Abrams v. Grenny Properties, L.L.C.
2016 Ohio 8303
| Ohio Ct. App. | 2016Background
- Abrams signed a residential lease with Grenny on Aug. 31, 2015; preprinted lease required $895 security deposit and $945 monthly rent.
- A separate “Utility Addendum” required a $600 utility deposit if water/sewer remained in landlord’s name.
- Abrams paid $1,780 in cash at signing; handwritten notations on the security agreement reflected modified terms (noting Abrams owed $25 balance and $600 utility deposit).
- Grenny accepted the $1,780 but did not deliver possession, asserting Abrams had not paid the full security deposit and had not transferred utilities.
- Abrams sued for return of the $1,780; Grenny counterclaimed. Trial court awarded Grenny $1,335 on its counterclaim and Abrams $345 (the difference).
- On appeal, the court considered whether the handwritten modifications and cash tender formed an enforceable contract obligating Grenny to deliver possession.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether handwritten modifications and cash payment created a binding modification of the lease | Abrams: his $1,780 cash tender plus handwritten notations modified the preprinted lease and constituted acceptance of a new agreement | Grenny: despite accepting cash, it never delivered possession because Abrams failed to pay full required amounts and transfer utilities per original lease | Held: The cash tender and handwritten terms constituted a counteroffer accepted by Grenny, creating a modified contract obligating Grenny to deliver possession |
| Whether Grenny was entitled to retain the payment as a nonrefundable deposit | Abrams: nonrefundable clause applied only after lease breach or late rent; he never took possession so never breached | Grenny: relied on security agreement/nonrefund provision because full contractual conditions were not met | Held: Nonrefund term did not apply where Abrams never took possession and did not breach; Grenny breached by failing to deliver possession after accepting payment |
Key Cases Cited
- Continental W. Condo. Unit Owners Assn. v. Howard E. Ferguson, Inc., 74 Ohio St.3d 501, 660 N.E.2d 431 (Ohio 1996) (contract interpretation reviewed de novo)
- Aultman Hosp. Assn. v. Community Mut. Ins. Co., 46 Ohio St.3d 51, 544 N.E.2d 920 (Ohio 1989) (clear, unambiguous contracts are enforced according to plain language)
- Kostelnik v. Helper, 96 Ohio St.3d 1, 770 N.E.2d 58 (Ohio 2002) (elements required for an enforceable contract)
- Foster v. Ohio State Univ., 41 Ohio App.3d 86, 534 N.E.2d 1220 (Ohio Ct. App. 1987) (acceptance that changes terms is a counteroffer)
Decision: Reversed trial court and remanded with instruction to enter judgment for Abrams for the full $1,780 (appellant to recover costs).
