Nichols v. Croplands, L.L.C.

2025 Ohio 128

• Court: Ohio Court of Appeals
• Decided: January 21, 2025
• Docket: CA2024-02-005
• Status: Published

Opinion

[Cite as Nichols v. Croplands, L.L.C., 2025-Ohio-128.]

IN THE COURT OF APPEALS

TWELFTH APPELLATE DISTRICT OF OHIO

MADISON COUNTY

MARVIN NICHOLS, et al., : CASE NO. CA2024-02-005 Appellees, : OPINION : 1/21/2025 - vs - :

CROPLANDS, L.L.C., :

Appellant. :

CIVIL APPEAL FROM MADISON COUNTY COURT OF COMMON PLEAS Case No. CVH 20230086

Thomas M. McCash, for appellees.

Thompson, Dunlap & Heydinger, LTD., and Terrence G. Stolly and Connor W. Kinsey, for appellant.

BYRNE, P.J.

{¶ 1} Appellant, Croplands, LLC, appeals from the decision of the Madison

County Court of Common Pleas, General Division, which (1) found that appellees, Marvin

Nichols and Carol Nichols, possessed a life estate in certain real estate, and (2)

permanently enjoined Croplands, LLC from proceeding against the Nicholses in a forcible Madison CA2024-02-005

entry and detainer action. For the reasons discussed below, we reverse.

I. Factual and Procedural Background

{¶ 2} Marvin Nichols began working for Leckie Farms, Inc. ("Leckie Farms") in

the early 1980s. At the time, Leckie Farms was operated by Fred Leckie, Sr. Leckie

Farms paid Marvin $250 a week. As an additional element of his compensation, Leckie

Farms provided Marvin and his wife Carol with residential housing located at 8175

Rosedale Milford Center Road ("the Property").1 Leckie Farms paid for the utilities at the

Property.

{¶ 3} In 1997, this arrangement—at least with regard to housing—was reduced

to a written agreement ("the Agreement"). The terms of the Agreement were as follows:

AGREEMENT

WHEREAS, Leckie Farms, Inc. wishes to provide certain security for Marvin and Carol Nichols;

NOW, THEREFORE, it is agreed as follows: So long, and no longer, as Marvin Nichols and Carol Nichols, or either of them:

(1) Reside in the residence house at 8175 Rosedale- Milford Center Road, Mechanicsburg, Ohio; and (2) Are employed by Leckie Farms or shareholders thereof, or are retired from such employment; (3) Maintain the house and yard area; (4) Use same solely for their residence,

They, or either of them, in consideration of $1.00, the receipt whereof is hereby acknowledged, are granted the exclusive occupancy of said premises for so long as they comply with the terms above.

This agreement is personal to the parties and is not assignable.

IN WITNESS WHEREOF, the parties have affixed their

1. We do not consider or reach any questions regarding Marvin's compensation as those issues are not before us. -2- Madison CA2024-02-005

signatures this 11th day of March, 1997.

{¶ 4} The Agreement was executed by the Nicholses and Fred Leckie, Sr., as

President of Leckie Farms.

{¶ 5} In 2009, Fred Leckie, Sr. died. Fred's son and daughter then took over

operations of Leckie Farms. Marvin continued working for Leckie Farms until his medical

retirement in 2010. Despite no longer working, Leckie Farms continued paying Marvin

$250 a week until his social security disability benefit was approved in 2012. After 2012,

the Nicholses continued to reside at the Property and Leckie Farms continued to pay for

the utilities at the Property.

{¶ 6} In November 2022, Croplands purchased the farmland owned by Leckie

Farms, which included the Property. Contemporaneously with their purchase, Croplands

sent the Nicholses a notice that it was terminating what Croplands understood to be an

oral, month-to-month lease. The Nicholses subsequently sent Croplands a copy of the

Agreement.

{¶ 7} In May 2023, Croplands initiated a forcible entry and detainer ("FED") action

against the Nicholses in the Madison County Municipal Court. Afterwards, the Nicholses

filed a complaint against Croplands in the Madison County Court of Common Pleas. For

context, we pause to note that this second case is the one now on appeal.

{¶ 8} In the common pleas court complaint, the Nicholses sought a declaratory

judgment that the Agreement granted them a life estate in the Property. The Nicholses

further sought an order enjoining Croplands from evicting them from the Property. The

common pleas court granted the Nicholses a temporary restraining order while the

dispute was pending. At some point, Croplands voluntarily dismissed its FED action in

municipal court, pending resolution of the common pleas case.

{¶ 9} The common pleas court conducted an evidentiary hearing on December

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4, 2023. A representative of Croplands testified, as did Marvin Nichols.

{¶ 10} In January 2024, the common pleas court issued a journal entry in which it

found the Agreement was ambiguous as to the duration of the Nicholses' right to occupy

the Property. In this regard, the common pleas court noted that "the length of the

[A]greement is unknown. It does not provide a time limit on how long [the Nicholses] may

comply with the terms of the [A]greement." On this basis, the common pleas court

concluded that "the length of the [A]greement as written is ambiguous." Based on this

ambiguity, the common pleas court considered extrinsic evidence on the issue of whether

the Agreement was intended to create a life estate or was instead a residential lease.

Ultimately, the court determined that the Agreement granted the Nicholses a life estate in

the Property and was not subject to the provisions of R.C. Chapter 5321 (the Chapter

addressing landlord and tenant law, including FED actions). The court also granted the

Nicholses' claim for a permanent injunction barring Croplands from proceeding against

the Nicholses in a FED action.

{¶ 11} Croplands appealed, raising two assignments of error.

II. Law and Analysis

A. Life Estate or Lease?

{¶ 12} Croplands' first assignment of error states:

THE TRIAL COURT ERRED BY FINDING THE EXISTENCE OF A LIFE ESTATE IN FAVOR OF MARVIN NICHOLS AND CAROL NICHOLS WHERE THE TEXT OF THE INSTRUMENT ALLEGEDLY CREATING SAID INTEREST MAKES NO REFERENCE TO A LIFE ESTATE, AND EXPLICITLY DISCLAIMS THE BASIC LEGAL INCIDENTS TO A LIFE ESTATE.

{¶ 13} Croplands argues that the common pleas court erred in construing the

Agreement as granting the Nicholses a life estate in the Property because the document

(1) made no reference to granting property rights to the Nicholses for their lives, and (2)

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expressly forbade the Nicholses from selling, transferring, or otherwise alienating their

interest in the Property. Croplands argues that the only right conferred on the Nicholses

was the right to "exclusive occupancy," so long as the conditions in the Agreement were

met.

1. Standard of Review

{¶ 14} The Agreement is a written contract between Leckie Farms and the

Nicholses. "In construing the terms of a written contract, the primary objective is to give

effect to the intent of the parties, which we presume rests in the language that they have

chosen to employ." In re All Kelley & Ferraro Asbestos Cases, 2004-Ohio-7104, ¶ 29.

"Where the terms of the contract are clear and unambiguous, a court need not go beyond

the plain language of the agreement to determine the rights and obligations of the parties."

State ex rel. Lee v. Plain City, 2017-Ohio-8931, ¶ 21 (12th Dist.), citing Aultman Hosp.

Assn. v. Community Mut. Ins. Co., 46 Ohio St.3d 51, 55 (1989). That is to say, "[a] contract

that is, by its terms, clear and unambiguous requires no real interpretation or construction

and will be given the effect called for by the plain language of the contract." Cooper v.

Chateau Estate Homes, L.L.C., 2010-Ohio-5186, ¶ 12 (12th Dist.).

{¶ 15} This court reviews issues of contract interpretation de novo. Pierce Point

Cinema 10, L.L.C. v. Perin-Tyler Family Found., L.L.C., 2012-Ohio-5008, ¶ 10 (12th Dist.).

2. Life Estates and Rental Agreements

{¶ 16} The issue posed to the common pleas court was whether the Agreement

constituted a life estate or instead a rental agreement. The distinction was critical

because if the Agreement was a rental agreement, it would be subject to the

landlord/tenant laws set forth in R.C. Chapter 5321, and thus Croplands could potentially

proceed with its FED action to evict the Nicholses. But if the Agreement instead

concerned a life estate, then R.C. Chapter 5321 would not apply and Croplands could not

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proceed with a FED action to evict the Nicholses.

{¶ 17} Pursuant to R.C. 5321.01(D), a "rental agreement" is "any agreement or

lease, written or oral, which establishes or modifies the terms, conditions, rules, amount

of rent charged or paid, or any other provisions concerning the use and occupancy of

residential premises by one of the parties."

{¶ 18} The Fifth District Court of Appeals has described a life estate as follows:

a life estate is a freehold estate which is held by the tenant for his own life. See, Lape v. Lape (1920), 22 ONP NS 392. The life tenant is entitled to full use and possession of the Property subject to the limitation that the estate of those [who] are to follow in possession not be permanently diminished in value by his/her neglecting to do that which an orderly prudent person would do in the preservation of his own property, or by doing those things which are not necessary to the full enjoyment of the particular estate and which have the effect of permanently diminishing the value of the future estate. See Johnson v. Johnson (1894), 51 Ohio St. 446.

Bush v. Bush, 1988 WL 42481, *2 (5th Dist. Apr. 27, 1988). Accord 41 Ohio Jur.3d

Estates, Etc., § 53, 69.

{¶ 19} The "full use and possession" of the life tenant includes the right "to sell, to

give away, to mortgage, or to lease the land for a period not greater than the duration" of

the life tenant's life. Fruth v. Shultz, 1995 WL 283891, *3 (6th Dist. May 12, 1995), citing

2 Powell on Real Property, 15-57, 15-58, Paragraph 203[3] (1994). Accord Sullinger v.

Reed, 2021-Ohio-2872, ¶ 21 (3d. Dist.), citing Durben v. Malek, 2014-Ohio-2611, ¶ 66

(5th Dist.)

3. Analysis

{¶ 20} Upon our plain language review, we find the Agreement by its own terms

explicitly granted the Nicholses "exclusive occupancy" of the Property. But the Agreement

did not define the duration of the Nicholses' "exclusive occupancy" as pertaining for the

length of their lives. Instead, their right of occupancy was dependent (upon "Marvin

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Nichols and Carol Nichols, or either of them" (1) residing on the Property, concurrently

with (2) employment by Leckie Farms or a shareholder of Leckie Farms, or retirement

from such employment, (3) maintenance of the home and yard, and (4) use of the

Property solely as their residence. Therefore, hypothetically, the Nicholses' right of

"exclusive occupancy" could terminate before the end of their lives based upon the lapse

of any of the above-stated conditions. There is nothing in the text of the Agreement that

refers to the lives of the Nicholses as a measuring stick for determining the right of

"exclusive occupancy."

{¶ 21} Furthermore, under the terms of the Agreement, the Nicholses did not have

the right to leave the property or rent it to another during their lifetimes. Doing so would

have conflicted with both the residency requirement and the provision stating that the

Agreement was "personal to the parties and . . . not assignable." Both these provisions

are inconsistent with the basic rights of a life estate holder "to sell, to give away, to

mortgage, or to lease the land for a period not greater than the duration" of the life tenant's

life. Fruth, 1995 WL 283891 at *3.

{¶ 22} Essentially, no aspect of the Agreement reflects the granting of a life estate.

The Nicholses' right to occupancy was not based on their lives, but rather their fulfillment

of certain conditions, and the Nicholses had no right to transfer the interest they had in

the Agreement for the duration of the lives.

{¶ 23} In their appellate brief, the Nicholses argue that the phrase in the

Agreement, "Leckie Farms, Inc. wishes to provide certain security," indicates that Leckie

Farms intended to provide them with housing for the remainder of their lives. We

disagree. The phrase "certain security" in the Agreement references the right of

"exclusive occupancy" referenced elsewhere in the Agreement. But as stated above, the

Nicholses' right of "exclusive occupancy" was premised on meeting the conditions stated

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in the Agreement. If "certain security" referred to the Nicholses' enjoyment of the Property

for life, then the Agreement would have in some way referenced the lives of the Nicholses.

But it does not.

{¶ 24} The Nicholses cite Evans v. Willis, 2014-Ohio-1822 (5th Dist.), in support of

their argument. In Evans, the Fifth District Court of Appeals considered whether R.C.

Chapter 5321 governed the terms of a document titled "Life Lease." Id. at ¶ 12. That

agreement referred to the tenant as the "lessee" and stated that she would have the right

to remain in the home "for the rest of her life." Id. at ¶ 3. The court of appeals found that

the "Life Lease" was not a rental agreement subject to R.C Chapter 5321, but rather

concerned a life estate. Id. at ¶ 19.

{¶ 25} The Nicholses also cite Karako v. Lindberg, 1998 WL 257043 (11th Dist.

Apr. 10, 1998). In Karako, the Eleventh District Court of Appeals considered whether a

contract created a life estate where it contained language that "as long as [the tenant] is

alive and wishes to do so, he has the right to live in the house at that location." Id. at *5.

The court found that such language created a life estate. Id. at *6. The court also noted

that contractual provisions requiring the tenant to pay taxes, insurance, utilities, and

maintenance were consistent with the duties of a life tenant. Id.

{¶ 26} Evans and Karako are distinguishable from the case before us because of

the language in the documents granting the tenants in those cases the subject properties

"for the rest of her life" and "as long as he is alive," respectively. No similar language was

employed in the Agreement before us. Further, the conditions stated for exclusive

occupancy in the Agreement are inconsistent with the rights of a life tenant. Fruth, 1995

WL 283891 at *3.

{¶ 27} We find nothing ambiguous in the language of the Agreement. On its face,

the Agreement did not create a life estate, but rather, it was a rental agreement for an

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indeterminate term based on the Nicholses complying with certain conditions. It was error

to resort to extrinsic evidence in order to find that the parties intended to create a life

estate. TRINOVA Corp. Pilkington Bros., P.L.C., 70 Ohio St.3d 271, 276-277, 1994-Ohio-

524 (holding that evidence cannot be introduced to show that an agreement between the

parties was materially different from that expressed by the clear and unambiguous

language of the instrument). As such, we hold that the trial court erred as a matter of law

when it determined that the Nicholses possessed a life estate in the Property. The

Agreement is a "rental agreement" as defined in R.C. 5321.01(D), and is subject to R.C.

Chapter 5321.2

{¶ 28} We sustain Croplands' first assignment of error.

B. Permanent Injunction

{¶ 29} Croplands' second assignment of error states:

THE TRIAL COURT ERRED IN ISSUING A PERMANENT INJUNCTION RESTRAINING CROPLANDS FROM PURSING A FORCIBLE ENTRY AND DETAINER ACTION AGAINST MARVIN NICHOLS AND CAROL NICHOLS ON THE GROUNDS THAT THEY HELD A LIFE ESTATE IN THE REAL PROPERTY, AS MARVIN NICHOLS AND CAROL NICHOLS DO NOT HOLD A LIFE ESTATE IN THE REAL PROPERTY, AND ANY SUCH LIFE ESTATE WOULD NOT HAVE BEEN ENFORCEABLE AGAINST CROPLANDS.

{¶ 30} In its second assignment of error, Croplands argues that the common pleas

court's permanent injunction restraining Croplands from seeking to recover possession of

the Property in a FED action was issued in error because it was based on the erroneous

conclusion that the Nicholses possessed a life estate in the Property. We agree, and

therefore sustain Croplands' second assignment of error, based on the same reasoning

set forth in our discussion of Croplands' first assignment of error. The permanent

2. We make no comment or holding with respect to a potential FED action that Croplands may bring against the Nicholses. -9- Madison CA2024-02-005

injunction is vacated.

{¶ 31} Croplands also argues, alternatively, that even if the Nicholses possessed

a life estate in the Property, Croplands was a bona fide purchaser of the Property with no

knowledge of the existence of the unrecorded Agreement, and such life estate would

therefore be unenforceable under R.C. 5301.25(A). Given our resolution of Croplands'

first argument in support of its second assignment of error, this second issue concerning

Croplands' alleged status as a bona fide purchaser is moot and we decline to address it.

App.R. 12(A)(1)(c).

{¶ 32} Judgment reversed and permanent injunction vacated.

HENDRICKSON and M. POWELL, JJ., concur.

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