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Keywords

leaseeminent domain
leaseeminent domain

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Carroll Weir Funeral Home, Inc. v. Miller, In re Appropriation of Easement for Highway Purposes, 2 Ohio St.2d 189, 207 N.E.2d 747, 31 O.O.2d 402

Facts

On August 2, 1954, the owners of a property in Columbus, Ohio, entered into a 25-year lease with Carroll Weir Funeral Home, Inc. The lease contained a provision allowing the lessors to terminate the lease if the property was condemned by public authority. In 1961, the Director of Highways initiated proceedings to appropriate the leased premises, and the lessors exercised their option to terminate the lease shortly thereafter. The court ordered the state to deposit compensation for the property, leading to the dispute over the lessee's entitlement to the funds.

On August 2, 1954, the owners of a property in Columbus, Ohio, entered into a 25-year lease with Carroll Weir Funeral Home, Inc. The lease contained a provision allowing the lessors to terminate the lease if the property was condemned by public authority.

Issue

Whether the lessee is entitled to any part of the funds paid by the state for the appropriation of the property it occupied under the lease.

Whether the lessee is entitled to any part of the funds paid by the state for the appropriation of the property it occupied under the lease.

Rule

Where a lease provides that the lessor may terminate the lease if the property is taken by eminent domain, and the lessor properly exercises this option, the lessee no longer has a property right in the premises and is not entitled to compensation.

Where a lease provides that the lessor may terminate the lease if the property is taken by eminent domain, and the lessor properly exercises this option, the lessee no longer has a property right in the premises and is not entitled to compensation.

Analysis

The court analyzed the lease's language, particularly the phrase 'condemned by public authority,' and determined that it was intended to encompass appropriations made under eminent domain. The court found that the lessors had properly exercised their option to terminate the lease upon the appropriation of the property, which eliminated any property rights the lessee had in the premises. The court emphasized that the terms of the lease were clear and unambiguous, thus supporting the lessors' position.

The court analyzed the lease's language, particularly the phrase 'condemned by public authority,' and determined that it was intended to encompass appropriations made under eminent domain.

Conclusion

The Supreme Court affirmed the lower court's ruling, concluding that the lessee had no right to share in the condemnation award due to the lessors' valid termination of the lease.

The Supreme Court affirmed the lower court's ruling, concluding that the lessee had no right to share in the condemnation award due to the lessors' valid termination of the lease.

Who won?

The lessors prevailed in the case because the court found that the lease clearly allowed them to terminate the agreement upon condemnation, thereby barring the lessee from claiming any part of the compensation.

The lessors prevailed in the case because the court found that the lease clearly allowed them to terminate the agreement upon condemnation, thereby barring the lessee from claiming any part of the compensation.

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