owner from having-execution made against various items of machinery and equipment to satisfy judgments against the insolvent mill owner. Considering the question of when such items become a part of the realty and when they remain personalty, the court held that:

“The true criterion of a fixture, is the united application of the following requisites, to wit: 1st. Actual annexation to the realty, or something appurtenant thereto. 2d. Application to the use, or purpose, to which that part of the realty with which it is connected, is appropriated. 3d. The intention of the party making the annexation, to make a permanent accession to the freehold.”

The formula postulated in Teaff, supra, was adopted [73]*73by courts throughout the country as the fixed pole in the development of the law of fixtures. See, generally, 35 American Jurisprudence 2d 699, Fixtures, and 24 Ohio Jurisprudence 2d 343, Fixtures. As that body of law evolved, flesh was added' to the bare bones of the tripartite Teaff test. Particularly in Ohio, refinements of the law were generated by cases where the relationship between the parties was other than that of condemner and condemnee, as in an appropriation proceeding. Although it is not proper to automatically apply to condemnation situations rules developed in non-condemnation cases, e. g., where the transfer of property was voluntary, or where there was a contract defining rights in specific property, such rules aré a valuable aid in appropriation proceedings.

The factor of physical annexation of personal property to the realty has come to be regarded as less determinative of fixture status than was formerly the case at common law. In Holland Furnace Co. v. Trumbull Savings & Loan Co. (1939), 135 Ohio St. 48, where the question was whether a warm-air furnace attached only by sections of pipe to the registers in a house was a fixture passing with the house upon foreclosure of the mortgage, this court declared that while there must be annexation to the realty to make a fixture of a chattel, the annexation may be slight. At page 53, the court stated that the annexation factor #is now regarded as the least important [of the three-part formula of Teaff, supra], and slight attachment is sufficient if the other tests are met.”

Thus, a chattel may be considered a fixture even though only slightly attached to the realty, as in Holland, supra, or though only constructively attached (XXth Century Heating & Ventilating Co. v. Home Owners’ Loan Corp. [1937], 56 Ohio App. 188), but will not necessarily be considered a fixture because of a high degree of attachment to the realty unless the other criteria are met, Holland, supra.

Of more importance in determining whether personal property has become a fixture is the intention of the party responsible for emplacing the item, and the use or púrpose [74]*74to which it is put. The distinction made in Fortman v. Goepper (1863), 14 Ohio St. 558, between chattels primarily devoted to the business conducted on the premises and chattels devoted primarily to the realty itself was reaffirmed in Zangerle v. Standard Oil Co. (1945), 144 Ohio St. 506, and Zangerle v. Republic Steel Corp. (1945), 144 Ohio St. 529. Those cases dealt with the tax valuation of land and improvements used in heavy industrial operations. Unlike the instant case, in the Zangerle cases it was to the advantage of the landowner to have even the largest and most permanent of the installations considered as personal property, which was valued for the tax rolls at a lower percentage of its true value than was real property. The court in Zangerle v. Republic Steel, supra, held, in the seventh paragraph of the syllabus:

“The general principle to be kept in view in determining whether what once was a chattel has become a fixture is the distinction between the business which is carried on in or upon the premises, and the premises. The former is personal in its nature, and articles that are merely accessory to the business, and have been put upon the premises for this purpose, and not as accessions to the real estate, retain the personal character of the principal to which they belong and are subservient. But articles which have been annexed to the premises as accessory to it, whatever business may be carried on upon it, and not peculiarly for the benefit of a present business which may be of a temporary duration, become subservient to the realty and acquire and retain its legal character. * * *”

The necessary corollary to that principle is that articles annexed to the premises so as to become a part of it, even though of benefit to any and all businesses which might be carried on there, take on the legal characteristics of real property.

However, even in business fixture cases it is generally held that the intention of the annexing party is of primary importance. Zangerle v. Standard Oil, supra (144 Ohio St. 506). The intention to annex personal property so that it becomes a part of the realty, or the contrary, may [75]*75be manifested in a contract, Silberman & Co. v. Acme House Wrecking Co. (1928), 7 Ohio Law Abs. 471 (lease); Citizens Savings $ Trust Co. v. Cincinnati & Dayton Traction Co. (1922), 106 Ohio St. 577 (mortgage); by the annexer’s dealings with the annexed property, Zangerle v. Standard Oil Co., supra, or otherwise.

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Bluebook (online)
307 N.E.2d 533, 37 Ohio St. 2d 68, 66 Ohio Op. 2d 183, 1974 Ohio LEXIS 192, Counsel Stack Legal Research, https://law.counselstack.com/opinion/masheter-v-boehm-ohio-1974.