SER Patrick Morrisey, Attorney General v. Copper Beech Townhome Communities
239 W. Va. 741
| W. Va. | 2017Background
- Attorney General sued Copper Beech, a large residential landlord, alleging lease fees (e.g., non-refundable redecorating fee, late rent fee, collection/attorney/dishonored-check fees, receipt fees, multiple-check fees) violated the West Virginia Consumer Credit and Protection Act (CCPA).
- Circuit Court certified the question whether the CCPA (specifically debt-collection provisions, W.Va. Code §§ 46A-2-122 to -129a, and unfair/deceptive practices provisions, W.Va. Code §§ 46A-6-101 to -106) applies to landlord–tenant residential leases; the circuit court answered "Yes."
- Supreme Court accepted certification and reviewed de novo whether those CCPA provisions regulate residential lease fees charged by landlords.
- The Attorney General argued CCPA’s broad definitions make tenants "consumers," landlords "debt collectors," and lease fees "claims," bringing landlord conduct within both debt-collection and deceptive-practices provisions.
- Copper Beech countered that the CCPA does not expressly cover residential leases, and landlord–tenant relationships are already pervasively and explicitly regulated by other West Virginia statutes.
- The Supreme Court emphasized textual construction, legislative intent, and the absence of express inclusion of residential leases in the CCPA as enacted.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether debt-collection provisions of the CCPA (W.Va. Code §§ 46A-2-122 to -129a) apply to residential lease fees | CCPA definitions are broad: tenant = consumer; landlord = debt collector; fees = claims arising from a transaction | CCPA does not mention leases/landlords; landlord–tenant law is regulated elsewhere; no legislative intent to include leases | No — debt-collection provisions do not apply to residential lease fees |
| Whether unfair/deceptive acts or practices provisions (W.Va. Code §§ 46A-6-101 to -106) apply to residential leases | A residential lease is a bundle of goods/services or otherwise falls within "trade or commerce" | "Trade or commerce" is limited to goods/services; legislature would have explicitly included residential leases if intended | No — deceptive-practices provisions do not apply to residential lease fees |
| Whether general CCPA application language (article 1) brings residential leases into scope | Broad application language covers many consumer transactions, including leases | Article 1 defines "consumer lease" as lease of goods, not real property; CCPA’s specific application language does not refer to residential rental space | No — article 1 does not convert residential leases into CCPA-covered consumer leases |
| Whether Teller v. McCoy or other precedents convert leases into goods/services for CCPA purposes | AG relied on Teller to treat leases as contracts involving services/goods | Teller recognized lease as contract and implied warranty of habitability but did not redefine lease as a "good" or "service" under CCPA | Teller does not compel application of CCPA to residential leases; CCPA not applicable |
Key Cases Cited
- Brooke B. v. Ray, 230 W.Va. 355, 738 S.E.2d 21 (W.Va. 2013) (canon: courts must not add to or omit statutory text)
- Gallapoo v. Wal‑Mart Stores, Inc., 197 W.Va. 172, 475 S.E.2d 172 (W.Va. 1996) (appellate review of certified legal questions is de novo)
- White v. Wyeth, 227 W.Va. 131, 705 S.E.2d 828 (W.Va. 2010) (describing CCPA purpose to protect consumers and promote fair business practices)
- Harper v. Jackson Hewitt, Inc., 227 W.Va. 142, 706 S.E.2d 63 (W.Va. 2010) (CCPA is comprehensive consumer-credit protection scheme)
- State ex rel. McGraw v. Bear, Stearns & Co., Inc., 217 W.Va. 573, 618 S.E.2d 582 (W.Va. 2005) (noting ambiguity of W.Va. Code § 46A-6-104 and need for statutory construction)
- Fleet v. Webber Springs Owners Ass'n, Inc., 235 W.Va. 184, 772 S.E.2d 369 (W.Va. 2015) (homeowners association assessments can be "claims" under § 46A-2-122(b), but distinguishable from landlord–tenant fees)
- Teller v. McCoy, 162 W.Va. 367, 253 S.E.2d 114 (W.Va. 1979) (implied warranty of habitability in residential leases; does not recategorize leases as "goods" under CCPA)
- Schwab, 103 Wash. 2d 542, 693 P.2d 108 (Wash. 1985) (cautioning courts against judicially expanding consumer-protection acts to cover landlord–tenant relationships; such expansions are for the legislature)