NEWBERRY STATION HOMEOWNERS ASSOCIATION, INC., ET AL. v. BOARD OF SUPERVISORS OF FAIRFAX COUNTY, ET AL.
Record No. 121209
Supreme Court of Virginia
April 18, 2013
Leslie M. Alden,
PRESENT: All the Justices
OPINION BY JUSTICE WILLIAM C. MIMS
FROM THE CIRCUIT COURT OF FAIRFAX COUNTY
In this appeal, we consider whether
I. BACKGROUND AND MATERIAL PROCEEDINGS BELOW
In 2010, Iskalo CBR, LLC, (“Iskalo“) filed an application (“the Application“) for a special exception to build a Washington Metropolitan Area Transit Authority (“WMATA“) bus maintenance facility on a parcel of land in Fairfax County. The parcel comprises 5.32 acres which lie in the R-1 zoning district and 12.05 acres which lie in the I-6 zoning district. After a public hearing, the planning commission approved the facility as being substantially in accord with the comprehensive plan pursuant to
Newberry Station is a residential community situated a mile from the proposed facility and between 140 feet and a quarter-mile from the road over which the bus traffic would travel. If constructed, the facility would significantly increase vehicular traffic over the road, attributable not only to the buses but also to commuting employees traversing the road during both daylight and overnight hours. The Newberry Station Homeowners Association, Inc. (“the HOA“) submitted official comments to the Board recommending that it overturn the planning commission‘s
At a February 2011 public hearing, the Board‘s chairman and Supervisor Cook disclosed that they had received campaign contributions from attorneys representing Iskalo. In addition, Supervisor Hudgins disclosed that she was a principal director of WMATA and Supervisor McKay disclosed that he was an alternate director of WMATA. At its March 2011 meeting, the Board approved the Application by a vote of 6 to 3. The Board‘s chairman abstained and the three supervisors who had made disclosures voted to approve the Application.
The HOA, Brandon Farlander, and Michael Miller (collectively, “Newberry Station“) thereafter filed a complaint seeking a declaratory judgment that the Board‘s approval of the Application was void and an injunction barring construction of the facility.2 They argued that
The Board filed a demurrer arguing, among other things, that while
The circuit court sustained the Board‘s demurrer only as to the applicability of
We awarded Newberry Station this appeal.
II. ANALYSIS
A. CONFLICTS OF INTEREST REQUIRING RECUSAL UNDER CODE § 15.2-852(A)
In its first assignment of error, Newberry Station asserts that the circuit
Each individual member of the board of supervisors . . . in any proceeding . . . involving an application for a special exception . . . shall, prior to any hearing on the matter or at such hearing, make a full public disclosure of any business or financial relationship which such member has, or has had within the 12-month period prior to such hearing, (i) with the applicant in such case, or (ii) with the title owner, contract purchaser or lessee of the land that is the subject of the application . . ., or (iii) if any of the foregoing is a trustee (other than a trustee under a cоrporate mortgage or deed of trust securing one or more issues of corporate mortgage bonds), with any trust beneficiary having an interest in such land, or (iv) with the agent, attorney or real estate broker of any of the foregoing. For the purpose of this subsection, “business or financial relationship” means any relationship (other than any ordinary customer or depositor relationship with a retail establishment, public utility or bank) such member, or any member of the member‘s immediate household, either directly or by way of a partnership in which any of them is a partner, employee, agent or attorney, or through a partner of any of them, or through a corporation in which any of them is an officer, director, employee, agent or attorney or holds 10 percent or more of the outstanding bonds or shares of stock of a particular clаss, has, or has had within the 12-month period prior to such hearing, with the applicant in the case, or with the title owner, contract purchaser or lessee of the subject land . . ., or with any of the other persons above specified. For the purpose of this subsection “business or financial relationship” also means the receipt by the member, or by any person, firm, corporation or committee in his behalf from the applicant in the case or from the title owner, contract purchaser or lessee of the subject land . . ., or from any of the other persons above specified, during the 12-month period prior to the hearing in such case, of any gift or donation having a value of more than $100, singularly or in the aggregate. If at the time of the hearing in any such case such member has a business or financial interest with the applicant in the case оr with the title owner, contract purchaser or lessee of the subject land . . ., or with any of the other persons above specified involving the relationship of employee-employer, agent-principal, or attorney-client, that member shall, prior to any hearing on the matter or at such hearing, make a full public disclosure of such relationship and shall be ineligible to vote or participate in any way in such case or in any hearing thereon.
Newberry Station argues that the statute defines “business or financial interest” as
any relationship (other than any ordinary customer or depositor relationship with a retail establishment, public utility or bank) such member . . . either directly or by way of a partnership in which any of them is a partner, employee, agent or attorney, or through a partner of any of them, or through a corporation in which any of
them is an officer, director, employee, agent or attorney or holds 10 percent or more of the outstanding bonds or shares of stock of a particular class, has, or has had within the 12-month period prior to such hearing, with the applicant in the case, or with the title owner, contract purchaser or lessee of the subject land . . . .
By contrast, the Board argues that this language defines a “business or financial relationship” and does not pertain to a “business or financial interest.” According to the Board, the General Assembly used two distinct terms in the statute and Newberry Station incorrectly uses them interchangeably. The definition of “business or financial interest,” the Board continues, is defined in the second paragraph of
Newberry Station responds that the Board‘s interpretation is incorrect. It argues that the phrase “involving the relationship of employee-employer, agent-principal, or attorney-client” modifies only the phrase “any of thе other persons above specified.” Thus, according to Newberry Station, the second paragraph merely prohibits a business or financial interest with (1) the applicant, (2) the title owner, (3) the contract purchaser, (4) the lessee, or (5) “any of the other persons above specified involving the relationship of employee-employer, agent-principal, or attorney-client.” It therefore does not, Newberry Station concludes, provide any independent definition of “business or financial interest.”
It is well-settled that “we determine the General Assembly‘s intent from the words contained in the statute.” Alger v. Commonwealth, 267 Va. 255, 259, 590 S.E.2d 563, 565 (2004). Accordingly, “[w]hen a statute is unambiguous, we must apply the plain meaning of that language.” Appalachian Power Co. v. State Corp. Comm‘n, 284 Va. 695, 706, 733 S.E.2d 250, 256 (2012). “[W]hen the language of an enactment is free from ambiguity, resort to legislative history and extrinsic facts is not permitted because we take the words as written to determine their meaning.” Brown v. Lukhard, 229 Va. 316, 321, 330 S.E.2d 84, 87 (1985).
However, a statute is ambiguous when its language is “capable of more senses than one, difficult to comprehend or distinguish, of doubtful import, of doubtful or uncertain nature, of doubtful purport, open to various interpretations, or wanting clearness of definiteness,” particularly where its words “have either no definite sense or else a double one.” Ayres v. Harleysville Mut. Casualty Co., 172 Va. 383, 393, 2 S.E.2d 303, 307 (1939). We determine that the arguments advanced by both sides have some element of merit and that the phrase “business or financial interest” is undefined and ambiguous in light of its placement following the defined term “business or financial relationship.” We therefore will consider the meaning of the statute in light of the canons of construction and its legislative history.
We begin by evaluating the Board‘s argument that the statute defines “business or financial interest” as one “involving the relationship of employee-employer, аgent-principal, or attorney-client.” The relevant portion of the second paragraph of
[i]f at the time of the hearing in any such case such member has a business or financial interest with the applicant in the case or with the title owner, contract purchaser or lessee of the subject land . . ., or with any of the other persons above specified involving the relationship of employee-employer, agent-principal, or attorney-client,
that member shall, prior to any hearing on the matter or at such hearing, make a full public disclosure of such relationship and shall be ineligible to vote or participate in any way in such case or in any hearing thereon.
The question essentially is whether the phrase “involving the relationship of employee-employer, agent-principal, or attorney-client” modifies the nоun “persons” in “any of the other persons above specified” or the noun “interest” in “business or financial interest.” The Board adopts the first of these possible constructions. Under this argument, the phrase “involving the relationship of employee-employer, agent-principal, or attorney-client” applies to each of the preceding entities: the applicant, the title owner, the contract purchaser, the lessee, or any of the other persons listed in the first paragraph of the subdivision. That construction contravenes the rule of the last antecedent.
Under that rule, “[r]eferential and qualifying words and phrases, where no contrary intention appears, refer solely to the last antecedent. The last antecedent is ‘the last word, phrase, or clause that can be made an antecedent without impairing the meаning of the sentence.‘” Alger, 267 Va. at 259, 590 S.E.2d at 565-66 (quoting 2A Norman J. Singer, Sutherland on Statutory Construction § 47.33 (6th rev. ed. 2000)). Applying the rule to the operative sentence here, the phrase “involving the relationship of employee-employer, agent-principal, or attorney-client” modifies only the immediately preceding antecedent: “any of the other persons above specified.” The phrase does not apply to the applicant, the title owner, the contract purchaser, or the lessee.4 It similarly does not modify “business or financial interest,” thereby defining that phrase to be distinct from “business or financial relationship.”5 We now turn to Newberry Station‘s argument.
We have repeatedly said that, “[w]hen interpreting and applying a statute, we ‘assume that the General Assembly chose, with care, the words it used in enacting the statute, and we are bound by those words.‘” Kiser v. A.W. Chesterton Co., 285 Va. 12, 19 n.2, 736 S.E.2d 910, 915 n.2 (2013) (quoting Halifax Corp. v. First Union Nat‘l Bank, 262 Va. 91, 100, 546 S.E.2d 696, 702 (2001)); accord Rives v. Commonwealth, 284 Va. 1, 3, 726 S.E.2d 248, 250 (2012). Therefore, “‘when the General Assembly has used specific language in one instance, but omits that language or uses different language when addressing a similar subject elsewhere in the Code, we must presume that the difference in the choice of language was intentional.‘” Id. (quoting Zinone v. Lee‘s Crossing Homeowners Ass‘n, 282 Va. 330, 337, 714 S.E.2d 922, 925 (2011)).
Applying these principles to this case could lead to the conclusion that the General Assembly deliberately chose the phrase “business or financial relationship” in the first paragraph of
When the statute originally was enacted and codified as former Code § 15.1-73.4, and for nearly thirty years thereafter, the phrase “business or financial interest” was followed by the phrase “as above defined,” indicating that the General Assеmbly intended that phrase to have the meaning set forth in preceding language. 1968 Acts ch. 774; accord 1970 Acts ch. 654; 1988 Acts ch. 879. Yet no definition of “business or financial interest” was provided there; the only definition set forth was the one provided for a “business and financial relationship.” Id. This supports an interpretation that the legislature at that time intended the terms “business or financial relationship” and “business or financial interest” to be synonymous.
However, the General Assembly subsequently struck the phrase “as above defined” from the statute when it was recodified as
As an enactment to recodify an existing title of the Code of Virginia, the underlying legislation was prepared by the Virginia Code Commission (“the Commission“) at the direction of the General Assеmbly, Senate J. Res. 2, 1994 Acts, at 2600, and it was accompanied by a drafting report. Senate Doc. No. 5, Virginia Code Commission, Report on the Recodification of Title 15.1 of the Code of Virginia at 173-74 (1997). The drafting report proposed the elimination of “as above defined” after the phrase “business or financial interest.” Id. at 174. The drafting note for this amendment also states that the proposal was not intended to effect a substantive change. Id.
The Commission‘s report on the recodification is the impetus of the underlying legislation at issue here.6 The General Assembly expressly instructed the Commission “to study Title 15.1” and report back a revision of the title. Senate J. Res. 2, 1994 Acts, at 2600. The General Assembly then enacted into law the proposals contained in the report with few amendments, and no amendments at all to the recommended language of the provision that is now codified as
As previously noted, from the time of its original enactment in 1968 to the 1997 recodification the operative language of the second paragraph began, “[i]f at the time of the hearing . . . a member . . . has a business or financial
interest, as above defined . . . .” Former Code § 15.1-73.4 (emphasis added). However, the phrase “business or financial interest” was not defined in the preceding language; only the phrase “business or financial relationship” was defined. We therefore conclude that the phrase “business or financial interest” was intended to have the same meaning as “business or financial relationship.” Separating thе meaning of “business or financial interest” as used in the second paragraph from “business or financial relationship” as used in the first paragraph would have effectuated a substantive change.
Accordingly, “business and financial interest” has the same meaning as “business and financial relationship.” As defined in the statute, “business or financial relationship” means, in relevant part,7
any relationship (other than any ordinary customer or depositor relationship with a retail establishment, public utility or bank) such member . . . either directly or by way of a partnership in which any of them is a partner, employee, agent or attorney, or through a partner of any of them, or through a corporation in which any
of them is an officer, director, employee, agent or attorney or holds 10 percent or more of the outstanding bonds or shares of stock of a particular class, has, or has had within the 12-month period prior to such hearing, with the applicant in the case, or with the title owner, contract purchaser or lessee of the subject land . . . .
Newberry Station argues that such a relationship existed because (a) WMATA was the contract purchaser of the land subject to the Application and (b) WMATA is a corporation and Supervisors Hudgins and McKay were members of its board of directors. Although it does not dispute that WMATA was the contract purchaser, the Board responds that WMATA is a governmental agency, not a private corporation, and therefore is not a corporation within the meaning of
WMATA is a government agency created in corporate form by interstate compact between Virginia, Maryland, and the District of Columbia. The Washington Metropolitan Area Transit Regulation Compact of 1966, as amended by 2009 Acts chs. 771 and 828 (“the Compact“) states:
There is hereby created, as an instrumentality and agency of each of the Signatory parties hereto, the Washington Metropolitan Area Transit Authority which shall be a body corporate and politic, and which shall have the powers and duties granted herein and such additional powers as may hereafter be conferred upon it pursuant to law.
(Emphasis added.) The words “body corporate and politic” сreate a corporation. See Dunningtons v. President & Dir. N. W. Turnpike Road, 47 Va. (6 Gratt.) 160, 170 (1849); Chapline v. Overseers of the Poor, 34 Va. (7 Leigh) 231, 233 (1836). However, WMATA is also “an instrumentality and agency of” the Commonwealth. See Short Pump Town Ctr. Cmty. Dev. Auth. v. Hahn, 262 Va. 733, 742 & n.10, 554 S.E.2d 441, 445 & n.10 (2001) (language creating a “public body corporate and politic” or creating a “body corporate and politic” and a “political subdivision” creates a governmental agency).
In Cuccinelli v. Rector & Visitors of the University of Virginia, 283 Va. 420, 722 S.E.2d 626 (2012), we were called upon to determine whether the University of Virginia, which like WMATA is a governmental agency in corporate form,8 was a “person” for the purposes of the Virginia Fraud Against Taxpayers Act,
“corporation” was included in the definition of “person” provided in
In applying the canon to
statute the General Assembly intended to prevent members of the Board from acting on public business from which they may receive a financial benefit, either directly or through a household member. Because WMATA is a governmental agency organized in corporate form, it affords no opportunity for financial benefit to its unpaid directors.10 It therefore is not a “corporation” within the meaning of the statute.
Accordingly, the circuit court did not err in sustaining the Board‘s demurrer. We therefore will affirm this portion of its judgment.
B. SUFFICIENCY OF THE EVIDENCE
In its second assignment of error, Newberry Station asserts that the circuit court erred by awarding the Board summary judgment upon a finding that the Board‘s approval of the Application was fairly debatable.
Approval of a special exception is a legislative act. Sinclair v. New Cingular Wireless PCS, LLC, 283 Va. 567, 581, 727 S.E.2d 40, 47 (2012) (citing Fairfax County Board of Supervisors v. Southland Corp., 224 Va. 514, 522, 297 S.E.2d 718, 722 (1982)). It therefore is entitled to a presumption of validity. Town of Leesburg v. Giordano, 280 Va. 597, 606, 701 S.E.2d 783, 787 (2010).
This presumption of validity is a presumption of reasonableness. Legislative action is reasonable if the matter at issue is fairly debatable. An issue is fairly debatable when the evidence offered in support of the opposing views would lead objective and reasonable persons to reach different conclusions. Under the fairly debatable standard, the governing body is not required to go forward with evidence sufficient to persuade the fact-finder of reasonableness by a preponderance of the evidence.
[Rather, w]here presumptivе reasonableness is challenged by probative evidence of unreasonableness, the challenge must be met by some evidence of reasonableness. If evidence of reasonableness is sufficient to make the question fairly debatable, the legislative action must be sustained. If not, the evidence of unreasonableness defeats the presumption of reasonableness and the legislative action cannot be sustained.
Id., 701 S.E.2d at 787-88 (internal citations, quotation marks, and alterations omitted). Nevertheless, when a legislative act is undertaken in violation of an existing ordinance, the board‘s “action [i]s arbitrary and capricious, and not fairly debatable, thereby rendering the [legislative act] void and of no effect.” Renkey v. County Bd. of Arlington County, 272 Va. 369, 376, 634 S.E.2d 352, 356 (2006).
Newberry Station first argues that the Board‘s action was arbitrary and capricious, and therefore void, under the Renkey standard beсause the Application was approved in violation of FCZO §§ 9-006(6), 9-011, and
ordinance at issue in Renkey, the cited provisions do not restrict the authority of the Board to act.
In Renkey, we considered a provision in the Arlington County Zoning Ordinance (ACZO). That provision permitted the board of supervisors to rezone land into a C-R class designation. The ordinance provided that to be eligible for the classification, a site shall be located within an area designated medium density mixed use and zoned C-3. 272 Va. at 373, 634 S.E.2d at 354 (quoting
Renkey challenged the board‘s approval in an action for declaratory judgment and injunctive relief, arguing that the board‘s action was invalid because the non-C-3 portion of the parcel was ineligible to be rezoned into the C-R class designation under the ordinance. Id. at 371-72, 634 S.E.2d at 354. We agreed with Renkey, concluding that the board lacked authority under the ordinance to rezone the non-C-3 portion of the parcel into the C-R class designation. That portion of the parcel was, by the terms of the ordinance, ineligible to be so rezoned. Accordingly, the board‘s action was arbitrary and capricious, and not fairly debatable, thereby rendering the re-zoning void and of no effect. Id. at 376, 634 S.E.2d at 356.
While
Even when the local governing body delegates the power to approve or deny a special exception, whereupon standards must be articulated in the zoning ordinance, id., the judicial inquiry is limited to the question of whether the officials, agencies, and boards exercising delegated legislative powers . . . ha[ve] acted in accordance with the policies and standards specified in the legislative delegation of power. Ames, 239 Va. at 349, 389 S.E.2d at 705. That review is subject to the presumрtion of validity recited above. Id. at 347-48, 389 S.E.2d at 704; accord Town of Leesburg, 280 Va. at 606, 701 S.E.2d at 787-88. Accordingly, while a local governing body acts arbitrarily and capriciously when it acts outside the scope of the authority conferred by the zoning ordinance, and the resulting action is void, Renkey, 272 Va. at 376, 634 S.E.2d at 356, we apply the presumption of validity when we review whether the local governing body adequately considered the standards set forth in the zoning ordinance when it approved or denied a special exception application.
Newberry Station also argues that the Board‘s approval of the Application is not entitled to a presumption of validity because it is not fairly debatable. For Newberry Station to prevail on this argument, the record must establish that it met its burden to adduce evidence of unreasonableness sufficient to rebut the presumption of reasonableness and that the Board failed to meet Newberry Station‘s evidence with some evidence of reasonableness. Town of Leesburg, 280 Va. at 606, 701 S.E.2d at 788.
Newberry Station specifically argues that the Board‘s approval of the Application was unreasonable because the Board relied on a staff report that evaluated the Application without considering standards applicable under the ordinance. Newberry Station‘s concerns are particularly directed to three standards, those set forth for open space, noise,
Newberry Station first challenges the Board‘s approval on the basis of open space requirements.
Newberry Station contends the Board failed to consider this standard because the staff report did not assess the amount of open space reserved on the portion of the parcel lying in the I-6 zoning district. The Board responds that the report contains sufficient evidence that the open space requirement would be met. We agree with the Board.
The report includes a plat of the portion of the parcel in the I-6 zoning district. Newberry Station concedes that the portion of the parcel in the I-6 district has an area of 12.05 acres. The Court may take judicial notice that an acre consists of 43,560 square feet. See Shackleford v. Commonwealth, 262 Va. 196, 210-11, 547 S.E.2d 899, 907 (2001) (holding the circuit court did not err in taking judicial notice of the conversion ratio between standard units of measurement). Therefore, the portion of the parcel in the I-6 district is 524,898 square feet.
Measuring the entire developed area of the parcel lying within the I-6 zoning district, including the facility, its parking lots, and other structures, as shown on that plat and according to its scale of measure, the area is less than 470,000 square feet, leaving more than 54,898 square feet undeveloped. This exceeds the 10% open space requirement by more than 2400 square feet.
Newberry Station next challenges the Board‘s approval on the basis of noise limits.
Newberry Station contends the noise study used by the Board in its consideration predicted the noise levels would be 55.3 decibels if the facility were approved. Under
The noise study evaluated noise levels at Hunter Estates, a residential community adjoining the parcel subject to the Application. By its own admission, Newberry Station is farther away from the proposed facility than Hunter Estates. Consequently, the study is not probative of the noise levels which may affect Newberry Station. While Newberry Station also argues that the buses traveling to and from the facility would generate excessive noise, and that Newberry Station is closer to the road than Hunter Estates, the limits set by the noise ordinance for vehicular traffic range from 76 to 90 decibels, depending on the size of the vehicle and the applicable speed limit.
More importantly,
Newberry Station contends the application included no such listing of substances. Rather, it continues, the Application merely included plats displaying storage tanks for certain substances and an additional hazmat container with no indication of what it would contain. Newberry Station also contends that WMATA uses ethylene glycol, a substance listed in
Unlike
While it might be possible in a hypothetical case that an applicant‘s failure to submit an application that fulfills a requirement imposed by the zoning ordinance would prevent a local governing body or delegated authority from considering one or more of the standards set forth in the ordinance, that is not the cаse here. Newberry Station has not identified any provision of the FCZO that establishes standards for the Board to consider with respect to hazardous or toxic substances. There is no standard, for example, obligating the Board to consider the types or quantities of such materials, or regulating the production, use, storage, treatment, or disposal of such materials, even if identified by the applicant. Cf.
Accordingly, the record contains sufficient evidence of reasonableness to make the Board‘s approval of the Application fairly debatable. To the extent Newberry Station adduced evidence of unreasonableness, the Board met the challenge by some evidence of reasonableness, and its decision must be sustained. Town of Leesburg, 280 Va. at 606, 701 S.E.2d at 788. The circuit court therefore did not err in awarding the Board summary judgment and we will affirm that portion of its judgment.
III. CONCLUSION
For the foregoing reasons, we will affirm the judgment of the circuit court.
Affirmed.
JUSTICE McCLANAHAN, concurring.
I agree with the majority‘s analysis and conclusion as to the sufficiency of the evidence issue. Also, I agree with the majority‘s conclusion that Supervisors Hudgins and McKay did not have conflicts within the meaning of
Furthermore, to the extent there is any doubt as to the meaning of
Contrary to the majority, I do not read the operative limiting language of “relationship of employee-employer, agent-principal, or attorney-client,” to apply only to the phrase “any of the other persons above specified.”
Nor do I agree that the definition of “business or financial relationship” in the first paragraph оf the statute (in describing the circumstances when a board member need only make a disclosure) can be imported to paragraph two by substituting the term “business or financial relationship” for “business or financial interest.” The legislature plainly used different terms in each paragraph. With the former, the legislature identified a wide range of “relationships” that a board member would be required to disclose. With the latter, the legislature identified a much more limited range of “interests” requiring recusal of the board member by limiting such “interests” to those “involving the relationship of employee-employer, agent-principal, or attorney-client.”
Accordingly, I believe we are bound by the language as plainly stated in the second paragraph of
For these reasons, I concur.
