| ICSC Legal Database - Cases | Monday, February 22, 1999 05:03 PM |
| Citation: |
| Frank B. Thomas Trust v. Imperial 400 Natl. Inc., 1990 WL 34872 (Ohio Ct. App. 1990). |
| Issue: |
| Whether the landlord's fourteen year failure to increase the initial rental amount by the price index provided for in |
| the lease barred the landlord from recovering any past due amounts resulting from such increases and/or from |
| adjusting rents prospectively? |
| Facts: |
| The landlord, assignee of a commercial lease, leased property to defendant for a 65 year term calling for |
| automatic adjustments to monthly rents every ten years based on a published price index. The lease, drafted by |
| the lessee, provided that the first adjustment go into effect in 1973. The plaintiff accepted the original monthly |
| rental amount of $650 for the entire ten year period and continued to accept that amount until 1987, four years |
| after the second adjustment was to go into effect. During 1987 the plaintiff notified the defendant that it was in |
| arrears with respect to the rental increase from 1983 and owed approximately $97,000 and, additionally, that |
| monthly rentals would be increased by $1,450 through 1993. Plaintiff brought suit to recover the arrearages and |
| defendant asserted the defenses of waiver, estoppel, and laches. the trial court granted summary judgment for |
| the plaintiff and the defendant appealed. |
| Holding: |
| Affirmed. The self-executing nature of the indexing provision did not require the landlord to make a demand for |
| the increased rentals, and, even if demand is generally required, the lease contained an express anti-waiver |
| provision which would be construed against the drafter, the lessee. The court rejected the defendant's assertion |
| that waiver, estoppel, and [aches inherently present a question of fact and, therefore, were not properly disposed |
| of by summary judgment. Ohio imposes a reciprocal duty of specificity on a non-moving party in providing |
| evidence to defend against a motion for summary judgment. The defendant presented no evidence of any plaintiff |
| action or forbearance which would raise a question of fact as to the issue of estoppel and [aches or which |
| would constitute a waiver of the terms of the contract. |
| Classification 1: |
| Landlord and Tenant |
| 00369 - Legal Update - Winter 1990 |
|