Shires Housing, Inc. v. Carolyn S. Brown and William A. Shepard, II
No. 2016-323
Supreme Court of Vermont
2017 VT 60
John W. Valente, J.
March Term, 2017
NOTICE: This opinion is subject to motions for reargument under V.R.A.P. 40 as well as formal revision before publication in the Vermont Reports. Readers are requested to notify the Reporter of Decisions by email at: JUD.Reporter@vermont.gov or by mail at: Vermont Supreme Court, 109 State Street, Montpelier, Vermont 05609-0801, of any errors in order that corrections may be made before this opinion goes to press.
Michael S. Munson of Barr, Sternberg, Moss, Silver & Munson, PC, Bennington, for Plaintiff-Appellee.
Maureen A. O‘Reilly, Vermont Legal Aid, Inc., Rutland, for Defendant-Appellant.
PRESENT: Reiber, C.J., Dooley, Skoglund, Robinson and Eaton, JJ.
¶ 2. Tenant and her cotenant leased lot 19 in landlord‘s Willows Mobile Home Park in Bennington, Vermont. Tenant‘s lease prohibited “any criminal activity including illegal drug-related activity on or near the premises” and stated that “such criminal activity shall be cause for termination of the tenancy.” The lease also required the park owner or manager to “provide the [r]esident with written notice of the reason for an intended eviction.” On February 29, 2016, landlord filed a complaint for eviction against tenant and her cotenant, alleging cotenant and a guest engaged in illegal drug-related activity on the premises. It is undisputed that landlord did not provide written notice prior to initiating the eviction proceedings.
¶ 3. Landlord served tenant with a complaint for ejectment on March 24, 2016. On April 14, 2016, tenant filed a motion to dismiss, arguing that: (1) the complaint failed to allege prior notice, which she argued was required under
¶ 4. The trial court denied tenant‘s motion to dismiss, ruling that § 6237(a) unambiguously contains an exception to the notice requirement when a tenant causes a substantial violation of the lease terms. In reaching that conclusion, the court noted that two other trial courts had considered the same question and had ruled in favor
¶ 5. On July 22, 2016, tenant requested permission to file an interlocutory appeal, arguing the issue of written notice of tenancy termination is a controlling question of law about which there exists a substantial ground for difference of opinion. See V.R.A.P. 5(b) (providing that “superior court must permit an appeal from an interlocutory order or ruling” if order or ruling “involves a controlling question of law about which there exists substantial ground for difference of opinion” and immediate appeal “may materially advance the termination of the litigation“). The court granted permission, citing the two previous contradictory trial court decisions and the lack of caselaw from this Court to guide the trial courts.
¶ 6. On appeal, tenant argues the trial court‘s order should be reversed for three reasons. First, an ejectment action cannot proceed in the absence of a written notice of tenancy termination. Second, the trial court incorrectly found § 6237(a) to be clear on its face. Third, the trial court should have deferred to the Department‘s rule. We agree with tenant that
¶ 7. We review a trial court‘s decision on a motion to dismiss de novo, applying the same standard as the lower court and taking to be true all facts as pleaded in the complaint, without considering “contravening assertions” in the defendant‘s pleadings. Birchwood Land Co. v.
Krizan, 2015 VT 37, ¶ 6, 198 Vt. 420, 115 A.3d 1009. Accordingly, our review “is limited to determining ‘whether the bare allegations of the complaint are sufficient to state a claim.‘” Id. (quoting Kaplan v. Morgan Stanley & Co., 2009 VT 78, ¶ 7, 186 Vt. 605, 987 A.2d 258 (mem.)).
¶ 8. Our review begins with the language of the statute. Section 6237(a) provides:
A leaseholder may be evicted only for nonpayment of rent or for a substantial violation of the lease terms of the mobile home park . . . and only in accordance with the following procedure:
. . . .
(2) Prior to the commencement of any eviction proceeding, the park owner shall notify the leaseholder by certified or registered mail, except as provided in subdivision (3) of this subsection:
(A) of the grounds for an eviction proceeding;
. . . .
(3) A substantial violation of the lease terms, of the mobile home park, or an additional nonpayment of rent occurring within six months of the giving of the notice referred to in subdivision (2) of this subsection may result in immediate eviction proceedings.
The parties’ disagreement in this case involves the interplay between subsections (2) and (3). Specifically, tenant argues that the statutory language is unclear on its face, as evidenced by the fact that “the parties, several trial courts and the Department have found subsection (3) to be uncertain of meaning.” Landlord, on the other hand, argues that subsection (3) unambiguously does not require that a landlord provide notice to a tenant of the grounds for eviction prior to commencing eviction proceedings when the basis for the eviction proceeding is a substantial violation of the lease terms. Because this case reaches this Court on an appeal from a decision on a motion to dismiss, we take to be true the facts that landlord alleged in its complaint below, namely, that the basis for the eviction proceeding constituted a substantial lease violation. Accordingly, the only question we must answer is whether the statute is ambiguous and if so, what the Legislature intended when it enacted § 6237(a).
¶ 9. “Our primary objective in construing a statute is to effectuate the Legislature‘sintent.” Wesco, Inc. v. Sorrell, 2004 VT 102, ¶ 14, 177 Vt. 287, 865 A.2d 350. In accomplishing this, our first step is to examine the statute‘s language because we presume that the Legislature intended the plain, ordinary meaning of the statutory language. Id. If a statute is clear on its face, we accept its plain meaning and will not rely on statutory construction, but where the language creates ambiguity or uncertainty, we resort to statutory construction to ascertain the legislative intent. In re Hinsdale Farm, 2004 VT 72, ¶ 5, 177 Vt. 115, 858 A.2d 249. In construing legislative intent, “we must consider the entire statute, including its subject matter, effects and consequences, as well as the reason for and spirit of the law.” Id. Legislative history, circumstances surrounding a statute‘s enactment, and evidence of the legislative policy at which the statute was aimed are indications of the Legislature‘s intent. Id. Additionally, where a statute is silent or ambiguous and an agency charged with enforcing the statute has interpreted it, this Court will defer to the agency interpretation of the statute within its area of expertise. In re Smith, 169 Vt. 162, 169, 730 A.2d 605, 611 (1999); C&S Wholesale Grocers, Inc. v. Dep‘t of Taxes, 2016 VT 77A, ¶ 13, 204 Vt. 1, 155 A.3d 169 (“We defer to agency interpretations of statutes the Legislature has entrusted to their administration . . . .“). “‘Absent compelling indication of an error, interpretation of a statute by an administrative body responsible for its execution will be sustained on appeal,’ unless it is unjust or unreasonable.” Laumann v. Dep‘t of Public Safety, 2004 VT 60, ¶ 7, 177 Vt. 52, 857 A.2d 309 (quoting Bedini v. Frost, 165 Vt. 167, 169, 678 A.2d 893, 894 (1996)).
¶ 10. The first question we must answer is whether § 6237(a) is ambiguous about what notice a landlord must provide a mobile home tenant prior to commencing eviction proceedings in the event of a substantial violation of the lease terms. Giving the statutory language its plain and ordinary meaning, we conclude that it is ambiguous.
¶ 11. As structured, the statute starts with the premise that all mobile home park eviction actions must be preceded by notice, unless an exception to the notice requirement applies. See
¶ 12. Rather, subsection (3) is unclear about whether the phrase “occurring within six months” refers only to “an additional nonpayment of rent” or if it also applies to “[a] substantial violation of the lease terms.”
¶ 13. Additionally, as the trial court observed in Sunset Lake Villa Associates v. Miller, in its attempt to interpret the language at issue in this case, “the provision is poorly worded andconfusing, primarily because it appears to be missing a comma between the words ‘rent’ and ‘occurring,‘” and “[i]t would not be logical to first say that all evictions, including those for substantial violations, must be done with notice, and then say that ones for substantial violations do not need notice.” Sunset Lake Villa Assocs. v. Miller, No. 416-4-15 Cncv, slip op. at 2 (Vt. Super. Ct. July 6, 2015); see also Garden Homes, No. 251-7-12 Bncv, slip op. at 3 (”
¶ 14. In short, it is unclear from the language of the statute itself whether the Legislature intended to exempt substantial lease violations from the notice requirement or if instead the Legislature intended the statute to require no notice after a second substantial lease violation within six months of a first substantial lease violation. Even if landlord is correct that the Legislature intended to create a general rule in § 6237(a)(2)—notice is required—and then lay out exceptions to that rule in § 6237(a)(3)—notice is not required—the statute is sufficiently confusing to render it susceptible to more than one interpretation. Because we conclude that the statute is ambiguous, and because the agency charged with enforcing the statute has attempted to define it, we must “seek out the interpretation intended by the statute‘s drafters.” See In re Agency of Admin., 141 Vt. 68, 76, 444 A.2d 1349, 1352 (1982).
¶ 16. The Legislature charged the Department with creating rules to interpret and enforce the purposes of the Mobile Home Parks Act—namely, ” ‘to protect the health, safety and welfare of the residents of mobile home developments.’ ” State Agency of Dev. & Cmty. Affairs v. Bisson, 161 Vt. 8, 14, 632 A.2d 34, 38 (1993) (quoting 1969, No. 291 (Adj. Sess.), § 2). The Department adopted Rule 12.2.1, pursuant to
No notice shall be required if . . . a substantial violation is the second such occurrence within 6 months, and proper notice was provided with respect to the first non-payment or substantial violation during the period.
Housing Division Rules Part I: Mobile Home Parks, Code of Vt. Rules 11 020 001, http://www.lexisnexis.com/hottopics/codeofvtrules/ [https://perma.cc/4YZV-QN32]. The Rule interprets § 6237 to mean that a landlord is not required to give a tenant notice of eviction whenthe tenant commits a second substantial violation within six months. The notice required by a landlord before initiating eviction proceedings is not clearly stated in the statute, and the Department‘s interpretation provides clarity by stating “[n]o notice shall be required if the nonpayment of rent or a substantial violation is the second such occurrence within 6 months.” Rule 12.2.1. The trial court found that the Rule conflicts with the statute based on its conclusion that the statutory language is unambiguous, and the court therefore did not consider the Legislature‘s intent in its analysis.
¶ 17. We also find support for tenant‘s position in the context of the Legislature‘s intent. Legislative “intent is most
¶ 18. As the trial court recognized, its decision afforded greater protection to renters of mobile homes than owners of mobile homes because renters have a right to at least fourteen days’ notice for substantial lease violations under Title 9, but it failed to address how this result is consistent with the statute‘s express goal of protecting mobile home residents. That the Legislatureintended to provide additional protections for mobile home park residents is evidenced by the language of the statute and its legislative history. Specifically, the Legislature expressed that mobile home housing accomodates low and moderate income groups, and the use of the word “only” in § 6237(a) indicates the Legislature‘s intent to limit the circumstances under which park residents may be evicted. This protection acknowledges the limited space availability and expense of moving mobile homes and seeks to protect mobile home park residents. Additionally, the Legislature has not seen fit to amend § 6237(a)(2)-(3) since the statute‘s enactment in 1973. 1973, No. 264 (Adj. Sess.), § 2. That fact is relevant because we presume that the Legislature is aware of the backdrop against which it is legislating, and its failure to act when the Department has interpreted the statute is an indication that the Department‘s interpretation aligns with the Legislature‘s intentions. See Lydy v. Trustaff, Inc., 2013 VT 44, ¶ 11, 194 Vt. 165, 76 A.3d 150 (considering Legislature‘s failure to amend statutory language in light of agency interpretation and concluding that Legislature‘s silence implies Legislature‘s agreement with agency interpretation).
¶ 19. Moreover, in 2011, the Legislature added the following language to § 6237(a)(4): “[a] substantial violation of the lease terms based upon criminal activity will be insufficient to support a judgment of eviction unless the proceeding is commenced no later than 60 days after arraignment.”
¶ 20. The Department Rule aligns with the purpose of the Mobile Home Parks Act—to provide additional protections for mobile home owners due to the limited availability of space and the high cost of relocating mobile homes—and the Department‘s interpretation relies on its area of expertise by ensuring that the statutory scheme it is charged with enforcing is given its intended meaning. See Bisson, 161 Vt. at 14, 632 A.2d at 38. In light of the legislative history and the purpose of the statute, the agency‘s interpretation of the Rule is not clearly erroneous. Therefore, in the absence of notice required by the Rule, dismissal under V.R.C.P. 12(b)(6) was the appropriate remedy. See Sweet v. Roy, 173 Vt. 418, 449, 801 A.2d 694, 717 (2002).
Reversed.
FOR THE COURT:
Associate Justice
¶ 21. SKOGLUND, J., dissenting. A cotenant engaged in drug activity in tenant‘s mobile home; this illegal activity substantially violated the lease for the lot where tenant‘s mobile home is located. Subsequently, and without providing tenant with written notice of the intent to initiate eviction proceedings, landlord commenced eviction proceedings by filing a complaint against tenant in superior court. Landlord‘s action was supported by
¶ 22. The relevant part of
A leaseholder may be evicted only for nonpayment of rent or for a substantial violation of the lease terms of the mobile home park . . . and only in accordance with the following procedure:
. . . .
(2) Prior to the commencement of any eviction proceeding, the park owner shall notify the leaseholder by certified or registered mail, except as provided in subdivision (3) of this subsection:
(A) of the grounds for an eviction proceeding;
. . . .
(3) A substantial violation of the lease terms, of the mobile home park, or an additional nonpayment of rent occurring within six months of the giving of the notice referred to in subdivision (2) of this subsection may result in immediate eviction proceedings.
(4) A substantial violation of the lease terms, other than an uncured nonpayment of rent, will be insufficient to support a judgment of eviction unless the proceeding is commenced within 60 days of the last alleged violation. A substantial violation of the lease terms based upon criminal activity will be insufficient to support a judgment of eviction unless the proceeding
is commenced no later than 60 days after arraignment.
¶ 23. I fail to see the ambiguity.
¶ 24. More important, this plain reading comports with the overall structure of § 6237 and evinces the Legislature‘s clear intent to treat eviction proceedings involving “substantial violations of the lease” differently from other eviction proceedings. Hill, 143 at 93, 463 A.2d at 233 (“Underlying all other rules of construction is the fundamental rule that we must ascertain and give effect to the true intent of the legislature . . . .“). In particular, § 6237‘s procedural mechanics for eviction proceedings create a progressive scheme tied to the leaseholder‘s culpability for lease violations. For those instances that the leaseholder bears no fault—“a change in use of the park land or parts thereof or a termination of the mobile home park“—he or she must have notice prior to an eviction proceeding.
¶ 25. Moreover, even though the upshot of this procedural system is that a leaseholder who commits a substantial lease violation has fewer procedural protections, the Legislature still provided some protections for leaseholders who commit substantial lease violations. Under § 6237(a)(4), eviction proceedings for substantial violations of the lease terms must start within “60 days of the last alleged violation” or “no later than 60 days after arraignment.” These time limits are specific to violations of lease terms. Likewise, if a court enters an order of eviction, the court always retains the discretion to determine how and when an evicted leaseholder must comply with the eviction order.
¶ 26. Overall, the plain language indicates that the Legislature set up a balanced notice scheme based on the character of the leaseholder‘s violation. This is consistent with the purpose of § 6237 as articulated by this Court: “[Section] 6237 provides owners and renters of mobile homes, who tend to be lower-income groups that may have difficulty finding alternative housing, added security from arbitrary eviction.” State Agency of Dev. & Cmty. Affairs v. Bisson, 161 Vt. 8, 14, 632 A.2d 34, 38 (1993). The scheme described above is anything but arbitrary; it is a clear plan that provides equal weight to all of the competing interests, and the limited procedural protections for substantial violators of a lease reflect this balancing.
¶ 27. Despite this plain language, tenant and the majority point to two possible sources of ambiguity and conclude that, because of these claimed ambiguities, the Department of Housing and Community Development‘s interpretation of the statute should be given deference. As tenant states, to be ambiguous, the statute must be capable of more than one interpretation. See Ambiguity, Black‘s Law Dictionary (10th ed. 2014) (“An uncertainty of meaning based not on the scope of a word or phrase but on a semantic dichotomy that gives rise to any of two or more quitedifferent but almost equally plausible interpretations.“). But § 6237‘s language does not support more than one plausible interpretation.
¶ 28. The first claimed ambiguity is that “subsection (3) is unclear about whether the phrase ‘occurring within six months’ refers only to ‘an additional nonpayment of rent’ or if it also applies to ‘[a] substantial violation of the lease terms. ’ ” Ante, ¶ 12. But this phrase is ambiguous only if a reader ignores a basic tenet of the English language: “[I]f a participial phrase does not start a sentence, it should modify the noun, pronoun, or noun phrase that most closely precedes it.” See B. Garner, The Redbook: A Manual on Legal Style § 10.29(b) (2d ed. 2006). Here, the phrase “occurring within six months of the giving of the notice referred to in subdivision (2) of this subsection” is a present participial phrase that modifies the noun that closely precedes it—in this case, “nonpayment.” No rule of language suggests that the participial phrase modifies “[a] substantial violation of the lease terms.”
¶ 29. The absurdity of this reading becomes clear after examining the two trial court cases relied on by the majority: Sunset Lake Villa Associates v. Miller, No. 416-4-15 Cncv, slip op. (Vt. Super. Ct. July 6, 2015) and Garden Homes Management Corp. v. Marchand, No. 251-7-12 Bncv, slip op. (Vt. Super. Ct. Sept. 18, 2012). In Garden Homes Management Corp., the trial court confronted a similar issue involving a landlord‘s failure to notify a leaseholder of eviction proceedings for a substantial violation of the lease terms. Garden Homes Managment Corp., No. 251-7-12 Bncv, slip op. at 2. The trial court first looked to the Department‘s rule interpreting § 6237, which states that notice will not be required if “a substantial violation is the second such occurrence within 6 months.” Housing Division Rules Part I: Mobile Home Parks, Code of Vt. Rules 11 020 001, Rule 12.2.1, http://www.lexisnexis.com/hottopics/codeofvtrules/ [https://perma.cc/4YZV-QN32]. Based on the Department‘s interpretation, the trial courtconcluded an ambiguity existed and applied the Department‘s rule.2 Garden Homes Mgmt. Corp., No. 416-4-15, slip op. at 5. Subsequently, the trial court in Sunset Lake Villa Associates relied on Garden Homes Management Corp. and further noted that § 6237 “is poorly worded and confusing, primarily because it appears to be missing a comma between the words ‘rent’ and ‘occurring.’ ” Sunset Lake Villa Associates v. Miller, No. 416-4-15 Cncv, slip op. at 2. As a result, according to the trial courts, the Department, and the majority, a properly punctuated version of § 6237 would include a comma between “rent” and “occurring.” See ante, ¶ 13.
¶ 30. This phantom comma creates an ambiguity where none was present.3 As explained above, the phrase “occurring within six months of the giving of the notice referred to in subdivision (2) of this subsection” is a present participial phrase that modifies the noun “nonpayment.” See
is illogical . . . .“). Here, placing a comma between “rent” and “occurring” would create a dangler and result in an ambiguity because it would be unclear whether the phrase modified “substantial violation of the lease terms” or “an additional nonpayment of rent.” In other words, the phantom comma produces the very ambiguity that the majority claims already exists. Rather than manufacture an ambiguity out of thin air, I would follow the clear intent of the language: the present participial phrase “occurring within six months of the giving of the notice referred to in subdivision (2) of this subsection” modifies “nonpayment,” the closest noun preceding the phrase. Garner, supra, § 10.29(b).
¶ 31. The second claimed ambiguity involves the interplay between § 6237(a)(2) and § 6237(a)(3). The argument is that, because § 6237(a)(2) states that “prior to the commencement of any eviction proceeding” a park owner must provide notice to a leaseholder, notice is required regardless of the violation type. This argument ignores several key components of the statute‘s plain language. Most important, it reads out the third phrase in § 6237(a)(2), which provides exceptions to the general notice requirement.
¶ 32. In short, § 6237‘s language is not ambiguous. I would stand on the statute‘s plain language, which creates a graduated procedural scheme depending on the type of violation. In this case, tenant committed a substantial violation of the lease terms; as a result, landlord was not required under
Associate Justice