Opinion ID: 2001288
Heading Depth: 1
Heading Rank: 6

Heading: were the christensens entitled to reimbursement for improvements to the leased property on a theory of restitution?

Text: Christensens made improvements to the leased agricultural land, including installing a drainage ditch, removing rocks and trash, spraying pesticides, and repairing a well. It is a well-settled principle that, in the absence of an agreement that the landlord will pay for improvements or a statute imposing liability on the landlord, a tenant is not entitled to compensation for improvements made to the leasehold even though they cannot be removed by the lessee. Greeman v. Smith, 138 N.W.2d 433, 438 (N.D.1965) (citing Brown v. Ward, 221 N.C. 344, 20 S.E.2d 324, 326 (1942)); 49 Am.Jur.2d Landlord and Tenant § 902 (1995). Here, the lease agreement and Addendum do not address improvements to the land and there is no statute imposing liability on the landlord. Indeed, unless a tenant can remove his property without causing injury to the landlord's premises, SDCL 43-33-2 gives a landlord ownership rights in property affixed to his land by the tenant. SDCL 43-33-2 states: Except as provided by § 43-33-3, when a person affixes his property to the land of another without an agreement permitting him to remove it, the thing affixed belongs to the owner of the land unless he chooses to require the former to remove it. Nevertheless, Christensens claim they should receive restitution for the value of the improvements, because Martin's estate was unjustly enriched thereby. Unjust enrichment claims do not arise simply because the landlord benefits from the efforts of tenants; unjust enrichment implies illegal or inequitable behavior by the landlord in obtaining the benefits conferred by the tenant. In re Estate of Vangen, 370 N.W.2d 479, 480 (Minn.Ct.App.1985). For example, in Whitson v. Lende, 442 N.W.2d 267 (S.D.1989), we awarded restitution for renovation expenses incurred by tenants of a gas station and car wash. Importantly, when the parties negotiated the terms of the lease, the landlord orally agreed to complete many of the improvements ultimately performed by the tenants and to provide an allowance to the tenants for further improvements to the property. Id. at 268. As in Whitson, other jurisdictions typically require some showing that the landlord requested the improvements or agreed to reimburse the tenants for their expenses. Hertz v. Fiscus, 98 Idaho 456, 457, 567 P.2d 1, 2 (1977) (where landlords approved tenant's renovation of their property and failed to object to the work, tenants were entitled to recovery on theory of unjust enrichment); Gourley v. O'Donnell, 51 Or.App. 477, 626 P.2d 367, 371 (1981) (where tenant made improvements to land in contemplation of purchasing the property, rather than at request of landlord, tenant had no right to restitution); Lafary v. Lafary, 522 N.E.2d 916, 918 (Ind.Ct.App.1988) (landlord was not unjustly enriched where tenant made improvements on his own behalf, rather than on behalf of the landlord). In this case, Christensens do not assert that Martin or her beneficiaries requested they make these improvements to the property or otherwise suggested they would reimburse Christensens for these expenses. In the absence of any such inequitable actions by the landlord, the trial court properly denied restitution.