T.W.I.W. Inc v. Rhudy

• Decision Date: 29 June 1981
• Docket Number: No. 13194.,13194.
• Citation: 630 P.2d 753,96 N.M. 354
• Parties: (The Way It Was, Inc.) T.W.I.W., Inc., Plaintiff-Appellee, v. Steven J. RHUDY, Defendant-Appellant.
• Court: New Mexico Supreme Court

630 P.2d 753

96 N.M. 354

(The Way It Was Inc.) T.W.I.W., Inc., Plaintiff-Appellee,

v.Steven J. RHUDY, Defendant-Appellant.

No. 13194.

Supreme Court of New Mexico.

Date: June 29, 1981.

Santiago R. Chavez, Taos, for defendant-appellant.

Robert S. Skinner, Raton, for plaintiff-appellee.

OPINION

FEDERICI, Justice.

Suit was brought in the District Court of Colfax County by appellee, The Way It Was, Inc. (T.W.I.W.) for unlawful detainer and nonpayment of rent and gas utility expenses on a rental unit located in Eagle Nest, New Mexico. The court found for T.W.I.W. in the amount of $1,148.72, plus costs, for back rent and a utility bill. Appellant (Rhudy) appeals. We affirm in part and reverse in part.

The premises were rented to Rhudy in August of 1979 under an oral month-to-month lease. The parties agree that rental was $175 per month. They disagree as to whether T.W.I.W. was to supply Rhudy with a heater in the rental unit. They also disagree as to whether Rhudy was to pay the gas utility bill. Finally, they disagree as to whether any of several notices to quit from T.W.I.W to Rhudy were effective. The issues we discuss on appeal are:

I. Whether T.W.I.W. was required to provide reasonable heat for the premises;

II. Whether any of the notices to quit from T.W.I.W. to Rhudy were effective;

III. Whether there is substantial evidence to support the trial court's finding and conclusion that Rhudy owed T.W.I.W. $273.72 for gas; and

IV. Whether the trial court exercised independent discretion in preparing its findings and conclusions.

I.

Rhudy contends that the implied warranty of habitability is in effect in this State and he had a right to abate the rent because T.W.I.W. did not supply reasonable heat for the rental unit.

This Court held in Barham v. Baca, 80 N.M. 502, 458 P.2d 228 (1969), that there is no implied warranty of habitability in New Mexico. However, the Legislature enacted the Uniform Owner-Resident Relations Act, by 1975 N.M. Laws, ch. 38, §§ 1-54 (§§ 47-8-1 to 47-8-51, N.M.S.A. 1978), which encompasses the issues presented on appeal. The section applicable to Rhudy's complaint of lack of heat is Section 47-8-20. That section provides:

A. The owner shall:

(1) substantially comply with requirements of the applicable minimum housing codes materially affecting health and safety;

(2) make repairs and do whatever is necessary to put and keep the premises in a safe condition as provided by applicable law, and rules and regulations as provided in Section 23 [47-8-23 NMSA 1978] of the Uniform Owner-Resident Relations Act;

(3) keep common areas of the premises in a safe condition;

(4) maintain in good and safe working order and condition electrical, plumbing sanitary, heating, ventilating, air conditioning and and other facilities and appliances, including elevators, if any, supplied or required to be supplied by him;

(5) provide and maintain appropriate receptacles and conveniences for the removal of ashes, garbage, rubbish and other waste incidental to the occupancy of the dwelling unit and arrange for their removal from the appropriate receptacle and

(6) supply running water and a reasonable amount of hot water at all times and reasonable heat except where the building that includes thedwelling unit is not required by law to be equipped for that purpose, or the dwelling unit is so constructed that heat or hot water is generated by an installation within the exclusive control of the resident and supplied by a direct public utility connection.

B. If there exists a minimum housing code applicable to the premises, the owner's maximum duty under this section shall be determined by Paragraph (1) of Subsection A of this section. The obligations imposed by this section are not intended to change existing tort law in the state.

Under Subsection (B), if there exists a minimum housing code, the owner must at least substantially comply with it under Subsection (A)(1). We have not been directed to any applicable housing code by either of the parties, though it was stated at trial that there was no housing code in Eagle Nest.

While there may be no local housing code, we are aware of a state building code, adopted by the Construction Industries Division, which sets "minimum standards to safeguard... health [and] property... by regulating and controlling the... use and occupancy,... and maintenance of all buildings and structures within this jurisdiction...." Uniform Building Code (U.B.C.) § 102 (1979 ed.). Section 47-8-3(C) defines "codes" within the Act as including building codes.

This Court may take judicial notice of agency rules and regulations. See Eastern Navajo Ind., Inc. v. Bureau of Revenue, 89 N.M. 369, 552 P.2d 805 (1976), cert. denied, 90 N.M. 7, 558 P.2d 619 (1976), cert. denied, 430 U.S. 959 97 S.Ct. 1610, 51 L.Ed.2d 810 (1977). We need not determine whether this is such a situation since there was not a sufficient development of the facts in the trial court to determine the applicability of the U.B.C. We therefore remand this question to the trial court to determine whether any housing codes or building codes apply to the premises involved here. If any code does apply, T.W.I.W. is required to substantially comply with it for purposes of the Uniform Owner-Resident Relations Act.

If no housing code or building code applies to the premises, T.W.I.W.'s obligations to Rhudy are set forth in Subsections 47-8-20(A)(2) through (6). Subsections (2) through (5) require the owner to provide certain minimum conditions in the dwelling. Subsection (6) requires the owner to "supply... reasonable heat except where the building that includes the dwelling unit is not required by law to be equipped for that purpose." (Emphasis added.)

The underlined language above may be reasonably interpreted to mean that unless there is a law requiring the owner to supply reasonable heat, the owner need not supply it. On the other hand, it may mean that the owner is required to provide reasonable heat unless there is some law specifically exempting him from providing it. Under the first construction it appears the burden of demonstrating a law requiring reasonable heat is upon the resident, while under the second construction, the burden of showing a law exempting the dwelling from the general requirement of reasonable heat is upon the owner.

The statute is ambiguous and we must resort to rules of statutory construction. We start with the proposition that a statute should be interpreted to mean what the Legislature intended it to mean and to accomplish the ends it sought to accomplish. State ex rel. Newsome v. Alarid, 90 N.M. 790, 568 P.2d 1236 (1977). In this case, the statute is part of an Act encompassing several statutes. Legislative intent is determined by looking to the Act as a whole. Arnold v. State, 94 N.M. 381, 610 P.2d 1210 (1980). The Legislature has expressed its intent in this Act. Section 47-8-2 states:

The purpose of the Uniform Owner-Resident Relations Act [47-8-1 to 47-8-51 NMSA 1978] is to simplify, clarify, modernize and revise the law governing the rental of dwelling units and the rights and obligations of owner and resident, and to encourage the owners and the residents to maintain and improve the quality of housing in New Mexico. (Emphasis added.)

State law prior to enactment of this Act did not require owners to provide those items listed in Section 47-8-20. See Barham v. Baca, supra. Section 47-8-20 lists some of the "improvements" the Legislature required, including providing reasonable heat.

The Act is remedial and in derogation of the common law. It clearly modifies the common law concerning certain standards of quality which must be maintained in rental housing. Its application must be liberally construed. Albuquerque Hilton Inn v. Haley, 90 N.M. 510, 565P.2d 1027 (1977). We hold that the Legislature intended to require owners to provide reasonable heat unless they could show some specific law exempting them from the requirement.

We are further persuaded that this is the proper interpretation of Section 47-8-20(A)(6), because the alternative interpretation renders Subsection (6) mere surplusage.

Subsections 47-8-20(A)(1) and (B) require owners to comply with housing and building codes. Subsections 47-8-20(A)(2) through (6) remain as minimum standards if there is no applicable code. It does not make sense to read Subsection (A)(6) as not requiring reasonable heat unless there is a law requiring it. The only law which would require heat, other than this Act, is a housing or building code. If a housing or building code applies, we would never get to Subsection (A)(6) because Subsection (A)(1) would apply. This would make Subsection (A)(6) mere surplusage. Statutes must be construed so that no part of the statute is rendered surplusage, if possible. Stang v. Hertz Corporation, 81 N.M. 69, 463 P.2d 45 (Ct.App. 1969), aff'd., 81 N.M. 348, 467 P.2d 14 (1970).

For these reasons, we construe Subsection 47-8-20(A)(6) as placing the burden upon the owner to show that a law exists which exempts him from providing reasonable heat for the resident. Since the trial court did not impose this burden upon the owner, the owner did not have an opportunity to present evidence on this issue. We reverse and remand to the trial court on this issue so that evidence can be taken upon which to decide whether reasonable heat was required in this case, and whether it was provided.

II.

In deciding whether a notice to quit is effective, we must first establish the periodic rental dates. The trial court made the following finding: "On and prior to November 4, 1979, [Rhudy] occupied as a residence premises owned by [T.W.I.W.] located in Eagle Nest, New Mexico, on a month-to-month tenancy." This finding is sufficiently clear for us to conclude that the trial court found that the periodic rental date commenced on the fourth day of each month. We have reviewed the record and this finding is supported by substantial evidence.

Appellant...