Peoples v. Holley

908 N.E.2d 517, 181 Ohio App. 3d 203, 2009 Ohio 897
CourtOhio Court of Appeals
DecidedFebruary 27, 2009
DocketNo. 22296.
StatusPublished
Cited by3 cases

This text of 908 N.E.2d 517 (Peoples v. Holley) 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
Peoples v. Holley, 908 N.E.2d 517, 181 Ohio App. 3d 203, 2009 Ohio 897 (Ohio Ct. App. 2009).

Opinion

Brogan, Judge.

{¶ 1} Robert M. Holley, appellant, appeals the judgment of the Montgomery Country Common Pleas Court. The court found that he and Tanya Peoples, appellee, entered into an oral lease agreement under which he promised to pay monthly rent and she promised to allow him to live in her home. The court also *205 concluded that he was liable for conversion of Peoples’s jewelry and her daughter’s laptop computer. Holley contends that the statute of frauds bars enforcement of the parol lease. He also contends that the manifest weight of the evidence is against concluding that he is liable for conversion and is against the amount awarded in damages. We affirm the judgment.

{¶ 2} Holley began living with Peoples and her two daughters in 1997 in her home. In 2000, Peoples purchased another house. She and Holley orally agreed that he would pay her monthly rent in exchange for her allowing him to live in the new house with her. The agreement was never written down. They spent about a year renovating the new house before moving there in 2001.

{¶ 3} In 2006, Peoples filed a forcible-entry-and-detainer action against Holley. She alleged in her complaint that he was $7,000 in default under their oral lease agreement, and she sought restitution of her property. The trial court granted her restitution and scheduled for trial the issues of breach and damages.

{¶ 4} In February 2007, Peoples filed an amended complaint. She reiterated her claim that Holley had breached their oral rental agreement, which she said required him to pay half the mortgage and half the utilities while he lived in her home. And she added two claims of conversion for her missing jewelry and for her daughter’s missing laptop computer, which Holley had given to the girl. She also added a claim of unjust enrichment. Peoples asked the trial court to award her $15,000 in damages.

{¶ 5} After a bench trial the following April, the trial court found these facts:

{¶ 6} “1. Plaintiff (Ms. Peoples) and Defendant (Mr. Holley) were living together at 4047 Brenton Dr., Dayton, OH 45416 for 4 years.

{¶ 7} “2. On September 25, 2006 Plaintiff was granted restitution of the premises. Plaintiff and Defendant had entered into an oral lease agreement whereby Defendant would pay one half of Plaintiffs mortgage and utilities. Defendant left the premises owing the Plaintiff approximately $7,193.96 arrears on the rent and utilities.

{¶ 8} “3. After Defendant left the premises, Plaintiff was missing approximately $7,500 in jewelry. Some were gifts from the Defendant, some were from Plaintiffs mother and some were self purchased. Defendant stated that Plaintiffs children could have taken the jewelry.

{¶ 9} “4. After Defendant left the premises, a laptop computer worth approximately $1,500 was missing. Defendant stated that he only loaned the laptop computer to Plaintiffs children.

*206 {¶ 10} “5. Defendant provided services such as shoveling snow, yard work, painting and household repairs during his tenure on the premises. He did not babysit, pay school fees or buy groceries on a regular basis.”

{¶ 11} The trial court also made these conclusions of law:

{¶ 12} “1. The Court finds that Plaintiff is the true owner of the property located at 4047 Brenton Dr., Dayton, OH 45416.

(¶ 13} “2. The Court finds that Defendant as of the trial date had not paid any monies toward the arrears. No evidence of receipts such as bills paid, was offered to offset the amount of the arrears. (See Exhibits 1 and 2.)

{¶ 14} “3. The Court finds that the Defendant was responsible for the missing jewelry.

{¶ 15} “4. The Court finds that the Defendant gave the laptop to Plaintiffs children.

{¶ 16} “5. The Court finds that Defendant has failed to provide any written documentation or receipts for his performance of the various services and household repairs.

{¶ 17} “6. The Court finds that Plaintiff is entitled to $15,000 plus interest and costs in the above captioned matter.”

{¶ 18} Holley assigns two errors to the trial court’s judgment. His first assignment of error states:

{¶ 19} “The court erred in enforcing terms of an oral lease agreement, as the agreement is unenforceable and barred by the statute of frauds.”

{¶ 20} We begin by observing that Holley does not dispute the existence of an agreement with Peoples. 1 He does not dispute that he promised to pay what is in essence monthly rent or that he failed to keep this promise each month that he lived in Peoples’s home. He argues only that the agreement is unenforceable under the statute of frauds because it does not exist in a writing. This is a question of law. “On appeal, questions of law are reviewed de novo.” Avent v. Avent, 166 Ohio App.3d 104, 2006-Ohio-1861, 849 N.E.2d 98, at ¶ 16.

{¶ 21} In her original complaint, Peoples (the landlord) asked the trial court to order Holley (the tenant) from her home because he had failed to pay rent. The trial court granted restitution and held a bench trial on the issue of unpaid rent, which it awarded. Holley argues that the award of unpaid rent here is the result of the trial court’s enforcement of a parol lease, and is contrary to the statute of *207 frauds. Ohio law subjects a lease of real property to its statute of frauds in two ways. A lease may not be legally assigned or granted without a written instrument. R.C. 1335.04. And no action may be brought upon a lease agreement unless the agreement is in writing and signed by the party against whom the action is brought. R.C. 1335.05. Here, the trial court found that only an oral lease existed between Peoples and Holley. Consequently, Holley is undoubtedly correct that their agreement here is legally unenforceable. 2

{¶ 22} Yet the trial court did not err, because the damage award is based not on the enforceability of the parol lease but on the enforceability of an implied-in-law tenancy. “It is well settled that where a purported lessee takes possession under a defectively-executed lease and pays rent, a tenancy will be implied and is subject to all of the terms of the purported lease except duration.” Kilcoyne Properties, L.L.C. v. Fischbach, Licking App. No. 03CA072, 2004-Ohio-7272, 2004 WL 3563912, at ¶ 40. The same is true of an unenforceable parol lease. See Restatement of Law 2d, Property (1976) 82-83, Section 2.3 and Comment a; Manifold v. Schuster (1990), 67 Ohio App.3d 251, 255, 586 N.E.2d 1142. When a tenant pays rent, accepted by his landlord, the at-will tenancy becomes a periodic tenancy. Id. The “period” depends on the orally agreed-to terms of payment. The Ohio Supreme Court held in Lithograph Bldg. Co. v. Watt

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Bluebook (online)
908 N.E.2d 517, 181 Ohio App. 3d 203, 2009 Ohio 897, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peoples-v-holley-ohioctapp-2009.