W.F.I., Inc. v. Heberts Business Furniture Co.

465 N.E.2d 1360, 12 Ohio Misc. 2d 1, 12 Ohio B. 136, 1983 Ohio Misc. LEXIS 432
CourtCity of Cleveland Municipal Court
DecidedOctober 28, 1983
DocketNo. 81 CVF 080220
StatusPublished
Cited by1 cases

This text of 465 N.E.2d 1360 (W.F.I., Inc. v. Heberts Business Furniture Co.) is published on Counsel Stack Legal Research, covering City of Cleveland Municipal Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
W.F.I., Inc. v. Heberts Business Furniture Co., 465 N.E.2d 1360, 12 Ohio Misc. 2d 1, 12 Ohio B. 136, 1983 Ohio Misc. LEXIS 432 (Ohio Super. Ct. 1983).

Opinion

Adrine, J.

This case came on for hearing on the complaint of the plaintiff and the answer of the defendant. At dispute are certain sums which the plaintiff alleges are due and owing to it under a lease agreement which it entered into with the defendant and which it now maintains the defendant breached. The defendant, for its part, maintains that it fully complied with its obligations under the lease. It contends further that it is the plaintiff which breached the agreement.

[2]*2With the issues thus met, and after review of the merits and the applicable authority, the court announces the following Findings of Fact and Conclusions of Law.

Findings of Fact

1. The plaintiff, W.F.I., Inc., is a closely held Ohio corporation, dealing primarily in real estate-related enterprises, including property management.

2. The defendant, Heberts Business Furniture Co., is a closely held Ohio corporation, dealing primarily in the retail sale of office and business furniture.

3. On May 9, 1980, the parties entered into a lease agreement for store space located in the 1900 Euclid Building, more precisely designated at 1852 Euclid Avenue, in the city of Cleveland, Ohio.

4. The lease covered a term of one year, commencing on May 1, 1980, and ending April 30, 1981.

5. Under the lease, the plaintiff and defendant herein were lessor and lessee respectively, and will be referred to as such herein.

6. The total amount due the lessor as rent under the terms of the lease was $44,400.

7. The lease called for the rent to be paid in equal monthly installments of $3,700.

8. The lease further provided that the lessor would provide heat for the leased space. However, water and electricity used by the lessee would be charged and billed to the lessee monthly.

9. Under the lease, all rent and other charges not paid when due were to bear interest at the rate of eighteen percent per annum.

10.The lease provided that the lessor could only be held liable for those injuries brought about by the lessor’s neglect. The same provision specifically relieved the lessor from any liability for damage or injury “caused by water, * * * dampness, * * * the bursting or leaking of pipes, plumbing, * * *.”

11. The holdover clause of the lease required that, unless a new agreement in writing was executed prior to expiration, the lessee’s continued occupation of the leased space after expiration, with the permission of the lessor, would constitute the creation of a year-to-year tenancy.

12. In the case of a holdover, the lease gave the lessor the right to set the new rental rate.

13. All notices to the lessee required under the lease were to be either personally delivered or sent by registered mail.

14. The lessor warranted the plumbing to the leased space in good repair at the time the lease was signed and agreed to maintain it in the same condition during the life of the agreement.

15. Under the lease, maintenance of the premises was the responsibility of the lessee.

16. The premises were rented “as is.”

17. Between August 4, 1980, and January 16, 1981, the lessee experienced eight problems involving water leaks in the leased premises.1

18. Various items of lessee’s stock were lost as a result of these problems.

19. It was necessary for lessee’s employees to divert their attention from other duties on these occasions to deal with problems caused by the leaks.

20. Lessee notified lessor’s representative of the problems as they occurred and lessor made attempts to correct the problems.

21. The total value of the goods and services lost to the lessee as a result of these problems was $2,175.84.

[3]*322. Lessee held over in the leased premises for one month until May 30, 1981.

23. The holdover was with the lessor’s consent.

24. Lessor set the new monthly rental at $4,144.

25. Notice of the increase in rent was not sent to the lessee by registered mail or personally delivered.

26. On September 30, 1981, lessee forwarded to the lessor a “final check” in payment of $6,904.05 in charges claimed outstanding by lessor at the time the premises were vacated. From the claimed amount the lessee deducted $229.90 in interest, $444 in increased rental and $2,189 in alleged damages suffered as a result of the water leaks. Thus, the face value of the aforementioned “final check” was $4,041.15.

27. Lessor declined to accept the “final check” from the lessee and returned it unnegotiated.

Conclusions of Law

Initially it seems appropriate, although perhaps unnecessary, to restate the obvious. A lease is a contract and should be interpreted and construed like any other contract. Glyco v. Schultz (M.C.1972), 289 N.E. 2d 919, 923. As such, the lease agreement under discussion here will be viewed in light of traditional contract law.

The defendant has not questioned the validity of the lease agreement which gives rise to the present dispute. Indeed, the lessee candidly admits that it owes some money to the lessor as a result of a one-month holdover in the leased premises. It disputes, however, the amounts which the lessor claims are due.

The lessee has advanced the following positions on what it considers to be the key issues to be resolved:

I.The lessee is not liable for the rental increase set by the lessor for the holdover period, from April 30, 1981 to May 30, 1981.

II. The lessor is liable for damages suffered by the lessee as a result of water leaks occurring in the leased premises during the term of the agreement.

III. The lessor had a duty to accept the lessee’s tendered “final check” in order to mitigate any damages which it might have suffered as a result of the defendant’s alleged breach of the lease agreement.

A determination of the correctness of the lessee’s position on each of these three key issues is dispositive of the ultimate issue, that issue being whether the lessee is obligated to the lessor for outstanding rents and fees, and if so to what extent. Therefore, each of the issues raised by the lessee’s positions will be separately examined and discussed.

I

At the end of the lease which is the subject of this suit the lessee held over in the leased premises for a period of approximately one month. According to the testimony, that extention was had with the acquiesence of the plaintiff.

Historically, any holdover by a lessee in a leased premises beyond the expiration date of the agreement could be treated by the lessor as an extension of the agreement. Gladwell v. Holcomb (1899), 60 Ohio St. 427. However, in the early part of this century, the Ohio Supreme Court modified the rule to provide that “* * * the parties are permitted to show what their true intention was, where the tenant remained in possession after expiration of his former term.” Bumiller v. Walker (1917), 95 Ohio St. 344, 351.

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Bluebook (online)
465 N.E.2d 1360, 12 Ohio Misc. 2d 1, 12 Ohio B. 136, 1983 Ohio Misc. LEXIS 432, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wfi-inc-v-heberts-business-furniture-co-ohmunictclevela-1983.