Otey v. Wiley

519 S.W.3d 515, 2017 WL 2256753, 2017 Mo. App. LEXIS 471
CourtMissouri Court of Appeals
DecidedMay 23, 2017
DocketNo. ED 103960
StatusPublished
Cited by1 cases

This text of 519 S.W.3d 515 (Otey v. Wiley) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Otey v. Wiley, 519 S.W.3d 515, 2017 WL 2256753, 2017 Mo. App. LEXIS 471 (Mo. Ct. App. 2017).

Opinion

SHERRI B. SULLIVAN, P.J.

Introduction

Debra Wiley (Wiley) appeals from the trial court’s judgment entered in favor of Elmer M. Otey (Otey) on his claim for rent and possession. We affirm as modified.

Factual and Procedural Background

On November 17, 2015, Otey filed a Petition and Affidavit for rent and possession seeking $6,700 in damages for unpaid rent from Wiley from January 2015 through November 2015 in the circuit court of the City of St. Louis. On January 12, 2016, the court entered a default judgment against Wiley in the amount of $14,400 and granted possession of the premises to Otey.

On January 19, 2016, the court heard and granted Wiley’s motion to set aside the default judgment. That day the parties entered into a consent judgment as to possession and the court conducted a bench trial on the issue of unpaid rent and damages. The following evidence was adduced at trial.

In December 2014, Wiley entered into a written lease agreement for the premises with Carletta Lloyd (Lloyd), Otey’s ex-wife. The terms of the lease, signed by Lloyd and Wiley, provided the monthly rent of $1,500 be paid to Lloyd on the 1st of each month from December 2014 through December 2015. The lease states that a $30 late charge will be applied to late payments. At the time of the lease agreement, Lloyd and Otey jointly owned the property.1 On January 5, 2015, the St. [517]*517Louis County Circuit Court entered a judgment, pursuant to a settlement agreement, quieting title to the property in favor of Otey.2 Wiley testified she had been renting the property from Lloyd for over three years when Otey became the sole owner of the property in January 2015.

On January 6, 2015, Otey hand-delivered to Wiley a letter informing her that he was the new owner of the property. The letter advised Wiley she must sign a new rental agreement with him at the rate of $1,800 per month and if she did not sign the new lease, the rent would increase to the default rate of $2,200 per month. On January 9, 2015, Otey presented Wiley with said lease, which included a provision allowing him to charge a fee for late payments.

Wiley refused to sign the new lease, advising Otey she had an existing lease to pay $1,500 per month. Wiley' stated Otey insisted he needed $1,800 a month and that she ultimately agreed to pay him $1,800 per month for 10 of the 12 months under the lease, for a total of $18,000, because the total amount of money paid would be equal to paying $1,500 per month for the 12 months under the terms of the existing lease.

Wiley testified she paid Otey $1,800 per month from January through October and nothing in November and December, thus satisfying the terms of the lease. Otey acknowledged Wiley paid him $1,800 per month from January through September but asserted Wiley’s October payment was returned for insufficient funds and was never satisfied. Otey further testified Wiley was late in her payments on seven occasions. Wiley acknowledged she had to stop payment on her initial October payment to Otey but insisted she later satisfied the payment.

On January 19, 2016, the court entered judgment against Wiley and in favor of Otey in the amount of $10,600. This appeal follows.

Points on Appeal3

In her first point, Wiley argues the trial court misapplied the law in finding in favor of Otey because she had a valid, enforceable existing lease agreement and a new owner of land is bound by the existing terms of a rental agreement.

In her second point, Wiley argues the trial court abused its discretion in denying her motion to join Lloyd as an indispensable party or in the alternative, to call Lloyd as a witness.

Standard of Review

In a court-tried ease, we will affirm the judgment unless there is no substantial evidence to support it, it is against the weight of the evidence, or it erroneously declares or applies the law. Inv’rs All., LLC v. Bordeaux, 428 S.W.3d 693, 695 (Mo. App. E.D. 2014). All evidence and reasonable inferences favorable to the prevailing party are accepted as true and we disregard any contrary evidence and inferences. Rutherford v. Davis, 458 S.W.3d 456, 458 (Mo. App. E.D. 2015). We defer to the trial court’s credibility determinations and its resolution of conflicting evidence. Id. Issues of statutory construction, however, are reviewed de novo. Bordeaux, 428 S.W.3d at 695.

[518]*518Discussion

At trial, Otey’s claim was premised on the contention Wiley did not have a valid pre-existing lease because her lease with Lloyd “was null and void [since] ... [he] wasn’t a party to it.” Wiley’s defense was that she fulfilled her rent obligation under her existing written lease agreement by paying Otey more than the contract rate from January through October.

Based on the evidence presented at trial, it appears the trial court awarded Otey damages as follows: (1) $3,600, representing $400 per month from January through September for the difference between the “default” rent of $2,200 and the $1,800 Wiley paid; (2) $6,600, representing $2,200 per month for unpaid rent for October, November, and December; and (3) $400 in late fees, representing $40 for each of the times Wiley’s payments were either late or absent, for a total of $10,600. As such, the court must have found Wiley failed to make her October rent payment, and that Otey was not bound by the terms of the existing lease agreement and therefore Wiley was responsible for $2,200 in monthly rent and late fees.

“Generally, Chapter 535 provides landlords an efficient statutory remedy to collect past-due rents and regain possession of leased property through procedures established to achieve this purpose.” Bordeaux, 428 S.W.3d at 696. Section 535.070,4 titled “Purchaser of leased lands may recover possession!,]” provides as follows:

If any person purchases lands or tenements occupied at the time of such purchase by any tenant, lessee or sublessee, who shall, at any time thereafter, fail to pay rent to such purchaser, the person purchasing such property shall have the right, upon such failure, to commence proceedings before an associate circuit judge to recover rent and possession, under the terms of the prior owner’s lease, for unpaid rent accruing after the transfer of title. The right to commence proceedings pursuant to this section shall exist regardless of whether the transfer was by private foreclosure, tax or judicial sale, or by any other means. The provisions of chapter 441 and this chapter shall apply.

(Emphasis added.)

In order to recover rents pursuant to Section 535.070, Section 535.081 requires the “successor in title” to provide adequate and timely notice of the property’s transfer of ownership to the tenant. Section 535.081; Bordeaux, 428 S.W.3d at 697.5

Here, Otey was bound by the terms of the lease agreement already in place when he acquired title to the property. Although not a purchaser in the traditional sense, prior to January 2015, Lloyd was obligated to pay the mortgage on the property and [519]*519was granted the right to exclusively possess the property.

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Cite This Page — Counsel Stack

Bluebook (online)
519 S.W.3d 515, 2017 WL 2256753, 2017 Mo. App. LEXIS 471, Counsel Stack Legal Research, https://law.counselstack.com/opinion/otey-v-wiley-moctapp-2017.