Fleet v. Webber Springs Owners Ass'n, Inc., 14-0637
| Decision Date | 23 April 2015 |
| Docket Number | No. 14-0637,14-0637 |
| Court | West Virginia Supreme Court |
| Parties | JAMES R. FLEET, JAMILA J. FLEET, AND JAMES LAMPLEY, Defendants Below, Petitioners v. WEBBER SPRINGS OWNERS ASSOCIATION, INC., Plaintiff Below, Respondent |
Appeal from the Circuit Court of Berkeley County
AFFIRMED, IN PART; REVERSED, IN PART; AND REMANDED
Charles Town, West Virginia
Bordas & Bordas, PLLC
Wheeling, West Virginia
Martin & Seibert, L.C.
Martinsburg, West Virginia
Trump & Trump, L.C.
Martinsburg, West Virginia
JUSTICE BENJAMIN dissents and reserves the right to file a dissenting opinion.
JUSTICE LOUGHRY concurs and reserves the right to file a concurring opinion.
1. Pursuant to W. Va. Code § 38-16-202(a) (1999) (Repl. Vol. 2011) and W. Va. Code § 38-16-201 (1999) (Repl. Vol. 2011), which must be read and applied together, consensual common law liens against real property are valid and enforceable in West Virginia.
2. Homeowners association assessments that are to be used for improving and/or maintaining common areas of a planned community, including, but not limited to, maintaining common roads and common recreational areas within the community, are an obligation primarily for personal, family, or household purposes, and, therefore, such assessments are "claims" pursuant to W. Va. Code § 46A-2-122(b) (1996) (Repl. Vol. 2006).Davis, Justice:
This case involves a dispute between a homeowners association that is a West Virginia Limited Expense Planned Community under W. Va. Code § 36B-1-203 (1994) (Repl. Vol. 2011) and certain homeowners who have failed to pay their association assessments. The parties disagree over the ability of a West Virginia Limited Expense Planned Community to assert a common law lien on real property for unpaid association assessments, attorney's fees, and costs. In addition, we are asked to decide whether an association's attempts to collect delinquent assessments are governed by the West Virginia Consumer Credit and Protection Act. The homeowners herein appeal the circuit court's grant of summary judgment resolving these issues in favor of the homeowners association. We conclude that W. Va. Code § 38-16-202(a) (1999) (Repl. Vol. 2011) and W. Va. Code § 38-16-201 (1999) (Repl. Vol. 2011) authorize a consensual common law lien against real property and that the unfair debt collection provisions of the West Virginia Consumer Credit and Protection Act do apply to a homeowners association's attempts to collect delinquent assessments. Accordingly, we affirm, in part; reverse, in part; and remand this case for further proceedings consistent with this opinion.1
Webber Springs Owners Association, Inc. ("Webber Springs"), plaintiff below and respondent herein, has elected to be a West Virginia Limited Expense Liability Planned Community ("LELPC"). In November 2003, the developer and declarant2 of Webber Springs recorded in the Berkeley County, West Virginia, land records, its declaration3 of conditions, covenants, restrictions, and easements for the planned community. Because Webber Springs declared itself to be an LELPC pursuant to W. Va. Code § 36B-1-203,4 itis exempt from all but a few specified provisions of the Uniform Common Interest Ownership Act, and its assessments5 are capped in accordance with W. Va. Code § 36B-1-203. The declaration recorded by Webber Springs provides that delinquent unpaid assessments are both liens against the real estate and the personal obligation of the owner.
The parties do not dispute that Webber Springs has the right to assess and collect certain fees and homeowners association assessments. Rather, the instant conflict revolves around Webber Springs ability to place a lien on the real property of Webber Springs homeowners whose dues are delinquent.
Mr. James Lampley ("Mr. Lampley") acquired title to real property within Webber Springs by deed dated February 25, 2005. The deed expressly provides that the conveyance is subject to "all those reservations, restrictions, easements and other matters of record . . . ." Similarly, James R. Fleet and Jamila J. Fleet ("the Fleets") acquired title to realproperty within Webber Springs by deed dated May 6, 2005. Their deed expressly provides that the conveyance is subject to "all rights, ways, utility line easements and restrictive covenants of record." In addition, Mr. Lampley and the Fleets signed a document titled "Planned Unity Development Rider" in which they agreed to promptly pay, when due, all homeowners' dues and assessments. Mr. Lampley and the Fleets (collectively, "the Homeowners") are the defendants below and petitioners herein.
It is undisputed that Mr. Lampley failed to pay his annual homeowners assessments for the years 2007 through 2011. Likewise, it is undisputed that the Fleets failed to pay their annual homeowners assessments for the years 2006 through 2011. As a consequence, Webber Springs recorded, in the Berkeley County Clerk's office, "notices of liens" purporting to create liens for the unpaid assessments, attorney's fees, and costs, on the real property owned by the Homeowners.6
On January 3, 2012, Webber Springs filed separate complaints against the Homeowners. The Homeowners responded by filing separate answers and counterclaims against Webber Springs asserting violations of the West Virginia Consumer Credit andProtection Act. The Homeowners then filed a combined motion to file an amended answer to include class action claims7 and to consolidate their cases. The circuit court granted the Homeowners' motion to consolidate their cases.
Thereafter, Webber Springs moved for summary judgment on the counterclaims asserted by the Homeowners. By order entered April 25, 2014, the Circuit Court of Berkeley County granted partial summary judgment in favor of Webber Springs as to all of the Homeowners' counterclaims. This appeal followed.
The instant matter is before this Court on appeal from an order granting partial summary judgment in favor of Webber Springs.8 Accordingly, our review is de novo. "Acircuit court's entry of summary judgment is reviewed de novo." Syl. pt. 1, Painter v. Peavy, 192 W. Va. 189, 451 S.E.2d 755 (1994). In conducting our de novo review, we are mindful that "[a] motion for summary judgment should be granted only when it is clear that there is no genuine issue of fact to be tried and inquiry concerning the facts is not desirable to clarify the application of the law." Syl. pt. 3, Aetna Cas. & Sur. Co. v. Federal Ins. Co. of New York, 148 W. Va. 160, 133 S.E.2d 770 (1963). Finally, to the extent that our resolution of this matter requires us to consider statutory provisions, our review is likewise de novo. "Where the issue on an appeal from the circuit court is clearly a question of law or involvingan interpretation of a statute, we apply a de novo standard of review." Syl. pt. 1, Chrystal R.M. v. Charlie A.L., 194 W. Va. 138, 459 S.E.2d 415 (1995). Applying the foregoing standards, we proceed to address the issues raised.
Two issues are raised in this appeal. First, the Homeowners assert that the circuit court erred by concluding that Webber Springs had valid common law liens against the Homeowners' real property. Second, the Homeowners argue that the circuit court erred by concluding that a homeowners associations' attempts to collect assessments are not subject to the West Virginia Consumer Credit and Protection Act. We address each of these issues in turn.
The Homeowners argue that the liens asserted by Webber Springs are invalid and unenforceable pursuant to W. Va. Code § 38-16-202(a). In this regard, the Homeowners contend that the circuit court erred by failing to interpret W. Va. Code § 38-16-202(a) as completely barring common law liens against real property, regardless of whether such liens are consensual. Webber Springs, on the other hand, contends that the Homeowners have misconstrued the statute. We agree.
Prior to examining the relevant statutes, we pause to note that "[t]he primary object in construing a statute is to ascertain and give effect to the intent of the Legislature." Syl. pt. 1, Smith v. State Workmen's Comp. Comm'r, 159 W. Va. 108, 219 S.E.2d 361 (1975). See also Syl. pt. 1, Pond Creek Pocahontas Co. v. Alexander, 137 W. Va. 864, 74 S.E.2d 590 (1953) (). However, this Court's authority to construe a statute is confined to only those statutes that contain an ambiguity. "A statute is open to construction only where the language used requires interpretation because of ambiguity which renders it susceptible of two or more constructions or of such doubtful or obscure meaning that reasonable minds might be uncertain or disagree as to its meaning." Hereford v. Meek, 132 W. Va. 373, 386, 52 S.E.2d 740, 747 (1949). See also Syl. pt. 5, State v. General Daniel Morgan Post No. 548, Veterans of Foreign Wars, 144 W. Va. 137, 107 S.E.2d 353 (1959) (); Syl. pt. 2, Pond Creek Pocahontas Co. v. Alexander, 137 W. Va. 864, 74...
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