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.
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 declarant
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 real property 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.
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 and Protection Act. The Homeowners then filed a combined motion to file an amended answer to include class action claims
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.
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) ("The basic and cardinal principle, governing the interpretation and application of a statute, is that the Court should ascertain the intent of the Legislature at the time the statute was enacted, and in the light of the circumstances prevailing at the time of the enactment."). However, this Court's authority to construe a
Pursuant to the plain language of W. Va.Code § 38-16-202(a), "[a] common law lien against real property is invalid and is not recognized or enforceable in this state." However, the foregoing statute may not be read in isolation. "Statutes which relate to the same subject matter should be read and applied together so that the Legislature's intention can be gathered from the whole of the enactments." Syl. pt. 3, Smith v. State Workmen's Comp. Comm'r, 159 W.Va. 108, 219 S.E.2d 361 (1975). See also Syl. pt. 5, in part, Fruehauf Corp. v. Huntington Moving & Storage Co., 159 W.Va. 14, 217 S.E.2d 907 (1975) ("Statutes which relate to the same persons or things, or to the same class of persons or things, or statutes which have a common purpose will be regarded in pari materia to assure recognition and implementation of the legislative intent."). Thus, W. Va.Code § 38-16-202(a) must be read and applied along with an accompanying statute contained within Article 16 of Chapter 38 providing that,
W. Va.Code § 38-16-201 (emphasis added). The plain language of W. Va.Code § 38-16-201(3) declares that, "[r]egardless of whether such liens may also be considered to be common law liens," there is "nothing" in article 16 that is intended to affect "[c]onsensual liens now or hereafter recognized under the common law of this state." (Emphasis added). Reading the proscription of common law liens against real property contained in W. Va.Code § 38-16-202(a) in light of the plainly worded provision of W. Va.Code § 38-16-201(3), it is irrefutable that W. Va. Code § 38-16-202(a) was not intended by the Legislature to affect consensual common law liens.
This conclusion is in line with a recent memorandum decision handed down by this Court in which we found that a homeowners association's lien for unpaid assessments was valid because it was consensual:
Based upon our analysis of the relevant statutes, we now expressly hold that, 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.
In the instant case, the circuit court found that the liens at issue are consensual common law liens. Utilizing reasoning similar to that expressed by this Court in DeBlasio, the circuit court concluded that the Homeowners' deeds conveyed property subject to the "Declaration of Conditions, Covenants, Restrictions and Easements" recorded by Webber Springs and, therefore, provided the requisite consent for a valid common law lien.
The Homeowners contend that the liens at issue are not consensual because the Homeowners never granted consent through an authenticated document and never signed any deed. In this regard, the Homeowners point out that the deeds are from, and signed only by, the grantor of the property. We reject this argument. The deed conveying real property to the Fleets expressly provided that the conveyance was subject to "all rights, ways, utility line easements and restrictive covenants of record." (Emphasis added). Similarly, the deed conveying property to Mr. Lampley contained a provision expressly making the conveyance subject to "all those reservations, restrictions, easements and other matters of record in the aforesaid Clerk's Office...."
The Homeowners additionally contend that, even if Webber Springs had a valid consensual lien for unpaid assessments, it would not have a common law lien for attorney's fees and costs. Because the Homeowners rely on an application of the West Virginia Consumer Credit and Protection Act to support this argument, we will address the same below in our discussion of the applicability of the Consumer Credit and Protection Act.
The Homeowners argue that the circuit court erred in concluding that the West Virginia Consumer Credit and Protection Act ("WVCCPA") does not apply to the debt collection practices of Webber Springs, and in making the alternative finding that, even if the WVCCPA did apply, the Homeowners' counterclaims would be time-barred by the one-year limitations period provided in W. Va.Code § 46A-5-101 (1996) (Repl. Vol. 2006). Instead, the Homeowners, joined by Amicus Curiae, the West Virginia Association for Justice, contend that the unfair debt collection provisions of the WVCCPA apply
Webber Springs, on the other hand, argues that the assessments subject to its collection efforts do not qualify as a "claim" even under the broad definition utilized in the unfair debt collection provisions of the WVCCPA. In this regard, Webber Springs characterizes the assessments as being for community purposes, and not "primarily for personal, family or household purposes" as the statutory definition of a "claim" requires. W. Va. Code § 46A-2-122(b) (1996) (Repl. Vol. 2006). Furthermore, Webber Springs asserts that, because the Homeowners' counterclaims do not fall within the WVCCPA, they are barred by the two-year general statute of limitation found in W. Va.Code § 55-2-12 (1959) (Repl. Vol. 2008).
"This Court has recognized that the CCPA is a remedial statute intended to protect consumers from unfair, illegal and deceptive business practices, and must be liberally construed to accomplish that purpose." Harper v. Jackson Hewitt, Inc., 227 W.Va. 142, 151, 706 S.E.2d 63, 72 (2010). See also Barr v. NCB Mgmt. Servs., Inc., 227 W.Va. 507, 513, 711 S.E.2d 577, 583 (2011) (recognizing "the remedial purposes of the WVCCPA, and the liberal construction we have historically afforded this Act").
The unfair debt collection provisions of the WVCCPA are codified at W. Va.Code §§ 46A-2-122 through 129a. There are certain definitions applicable to only those nine sections. Thus, for purposes of the unfair debt collection provisions of the WVCCPA, the term "consumer" is broadly defined to mean "any natural person obligated or allegedly obligated to pay any debt." W. Va. Code § 46A-2-122(a) (emphasis added). A "debt collector" for purposes of the specified sections also is broadly defined to be "any person or organization engaging directly or indirectly in debt collection. The term includes any person or organization who sells or offers to sell forms which are, or are represented to be, a collection system, device or scheme, and are intended or calculated to be used to collect claims." W. Va.Code § 46A-2-122(d) (emphasis added). The plain language
W. Va.Code § 46A-2-122(b) (emphasis added).
Relevant to our determination of whether the assessments sought by Webber Springs are primarily for personal, family, or household purposes is the asserted reason for the assessments. The Declaration filed by Webber Springs to establish the Webber Springs community expressly sets out the purpose of the assessments as follows:
While this Court has not addressed whether the unfair debt collection provisions of the WVCCPA apply in the context of homeowners association assessments, this issue has been addressed by federal courts interpreting the federal Fair Debt Collection Practices Act ("FDCPA"). Notably, the FDCPA definition of a "debt" is essentially identical to the definition of a "claim" set out in W. Va.Code § 46A-2-122(b). Pursuant to the FDCPA,
15 U.S.C. § 1692a(5) (2010) (2012 ed.). Federal courts have found the FDCPA to be applicable to the collection of association fees. In Newman v. Boehm, Pearlstein & Bright, Ltd., 119 F.3d 477, 479, the court found that "an assessment owed to a homeowners or condominium association qualifies as a `debt' under the Fair Debt Collection Practices Act." The Newman court reasoned that
119 F.3d at 481. Finally, the Newman court explained that
Id. See also Ladick v. Van Gemert, 146 F.3d 1205, 1205 & 1207 (10th Cir.1998) (concluding that "assessment owed to a condominium association qualifies as a `debt' within the meaning of the Fair Debt Collection Practices Act" based upon express finding that, "although the assessment at issue here is used to maintain and repair the common area, it nevertheless has a primarily personal, family, or household purpose."); Williams v. Edelman, 408 F.Supp.2d 1261, 1266 (S.D.Fla.2005) (concluding that condominium assessments are debt within meaning of FDCPA); Dikun v. Streich, 369 F.Supp.2d 781, 785 (E.D.Va.2005) (observing that "[p]roperty owners association assessments for a plaintiff's residence are debts subject to the FDCPA"); Fuller v. Becker & Poliakoff, P.A., 192 F.Supp.2d 1361, 1368 (M.D.Fla. 2002) (explaining, "[l]ike the condominiums in Newman, the interests that Plaintiffs bought in the RV park were for personal or family purposes. Also, like the past-due assessments in Newman, Plaintiffs' maintenance assessments arose out of the purchase of the interest in the RV park, and the assessments are used to maintain the park for the benefit of the park; thus, the assessments are for personal or family purposes. Moreover, the maintenance assessments are obligations of [sic] arising out [of] the Plaintiffs' transactions in purchasing the interests in the RV park. Therefore, the Court finds that the maintenance assessments that the Association sought to collect ... are debts subject to the FDCPA."); Caron v. Charles E. Maxwell, P.C., 48 F.Supp.2d 932, 934 (D.Ariz. 1999) (adopting Newman reasoning that homeowners' "assessments are collected in order to improve and maintain commonly-owned
We agree with the reasoning of the federal courts interpreting a nearly identical statute. Therefore, this Court holds that 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). It follows, then, that because the Homeowners are consumers, because Webber Springs is a debt collector, and because the assessments are claims, the unfair debt collection provisions of the WVCCPA do apply to this matter. Thus, the circuit court erred in granting partial summary judgment in favor of Webber Springs based upon its erroneous conclusion that the WVCCPA was not applicable. Likewise, the circuit court erred in finding that the Homeowners' WVCCPA counterclaims are barred by the statute of limitations. The counterclaims of the Homeowners are not time-barred. See W. Va.Code § 46A-5-102 ("Rights granted by this chapter may be asserted as a defense, setoff or counterclaim to an action against a consumer without regard to any limitation of actions." (emphasis added)).
Because the circuit court ruled that the WVCCPA did not apply, that court has made no rulings purporting to resolve the Homeowners' specific claims under the WVCCPA, including their claim that Webber Springs is prohibited from collecting attorney's fees and costs. Accordingly, we decline to address the Homeowners' contention that Webber Springs is prohibited from collecting attorney's fees and costs as such a decision by this Court would be advisory. "[T]his Court is not authorized to issue advisory opinions[.]" State ex rel. City of Charleston v. Coghill, 156 W.Va. 877, 891, 207 S.E.2d 113, 122 (1973) (Haden, J., dissenting).
For the reasons stated in the body of this opinion, 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 WVCCPA 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.
Affirmed, in part; Reversed, in part; and Remanded.
Justice BENJAMIN dissents and reserves the right to file a dissenting opinion.
Justice LOUGHRY concurs and reserves the right to file a concurring opinion.
LOUGHRY, Justice, concurring:
Homeowners associations are typically run by a few resident volunteers who serve as officers or on boards of such associations and who act to ensure that the covenants and restrictions of the housing development are being met, including the payment of association assessments. The funds generated by those assessments are then used by the association to accomplish vital tasks that inure to the benefit of all homeowner members, such as road maintenance, as in the case at bar. While the unfair debt collection provisions of the West Virginia Consumer Credit and Protection Act ("WVCCPA") set forth a broad definition of the term "claim,"
Homeowners associations, which exist for the mutual benefit of all homeowners, are typically run by homeowners who either volunteer or are elected to serve as officers of the organization. The assessments collected by those associations establish a fund necessary for the maintenance of the housing development's common areas. Importantly, such fees do not in any respect serve as a profit-generator. Indeed, a homeowners association's efforts to collect those fees arise out of the obligation to ensure that the maintenance of the community is accomplished in a manner that is equally borne by all those who benefit therefrom. Consequently, a construction of the unfair debt collection provisions of the WVCCPA that permits homeowners, who benefit daily from the maintenance efforts of the homeowners association, to not only selfishly refuse to pay their assessments, but then to generate a lawsuit under the WVCCPA as a result of the association's efforts to collect the delinquent assessments, is simply untenable in my view.
Consider the practical effect of such an application of the WVCCPA. A dilatory homeowner refuses to pay his or her association fees, resulting in collection efforts by the association. The homeowner then initiates a claim against the association and its volunteer officers based on alleged violations of the WVCCPA. The association's officers believed they were fulfilling their obligation to all homeowners through their efforts to secure payment of the assessments by the delinquent homeowner, who was enjoying the amenities and maintenance of the development made possible by the responsible, assessment-paying homeowners. Even if unsuccessful, the delinquent homeowner will have caused the association to incur legal fees and costs in defending against the action for which it may or may not have insurance coverage. Where it does not, or where coverage is insufficient, those expenses will likely result in a special assessment.
Certain federal courts, including the Fourth Circuit, have construed the federal Fair Debt Collection Practices Act ("FDCPA") to require a debt to be a "consumer debt." See Mabe v. G.C. Services Limited Partnership, 32 F.3d 86, 88 (4th Cir.1994) (finding that child support obligation was not a "debt" under the FDCPA
Given the broad language of certain definitions contained within the unfair debt collection provisions of the WVCCPA, I begrudgingly concur in the majority's decision that those provisions apply to a homeowners association's attempts to collect delinquent assessments. However, I urge the Legislature to review the policy considerations behind the applicability of the WVCCPA to such assessments and other similar non-consumer debts.
BENJAMIN, J., dissenting:
I dissent because this Court has no jurisdiction to hear an interlocutory appeal, which means this appeal should have been dismissed as improvidently granted.
In the case before us, the order being appealed was the grant of summary judgment to the respondent homeowners' association on the petitioner's counterclaims. This order did not address or enter judgment on the respondent's claims for past due assessments, attorney fees or costs. Nothing in this order professes to, purports to or otherwise claims to address the respondent's claims. The order merely resolved the counterclaims of the petitioner and left for resolution the underlying collection action instituted by the respondent.
The majority makes short work of the lack of jurisdiction, positing in footnote 8 that despite clear precedent and other authority in the form of this Court's rules and a statute, this order "approximates a final order in its nature and effect." The majority makes this statement with the knowledge that the underlying claim of the respondent remains unsettled and the only portion of this case that was affected by the ruling was the counterclaim of the petitioner.
Under our rules and by statute, there must be a full and final judgment on all claims and parties before a party may appeal a final order of a circuit court. See W. Va.Code § 58-5-1; see also W. Va. R. Civ.P 54(b) (authorizing entry of a final judgment in accordance with the specification of § 58-5-1 but instructing that "any order or other form of decision, however designated, which adjudicates fewer than all claims or the rights and liabilities of fewer than all of the parties shall not terminate the action as to any of the claims or parties") (emphasis added).
Further, we held in Syl. pt. 3 of James M.B. v. Carolyn M., 193 W.Va. 289, 456 S.E.2d 16 (1995), that
As recognized by the majority, there are instances where an order "approximates a final order in its nature and effect...." Syl. pt. 1, in part, State ex rel. McGraw v. Scott Runyan Pontiac-Buick, 194 W.Va. 770, 461 S.E.2d 516 (1995). Unfortunately, this is not one of those cases because the underlying claim of the respondents was never addressed.
This is clearly an interlocutory appeal, one that should have been dismissed as improvidently granted. I respectfully dissent from the opinion of the majority.