Lloyd v. Roosevelt Properties, Ltd.
2018 Ohio 3163
Ohio Ct. App.2018Background
- Tenant Susan Lloyd leased a Cleveland Heights one‑bedroom apartment from Roosevelt Properties for a 13‑month term starting December 2013; rent was $850/month and security deposit $900.
- On move‑in Lloyd reported no heat, and over months complained about inadequate heat, rodent presence, cigarette smoke infiltrating her unit, and discolored water; municipal code enforcement cited a rodent violation in a common laundry area.
- Lloyd paid December–February rent to landlord, then deposited March and April rent with municipal court and vacated April 17, 2014.
- Lloyd sued for negligence, breach of implied warranty of habitability, constructive eviction, breach of contract, and return of security deposit; landlord counterclaimed for unpaid rent. Case tried in common pleas court.
- Trial court ruled for Lloyd on warranty of habitability, constructive eviction, breach of contract, and found landlord wrongfully withheld the $900 security deposit; awarded $10,514.15 actual damages, $900 statutory, and $19,302.50 in attorney fees.
- On appeal the Eighth District affirmed liability (warranty/constructive eviction/contract) and that the deposit was wrongfully withheld, but reversed the attorney‑fee and excess compensatory damage awards and remanded for recalculation.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Breach of implied warranty of habitability (R.C. ch. 5321) | Lloyd: conditions (rats, insufficient heat, smoke, bad water) breached R.C. 5321.04 and landlord had notice | Roosevelt: conditions did not amount to code violations that would justify rescission/termination; no manifest weight support | Held: trial court not against manifest weight — credible evidence of rodents, heat problems, smoke and water issues; landlord had notice and failed to remedy |
| Constructive eviction / lease termination | Lloyd: landlord’s failures substantially interfered with possession, entitling lease termination and remedies under R.C. 5321.07 | Roosevelt: premises were habitable; no right to terminate | Held: Lloyd properly used R.C. 5321.07 remedies (rent deposit, termination); constructive eviction sustained |
| Breach of contract (lease) | Lloyd: landlord breached lease obligations and caused damages | Roosevelt: no breach with sufficient severity to support damages or termination | Held: breach of lease sustained as derivative of habitability violations; damages available under contract principles |
| Security deposit, double damages, and attorney fees (R.C. 5321.16) | Lloyd: deposit wrongfully withheld; entitled to double damages and fees | Roosevelt: contested scope of fees and relation to other claims; argued fees disproportionate | Held: landlord wrongfully withheld deposit (lease barred applying deposit to rent); tenant entitled to double damages on the wrongfully withheld amount and reasonable fees limited to work attributable to the deposit claim — trial court’s award of $19,302.50 was an abuse of discretion and must be limited; remand to recalculate compensatory damages by proper reduced‑rental‑value measure |
Key Cases Cited
- C.E. Morris Co. v. Foley Constr. Co., 54 Ohio St.2d 279 (Ohio 1978) (manifest‑weight standard for civil judgments)
- Eastley v. Volkman, 132 Ohio St.3d 328 (Ohio 2012) (standard for weighing evidence and manifest‑weight review)
- Seasons Coal Co. v. Cleveland, 10 Ohio St.3d 77 (Ohio 1984) (deference to trial court credibility findings)
- Smith v. Padgett, 32 Ohio St.3d 344 (Ohio 1987) (double damages and attorney‑fee framework under R.C. 5321.16)