Amherst Village Management v. Vestal, Unpublished Decision (10-27-2000)
Amherst Village Management v. Vestal, Unpublished Decision (10-27-2000)
Opinion of the Court
Initially, we note that appellee has not filed a brief in this appeal. Accordingly, pursuant to App.R. 18(C) we accept appellant's statement of the facts as correct. We have summarized those facts as follows.
Appellee operates the Amherst Village Apartments, a federally subsidized apartment complex in Bowling Green, Ohio. On November 20, 1998, appellant Sara Vestal and her then boyfriend, Josh Myers, entered into a rental agreement with appellee for the lease of unit 148 at Amherst Village Apartments. Under the terms of the rental agreement, Vestal and Myers' rent was subsidized under the "Section 8" program of the Department of Housing and Urban Development ("HUD"). Pursuant to a certification review of Vestal and Myers, they were responsible for rental payments of $136 per month and HUD paid the remaining portion of $502 per month. The tenants' portion of the rent was calculated solely on the basis of Josh Myers' income as Vestal was pregnant and caring for her and Myers' toddler. Vestal and Myers paid their rent through May 1999.
The rental agreement signed by the parties provides that rent was due on the first day of the month. Paragraph 5 of the agreement then states in relevant part:
"If the tenant does not pay the full amount of the rent shown in paragraph #3 by the end of the 5th business day of the month, the landlord may collect a fee of $5.00 on the 6th day of the month, thereafter, the Landlord may collect $1.00 for each additional day the rent remains unpaid during the month it is due. The landlord may not terminate this agreement for failure to pay late charges, but may terminate this agreement for non-payment of rent, as explained in paragraph #23."
Paragraph 23 sets forth the conditions for terminating the tenancy and reads in part:
"B. Any termination of this agreement by the landlord must be carried out in accordance with HUD regulations, State and Local Law and the terms of this agreement. The landlord may terminate this agreement for only:
"1. The tenant's material non-compliance with the terms of this agreement.
"* * *
"4. * * * The term Material Non-Compliance with the lease includes,
"* * *
"4. Non-payment of rent or any other financial obligation due under the lease beyond any grace period permitted under State Law. The payment of rent or any other financial obligation due under the lease after the due date but within the grace period permitted under State Law constitutes a minor violation."
In addition to these obligations, the lease provides in Paragraph 4 that the amount of rent the tenant pays may be changed during the term of the lease if: "The income, the number of persons in the tenant's household or other factors considered in calculating the tenant's rent change and HUD procedures provided that the tenant's rent or assistance payment be adjusted to reflect the changes." Paragraph 4 further provides that "The landlord agrees to implement changes in the Tenant's rent or tenant's assistance payment only in accordance with the time frames and administrative procedures set forth in HUD's handbooks, instructions and regulations related to administration of multifamily subsidy programs." Finally, Paragraph 16 of the lease agreement obligates the tenant to notify the landlord immediately if any household member moves out of the rental unit.
In late May 1999, Vestal went to Michelle Hitt and notified her that Myers was moving out of the apartment. Vestal told Hitt that Myers was leaving that day and that she wanted him off of the lease. Vestal testified that Hitt told her to come back after she had discussed the issue with Myers. Hitt, however, denied that Vestal had told her in May that Myers was leaving. Hitt further testified at the hearing below that on June 1, 1999, she posted on Vestal's door a note that read "I want to meet with you to go a [sic] few very important matters. Please do this within ten (10) days." The notice did not indicate what matters Hitt wanted to discuss, but in the hearing below, Hitt stated that the notice dealt with Myers' leaving. Neither Vestal nor Myers paid rent for the month of June 1999. Rather, on June 7, 1999, Myers went to Hitt and signed a statement in her presence which reads: "I am leaving Amherst and I am signing off the lease. I live at 228 S. College Dr. Apt. H."
Hitt testified that on June 14, 1999, she both mailed and delivered to Vestal's premises a notice to leave the premises. That notice requested that Vestal and Myers vacate the apartment by June 25, 1999 and listed the reason as non-payment of rent. The notice further warned Vestal and Myers that if they did not leave the premises an eviction action would be initiated against them. Vestal testified that she never received either the mailed or delivered notice to vacate.
On July 12, 1999, appellee filed a complaint in forcible entry and detainer against Vestal and Myers. Appellee also asserted a claim for the June and July rent, totaling $272, and for rent of $136 for the month of August and for each month thereafter that Vestal unlawfully detains appellee's property. The record reveals that the Bowling Green Municipal Court served the summons and complaint by ordinary mail on both Vestal and Myers on July 21, 1999. The bailiff also apparently served the defendants by posting copies of the summons and complaint at the residence. The process mailed to Myers, however, was returned with a notation "No forward order on file."1 Vestal testified at the hearing below that while she received the summons and complaint through the mail she did not receive the one that was allegedly posted on her apartment door.
Vestal answered the complaint with a general denial and further asserted an affirmative defense that appellee had breached the contract first by failing to perform the required rent recertification when she informed Hitt of a change in household income and composition in May 1999. Vestal asserted that if appellee had completed the recertification as required under the lease, she would have been current with her rental payments.
The matter came before the court for a hearing on September 2, 1999. Initially, Vestal, through counsel, informed the court that she was there on a special appearance and moved to dismiss the complaint for insufficiency of process. Vestal argued that service on her was insufficient in that it did not comply with Civ.Rs. 4.1(1) and 4.6. She further asserted that insofar as service on her complied with R.C.
Vestal also testified at the hearing below. Vestal insisted that she had told Hitt at the end of May that Myers was moving out that day. Hitt, however, did not mention anything about recertification. Vestal further denied ever receiving any of the notices allegedly posted on her door. She did, however, admit to having received the summons and complaint through the mail.
On September 29, 1999, the magistrate issued a decision on the FED action and Vestal's motion to dismiss. Initially, the court addressed the motion to dismiss and concluded that Vestal was properly served with process pursuant to R.C.
On October 12, 1999, Vestal filed objections to the magistrate's decision, contesting the findings on the service of process issue and the court's finding that Vestal was in default of her obligation to pay rent after appellee had been notified that Myers had left the apartment. On October 19, 1999, the trial court issued a decision and judgment entry on Vestal's objections which adopted the magistrate's decision in full. It is from that judgment that Vestal now appeals.
In her first assignment of error, Vestal asserts that the trial court erred in denying her motion to quash the summons and complaint. In particular, she argues that the Civil Rules control the service of process in FED actions and that R.C.
Section
Previously, the service of a summons and complaint in an FED action were clearly governed by the Civil Rules. Civ.R. 4.1(1) reveals that the basic method of service of original process in civil actions is by certified mail return receipt requested. Civ.R. 4.1(2) and (3) also allow personal and residence service where the plaintiff files a written request for such. Under residence service, however, service is only accomplished by leaving the process "at the usual place of residence of the person to be served with some person of suitable age and discretion then residing therein." Civ.R. 4.6(C) and (D) then provide that if the service by certified mail is refused or unclaimed, or if the service by personal or residence service is refused:
"* * * the clerk shall forthwith notify, by mail, the attorney of record or if there is no attorney of record, the party at whose instance process was issued. If the attorney, or serving party, after notification by the clerk, files with the clerk a written request for ordinary mail service, the clerk shall send by ordinary mail a copy of the summons and complaint or other document to be served to the defendant at the address set forth in the caption, or at the address set forth in written instructions furnished to the clerk."
However, effective March 30, 1999, R.C.
Vestal asserts that because the Civil Rules dealing with service of process do not frustrate the summary nature of FED actions, they must apply to such actions and R.C.
A forcible entry and detainer action "is a civil remedy provided by statute and intended to affect only the question of the present right to possess real property. `The purpose of the forcible entry and detainer statutes is to provide a summary, extraordinary, and speedy method for the recovery of possession of real estate in the cases especially enumerated by statute.'" _Housing Authority v. Jackson (1981),
Accordingly, the General Assembly was authorized to amend R.C.
In her second assignment of error, Vestal asserts that the trial court erred in granting appellee a writ of restitution when appellee breached its obligation under the lease and under HUD regulations to recertify her. Vestal contends that if appellee had recertified her as required, she would have owed no rent for June, July and August and appellee would have had no grounds upon which to evict her.
Vestal is correct in her assertion that appellee was obligated to recertify her upon learning of the change in appellee's household. Chapter 5 of the HUD Handbook titled Occupancy Requirements of Subsidized Multifamily Housing Programs (the "Handbook"), sets forth a landlord's/owner's duties with respect to recertifying tenants covered by the Section 8 program. Section 5-8 of the Handbook requires all tenants to immediately notify the owner of changes in the household composition, including if any household member moves out of the rental unit. Section 5-13 then reads:
"If the owner learns that the tenant's household has experienced one of the changes in income or household composition listed in paragraph 5-8, the owner must immediately notify the tenant in writing of the need to recertify. The owner's notice should refer the tenant to the lease clause which requires the interim review/adjustment, give the tenant 10 calendar days to respond to the notice and advise the tenant that his/her rent could be increased to the market rent if the 10 day deadline is not met."
Section 5-11 then sets forth the owner's responsibilities for processing an interim recertification. Under that section, upon learning of an interim change in the tenant's household composition, the owner must:
"2. Interview tenant to obtain information on income, assets, family composition and allowances, and SS numbers of all family members age 6 or older.
"3. Verify tenant's income, assets and allowances.
"4. Verify social security numbers of all family members age 6 or older not previously verified.
"5. Complete form HUD-50059 and applicable HUD-50059 worksheet.
"6. Have tenant sign the HUD-50059.
"7. Notify tenant of any rent increase resulting from the recertification."
After completing the interim recertification, the owner, pursuant to section 5-12 of the Handbook, must then notify the tenant of any change in rent or assistance payment. Section 5-12 further provides:
"If the tenant's rent decreases because of an interim adjustment, the owner must make the decrease effective the first day of the month commencing after the date of the action which caused the decrease. The owner does not have to give the tenant 30 days notice of a rent decrease."
Vestal contends that because she informed appellee at the end of May that Myers was moving out that day, appellee was obligated to recertify her as of the end of May. It is uncontested that, had appellee recertified Vestal for the month of June, appellant would have owed nothing toward her rent in that it would have been entirely subsidized. Accordingly, appellee could not have evicted Vestal for nonpayment of rent. Hitt, the apartment manager, however, testified that she did not learn of Myers' leaving until June 7, 1999, when he came into her office and signed the statement regarding his new address. In his decision, the magistrate found that Hitt "formally" learned of Myers leaving on June 7, 1999. This finding, however, does not answer the ultimate question with regard to recertification. That is, what day did Myers actually move out. Upon learning of his leaving, Hitt was obligated to investigate to determine the actual date Myers left and then to recertify Vestal based on that date. If he left in May, a recertification of Vestal would have indicated that she owed no rent for June. If, however, Myers left in June, Vestal and Myers jointly would be obligated for the $136.
Because a recertification was never conducted and because it was therefore never properly determined what portion of the rent Vestal owed for the months of June, July and August, we conclude that the trial court erred in granting appellee a writ of restitution on its FED action. Accordingly, the second assignment of error is well-taken.
On consideration whereof, the judgment of the Bowling Green Municipal Court granting appellee a writ of restitution is reversed and vacated. Costs of this appeal are assessed to appellee.
Peter M. Handwork, J., JUDGE
Richard W. Knepper, P.J., Mark L. Pietrykowski, J., JUDGE, CONCUR.
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