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State Ex Rel. McGraw v. Telecheck Services, Inc.
582 S.E.2d 885
W. Va.
2003
Check Treatment

*1 unfair handling plaintiff-teenager’s ments that Nationwide settling the practices. trade Because this ease before claim. granting the circuit the Court court’s ma- plaintiff-teenager When the reached 12(b)(6) motion to for failure dismiss age, against jority filed Nationwide she suit claim, there to state a isn’t lot record seeking damages Trade under the Unfair support “findings.” or contradict these Such Act, [1985].1 Practices irrelevant, “findings” Court are also the alleged that Nation- plaintiff-teenager The considering fact the the Court’s decision misrepresentations during the made wide explicit the guided terms of settle- process improperly induced settlement agreement parol and not the evidence ment agree settle- plaintiff-teenager agreement. surrounding signing of Nationwide, Upon cir- ment. motion plaintiff-teenager’s cuit court dismissed the said, respectfully I concur. That otherwise 12(b)(6) complaint Rules under Rule Procedure, concluding that had Civil she a claim the settlement failed state because

agreement previously signed by plaintiff- specifically

teenager released Nationwide

any during pro- misconduct the settlement cess. facts, majori- I support Based on these ex rel. Darrell STATE West ty opinion’s to affirm the circuit decision Jr., McGRAW, Attorney General, V. plaintiff-teenager’s court’s dismissal Below, Appellant, Plaintiff against plaintiff- The complaint Nationwide. teenager the advice and consent of her —with litem, parents, guardian ad and the INC., SERVICES, et TELECHECK plainly Nationwide from released court — and Below, al., Appellee. Defendant liability Prac- all under the Unfair Trade No. 30731. plaintiff-teenager tice Act. could have The language releasing “bad insisted Appeals Supreme faith” Nationwide be removed claims Virginia. agreement, she her from the but neither nor representatives did so. The briefs of Submitted Feb. 2003. why parties in no presented this case reason May Decided plainly-worded now be release should plaintiff-teenager a set aside allow the apple.”

“second bite at the point be noted

One other should about dicta, majority

majority’s opinion:

opinion “no indicates that the Court found misrepresented

indication Nationwide policy provisions relating to

the ‘insurance underly-

coverages’ during time that the agreement was and settlement release

negotiated adopted parties in this majority opinion goes con- on to

case.” guardians could lia- ad litem face

tend they get the

bility malpractice “fail[ ] if if infant claimants” we policy [ ]

full limits argu- accept plaintiff-teenager’s

were plaintiff- complaint, plaintiff-teenager’s and the plaintiff-teenager against tire also filed suit part teenager the circuit seeking dam- did not additional tort-related tortfeasor ruling. part ages. court’s The circuit court dismissed *3 Attorney Googel,

Norman Assistant Gen- General, Miles, eral, Deputy Jill L. Charleston, Appellant. Jacobs, Paul, Esq., Esq., M.

Niall A. Bruce Charleston, Battle, Spilman Thomas & Appellee.

STARCHER, C.J. that a circuit

In this case we conclude ruling applied an standard erroneous for a on a protec- in a consumer We the case for tion case. remand relief. on the merits I. Background

Facts & 4, 2000, Attorney December Gener- On action under 46A-1- al filed an seq., et West Consumer (“WVCCPA”) al- Act and Protection Credit Services, leging appellee, Telecheck (“Telecheck”), corporation, Inc. national unfair, illegal, deceptive engaging in (“UDAPs”) Virgi- practices acts or complaint nia. per- court to asked the prohibiting future manent by Teleсheck. The Gener- UDAPs penalties, sought award of civil al also consumei’s, attorney fees restitution and costs. serves over

Telecheck advertises 228,000 person nationally. aWhen clients pur- personal pay for a presents a check that has a contract with chase at a store Telecheck, electronically transmits the store Telecheck; Tele- information on the check seconds) replies (apparently within charges; check sumers to fees further collect- “guarantee/no guarantee” response, with a by electronically debiting checks ac- “neg- on or not based whether Teleeheek has counts of consumers properly without their ative information” the check writer. consent, verified and improperly charging debiting; fees for such eon- harassing response “guaran- If the from Telecheck phone threatening sumers and with tee,” accepts then —if the store the cheek and letters, collect on cheeks. The subsequently the cheek is dishonored Attorney General also claimed that Tele- check”) (i.e., bank pay “bad will —Telecheck negative check’s database is effect a “de- check, the store the amount and obtain store, regis- list” adbeat and that has not assignment check *4 as a agency” required by tered “collection proceeds try Telecheck then to collect W.Va.Code,47-16-4 [1973]. amount of the from the check check writer. response If the Attorney Teleeheek is “no with The filed his com- guarantee,” accept plaint copies the store free to fifty remains complaint consumer check, (with attachments) but will not Telecheck reimburse identifying forms instanc- store for the amount of the check if it is alleged by involving es of conduct Telecheck proceedings dishonored. The evidence in the Virginia Attorney consumers that the ordinarily below showed that a store will not General claimed fit within foregoing cate- accept a check that will guar- Telecheck not gories alleged UDAP conduct. charges antee. Telecheck merchants various Teleeheek filed motion dismiss fees for its services. Attorney complaint. General’s The circuit Attorney complaint alleged The General’s initially court denied the motion dismiss that places keeps Teleeheek consumers’ an Attorney order that sustained some negative its names information database legal arguments. General’s basic The court circumstances when Telecheck knows or order, then withdrew that and issued a more through diligence reasonable should know denying limited order —still the motion previously did consumer not write dismiss, reserving but legal issues in the check; previous bad bad that check was case. theft, forgery, the result or lack of authori- ensued, discovery Limited two followed zation; or previously that a written bad evidentiary hearings, February on 9 and subsequently check cleared or the account 6, 2001, April where seven consumers was otherwise that satisfied —and this con- representatives two of Tеlecheck testified. unfairly duct causing Telecheck cer- order, The court thereafter entered annoyance tain consumers and inconvenience May 2001, denying Attorney on Gen- accepted by when their cheeks were not request injunctive eral’s due to stores Telecheek’s inaccurate informa- Attorney lief. It this order that the Gen- tion. appealed eral has to this Court.1 Attorney The General also claimed that denying circuit court’s At- The engaged Telecheck had in other UDAP con- torney General’s for a duct, including: adding illegal and excessive contained, alia, following inter charges service when on collects checks statements, findings, and conclusions: guaranteed; re-presenting that it has checks alleges Attorney banks when Telecheck knows or should junctive know necessary that there are not sufficient funds relief is Tele- because accounts, thereby subjecting engaged pattern practice consumers’ eon- Check apparently notify 1. The circuit court did not al court returned the case state on parties while, May 23, 2001, of this order until holding Mean- November State's sub- May on Telecheck removed the stantive claims Telecheck were based court, theory case federal law, they although state referred to standards of General had invoked federal law; conduct also forth in set federal and also by asserting that Telecheck was "consumer filed had event its removal reporting agency” as defined the Fair Credit petition untimely. Act, Reporting 15 U.S.C.A.Sec. 1681. The feder- industry pattern prac- established violating Consumer the West (hereinafter violating “the tice of the Act. Act Credit Protection Act”), testimony tice (1999), ... [is] violating et engaging W.Va.Code Section seq. The Court FINDS presented met the Act. in a pattern burden thus far o/[sic] 46A-1-101 TeleCheck proof from the prac- proceedings, that TeleCheck ployee of his or her evidence 10. An likely [*] engaged in an act outside the at [*] allegation engage employment is [*] point in, that a TeleCheck em- pattern [*] Ht engaged practice enough scope [*] in,

[*] [*] [*] [*] Hi Hi violating the Act. aforementioned, Based FACT I. FINDINGS OF hereby does DENY the not met 1. The General has Preliminary Injunс- Motion for General’s preponderance of its burden to show [emphasis throughout].2 tion. added in a evidence that TWV TRS two makes violating the pattern practice [sic] *5 arguments. basic Act. Hi II. CONCLUSIONS OF LAW [*] Hi H: H: Hi or First, practice” circuit court standard Attorney erroneously General used preliminary argues a “pattern context, junction and that should there- we sis Hi Hi Hi sis Hs denying fore vacate the circuit couit’s order Attorney request for 4. The General’s injunctive relief. preliminary injunctive upon asser- based Second, Attorney argues that engaged in a defendants have applied the if the circuit court had correct alleged wrongful “pattern practice” standard, preliminary should conduct. have issued. Therefore Gener- to The General has failed 5. asks to order the circuit court award al us introduce sufficient evidence establish preliminary with the accord cause believe TeleCheck reasonable request. General’s in, in, likely to engage or is practice. pattern agree o/[sic] with We point. point, On howev- the first the second Hi Hi Ht Hi Hi Hi er, proceedings we that further re- conclude testimony re- finds the injunctive lating relief would complaints by Darla garding filed judicial contrary the principle econo- be Cavender, Hodges, and Rebecca Sev- Julie Therefore, my. circuit court’s we vacate the 1) erino, of: to establish isolated incidents pro- case for further order and remand the accepted by TeleCheck its deviations ceedings relating permanent 2) practices procedures or TeleCheck lief, findings holding that and conclusions beyond employees acting scope of their by the circuit order reached employment is not to estab- but sufficient denying preliminary relief are cause to believe TeleCheck lish reasonable injunction con- applicable in, in, likely engage engaging text. pattern violating Act. practice 8. The fact that errors occurred II. 48,000,000 handling checks the course of Review Standard of past Virginia over the the State West matter, up we take years, of com- As threshold four based the number TeleCheck, argument this Court does plaints has not Telecheck’s thus far use the meant in all instances to courts uses the phrase "pattern order phrases "pattern See discussion at and also note "pat- practice,” “pattern practice,” practice.” infra. the court tern We will assume that practice.” jurisdiction legislature; not have to review amount increased interlocutory denying court’s the At- civil in equity; cases in controversies con- torney land; for a cerning the title or boundaries injunction.3 warranto, proceedings quo habeas cor- jurisdiction, Secondary School Activities Commission v. Johnston of a court to Wagner, 102 S.E.2d al (1958). (1901). Const., states We have stated that: tion in civil eases at law where the matter beas from three sources —the constitution of original jurisdiction so-called inherent mon [t]he certiorari. [t]he power power to hear The court shall have controversy, ex rel. that: state; law, art. supreme corpus, “jurisdiction” “Jurisdiction is the inherent “There are numerous definitions of is VIII, from which emanates some of its *6 scope Hunter, the substance principally decide Summerfield mandamus, see. 3 court of of this Court’s legislature; exclusive of interest ‍​​​‌​​‌​‌​​​​‌​​​​​​‌​‌‌‌​‌​​‌​​‌‌‌​‌​​​‌‌‌‌​​​‌‍and power.4 case.” West of of this Court comes S.E. determine set forth in W.Va. proceedings appeals appellate of all prohibition (in 143 W.Va. 508 Maxwell, and the com- jurisdiction part), of which is shall have jurisdic- cause.” (1964). in which and ha- tional Ins. Co. New S.E.2d 770 (in part) of jurisdiction, where there has been a conviction for a pus, late belong to the public revenue, felony or been such and in cases appellate conferred and such tioned original pus, tional cases as cases, may Under the dant. [emphasis added].6 Constitution [t]he constitutionality criminal section,5 mandamus, jurisdiction mandamus and of It jurisdiction Supreme (1963) Aetna, appellate misdemeanor shall Article jurisdiction prior of involving personal conviction proceedings relating in both civil and criminal State well as may this State and that: have such other York, Cas. Sur. prohibition and held in prescribed by in version of this constitu- VIII, Court of as in cases of habeas cor- of a prohibition all & right law where 148 prescribed by law[.] in criminal in in a circuit law. other cases Section Syllabus W.Va. Co. Appeals It other court. law. freedom or as and such addi- the defen- certiorari; shall have there 3, appellate Point 160, Federal of the appel- eases, court, men- shall 133 costs, is greater of holding value amount than This our is accord with state- three hundred dollars unless such value or ment in v. Bd. Carskadon Education of of course, jurisdic- 3. including Of the fact that this power Court has the historic to alter amend may law.”); tion that it exercise does not mean that the generally, McLaughlin, common see given Court must in a instance Audley, exercise that of James "The Idea the Common Law See, Dodrill, jurisdiction. e.g., Billotti v. 183 Virginia History: Mornings Jurisprudential West 48, (1990) (right 394 S.E.2d 32 to file Revisited,” tar v. Black & Decker 103 W. Va. petition appeal does mean not that this Court (2000). L.Rev. 125 merits); accept must thе case for decision on the Troisi, ex v. rel. Doe 194 W.Va. 459 Reorganization 5. The 1974 Judicial Amendment 139, (1995) ("The 143 exercise our language changes made certain section; in the of this jurisdiction original discretionary gov- is is changes germane the are not practical erned case.”). circumstances of the issues in instant case. Const, 3, 2., 2, Const, Compare U.S. art. cl. VIII, sec. (incorporat 4. See W.Va. art. sec. 13 clause, "exceptions regulations” accord, W.Va.Code, law); ing the common 2-1-1 grants Congress "limiting” power [1923]; 2, respect with Syllabus Morningstar see Point also Co., jurisdiction Supreme 857, appellate Mfg. Court. Black Decker 162 W.Va. 253 Ira, VIII, (1979) ("Article Mickenberg, "Abusing generally See the Ex- S.E.2d 666 Section 13 of W.Va.Code, ceptions Regulations Legislative & At- the West Clause: Constitution and 2-1-1, tempts Jurisdiction,” Supreme operate Appellate were not intended to a bar to Divest the Court (1983). principles, this Court’s evolution of common law 32 Am.U.L.Rev.497 444 468, Keyser, ruling on Dist. 56 S.E.

School 61 W.Va. not “final (1907) 834, that: argues that Court judgment,” Telecheek [W.Va. concluding part jurisdiction ruling. no to review that Const., 8, Legislature art. is 3] sec. creating range in addi given an unlimited7 However, as set forth in the Constitu [However, jurisdiction. appellate tional foregoing authori explained ties, jurisdiction defines and secures t]he Constitution scope of this Court’s right in certain it Constitution litigants principally of review forth in the set self, power respect with eases, Legislature’s Legislature cannot abro which the jurisdiction appellate to this is addi Court’s gate abridge....” tive, not subtractive or restrictive. W.VcuCode, argues that 58-5-1 jurisdiction” “the prohibits “Appellate [1998]8 reviewing court correct error appeal. the circuit court’s instant Because sion” to nn. 3 & 4. rel Allen exceptions ion, interlocutory 456 W.Va. at 292-93 nn. & 456 S.E.2d stitutional former 77, ble Subsequently, Wheeling We nee, 76 W.Va. diction as empower United Fuel Gas Co. *7 W.Va.Code, judgment The defendant in criminal action parties upon viction obtained ment of circuit court that there is delay “Unlimited” is supreme to rior as to any entry must appellate late ing add need of jeopardy protections). S.E. 84 A By S.E.2d 16 some James he jurisdiction been a conviction or which affirms judicial tribunal. circuit court party (1994), appellate jurisdiction criminal convictions one or more but fewer than all claims W.Va.Code, relate of recognized recognize this Court's v. supreme recognized judicial proceedings, judgment judicial proceedings begun in an infe- any plain Bedell, to comprehensive jurisdiction" court Earlier, writing separately in State ex includes number M.B. of to a civil action 58-5-1 upon an Legislature Justice tire orders (1995), circuit court or from terms of "civil of "such other v. (1914). of is limited to controversies court of "finality” 193 W.Va. express 58-5-1 constituting 85 S.E. 529 circuit court in prescribed Carolyn as to such claims that this Court's [1998] an inferior court. appeals 3 accurate, Cleckley P.S.C., Justice in some circumstances. express by permitting 4, Park Com’n Hotel See also determination [1925]; states: appeals criminal is limited: enlarge M., principle. Legislature's power no from a final may Constitution 32, Cleckley stated direction strictly speaking. violation power substantial "antiquated (1915) (the and the 193 W.Va. just appellate jurisprudential 39, final be authorized appeal law” did not Ex Parte in that from final an order of cases,” may appeal that former 454 S.E.2d the state to reason for v. judgment to review discussed appellate at criminal Id., parties. for the "other appel- 19-20 juris judg- opin there revi 289, dou Bor aris- con con- 193 or & v. not be read to such orders under our We have been entered guage recognizing hear exercise requirement volve interlocutory appeal W.Va. erally, relief. relating control Rules under West 210 W.Va. at 210 these Code, Court tional We may et new trials could not foregoing, Telecheck cannot 58-5-1 Restaurant stating liminary Court, 479 S.E.2d 876 examine W.Va.Code guage utory [1925], Sakhai, seq.” recognizing that held that the stated 1998 revision of Court, encourage W.Va. to hear an 4n. 54(b). Subsequently, in appeals statements, the orders relating any limitation on the Court’s and at of that: lacks [1998] civil actions in which on the issue of of the conflict to injunction), et 726, Court had Civil (emphasis 210 W.Va. thereby Employees 563, "operates only to echoed Justice particular amount seq., regarding appellate except Virginia Rules that an "[ujnfortunately, order conformity 573, W.Va. at 220 jurisdiction 559 S.E.2d to review this Court to [1998] deleted all W.Va.Code, appeal Procedure, 558 S.E.2d 363 “place with W.Va. support its interlocutory 1998 statute’s 558 pursuant to been remanding this Court’s for those certified as "final” such Justice 58-5-1, added). W.Va.Code, 716, appealable jurisdiction Int. constitutional operate S.E.2d interlocutory (granting appeal deprived with potentially Virginia legislature Union, of this Court to review statutory ‍​​​‌​​‌​‌​​​​‌​​​​​​‌​‌‌‌​‌​​‌​​‌‌‌​‌​​​‌‌‌‌​​​‌‍559 S.E.2d at Cleckley’s amendment of W.Va. temporary 58-5-1 Const, McHugh, and to n. clarify contention 53. rely et interlocutory at current to Wolfe seq., orders final Civil deletion of lan (2001), 58-5-1 did civil action 373. In Foster jurisdiction powers.” 210 198 W.Va. on oí art statutory lan proscribe the to review an controversy.” [1998] amendments jurisdiction. relief in this remove 54(b) orders and amend light unconstitu W.Va.Code, VIII comments, writing judgments 53 Procedure, ability and practice. granting that this jurisdic interloc we held Welton, (2001), despite sec. of 58-5- order could gen 215, pre in to to at

445 v. County Leone Medical son Bd. a trial County v. proceeding.” court of Educ. Jefferson Cal., Ass’n., 61, 64, Bd. Education 15, 22 Cal.Rptr.2d 94 Cal.4th 183 W.Va. 393 S.E.2d (2000). (1990) (circuit 660, 666, 191, P.2d 653 granted preliminary 995 195 Constitution, VII, injunction pro art. sec. 3 work stoppage; associa “appellate jurisdic injunction vides that tion appealed, upheld); Syllabus this Court has 11, Washington Stuart v. Lake equity.” tion” over “civil lan Point Realty cases This 627, Corp, guage power does not limit this Court’s to 141 W.Va. 92 S.E.2d 891 [1956] (“... review and equity correct error cases in refuse Moreover, judgments.” longstand “final our modify, temporary continue or dissolve a or a ing jurisprudence injunction effect that ... will not be dis discretionary turbed on possesses appellate juris Court of a cleat- absence discretion.”) (em interlocutory showing diction review lower court of an of ... abuse added); Smith, in equity relating Brady v. prelimi orders cases phasis 139 W.Va. See, nary 259, (1954) temporary relief.9 (appeal 79 S.E.2d 851 of order NCAA, e.g., v. 543, Hart refusing temporary injunction; 209 W.Va. 550 to dissolve in (2001) (appeal 79 awarding junction S.E.2d of order v. appeal); dissolved on Huffman Chedester, vacated); preliminary injunction, 73, (1943) Sams order 126 W.Va. 27 272 S.E.2d 315, Goff, (1999) v. injunction 208 W.Va. 532 (temporary granted filing S.E.2d curiam) (per exhibits, (appeal granting filed, pre complaint answer motion injunction; liminary injunction denied, held appealed); dissolve denial order By Com’n, Through appropriate); & Winter v. 200, McGraw State Road 116 W.Va. Imperial Marketing, v. (1935) (appeal 196 W.Va. 179 S.E. 73 dissolving (1996) (“The injunction); O. Hommel defendant Co. Fink, appeals (1934) an order of Circuit 115 W.Va. 177 S.E. 619 County granting injunction Kanawha in (preliminary upheld appeal); Wheeling Park Com’n v. Ho junction-”); Morley United Fuel Gas Oil & Co. Gas Co., Employees, tel and Restaurant 73, 131 198 W.Va. (appeal 101 W.Va. S.E. 713 (1996) (appeal prelimi 479 S.E.2d 876 injunction, dissolving temporary decree nary injunction reinstated).10 restricting picketing); decree reversed and Jeffer- 9. We Hospital v. Bd. Virginia Rules Civil Inc. v. Kaufman, 181 W.Va. be apparently depending on the circumstances. See Branсh v. dissolution was State injunction exhibits, whom a our 1998 liminary injunctions in Camden-Clark Memorial temporary restraining as a TRO or involved a substantial is that notice & (1973) (whether injunction order is characterized S.E.2d 455 temporary restraining 1979). 163 F. 678 Prior to our appealable); Brass given of Educ. of (2002). preliminary injunctions may explained for Harris, v. and affidavits. The merits of the whenever adoption preliminary injunction a trial order Barker, a not Turner, (1949) (temporary restraining (C.C.A.Va.1908) (appeal preliminary injunction, Courts have held that both TROs Robeson accord, 579 S.W.2d 53 the differences between ex requirement ex court to issue a opportunity uncommon parte 55 Ill.2d possible appealable Procedure, orders order); Plant Process right); County, —based TRO 384 S.E.2d 173 in (“TROs”) procedure to be heard must Bohn Aluminum Taylor order practice 230 N.C. (Civ.App. Ashland Oil is 303 N.E.2d 1 party against sought, preliminary its issuance Equipment, allowed complaint, because v. appealed, in Breese, (1989) it was Texas order parte West pre- pre this it refusing preliminary injunctions;” review. part) parte plaint, hearing lution of other cases on a motion to dissolve the now ings conclusions of cedure, that a number of our earlier cases rules and motions to dissolve liminary injunction *8 held several hours review first time in an adversarial (1938) (injunction granted on sworn bill of com- Tennant garding preliminary injunctive relief is made. our this Additionally, language recognizing jurisdiction inclusion be taken seem to be whenever would then ("Questions may requirement interlocutory Rule Cf. preliminary injunctions, practice providing Kilcoyne, also in 52, requires findings equity.”). law on motion to dissolve possible relatively ‍​​​‌​​‌​‌​​​​‌​​​​​​‌​‌‌‌​‌​​‌​​‌‌‌​‌​​​‌‌‌‌​​​‌‍in West injunction proceedings prior commonly be this later). when a court is injunctions orders related to the disso- that had been W.Va.Code, area be certified before permit rare, this Court's This arise from injunction. context for Rules Civil Pro- 53-5-8 in —motions practice explains examined any proper appellate contested light 58-5-1 and the fact one in a “granting decision re- of fact and recognizing granted of modern [1955] rulings power as in S.E. 559 See, purpose appeals [1925] hear- e.g., (in оn or ex 446 case, may it confi- our action. And such

In addition to the exercise of discre- jurisdiction tionary appellate vigor- inter- dently predicted review that Telecheck would Broadwater, temporary bition. considering locutory grant of cal 1938 also (1997) (prohibition on occasion reviewed (prohibition granted requiring dissolu- See, orders preliminary Waters, petitions e.g., State ex rel. U.M.W.A. W.Va. regarding seeking relief, injunction); to review court’s such orders preliminary this Court writs of S.E.2d 489 Truby v. S.E.2d prohi- Lo- or junctive relief. review tionary jurisdiction the issue of this Court’s exercise of W.VaCode, ously resist This of the order hypothetical was not a “final any suggestion the fact that situation granting preliminary review would judgment” per illustrates orders preclude our preliminary regard- discre- why in- temporary injunction); preliminary tion of Ashland Oil nicety, simply not or an lief is technical Kaufman, 181 W.Va. (1989) (writ aspect granted stop procedural role of prohibition arcane injunction).11 judicial If this did branch. Court not have enforcement of orders, рower poten- such review Moreover, the contention Telecheck unfairly tial a circuit court to wreak power of this review the circuit Court cannot hardship party entirely on a would be almost preliminary in- regarding court’s decision jurisprudential Nothing in our unchecked. junctive flies in the the instant case history suggests that such is or situation common face of fundamental fairness and Moreover, this should be the case. Court’s For what if circuit court had sense. important- to review such orders enjoin preliminarily decided Telecheck ly public policy at advances set forth it company such a fashion believed Cmst., Ill, 17, guaranteeing art. W.Va. sec. reasonably could not conduct its business open of this shall “[t]he Courts Virginia? can be such a there ...,” meaningful and makes fundamental little would be before doubt (if hours), guar- process due of law that is days asking fairness and within Court Ill, Const, art. 10— stay that we and reverse the circuit court’s anteed sec. request for of a courts have held that orders Whether a review "Numеrous state dissolving, refusing interlocutory regarding granting denying, ... circuit court's preliminary injunctions temporary junctive styled petition appeal dissolve for relief is modify, appealable [as are orders that prohibition may may are] a writ of as a amend, injunc- or refuse to amend significance given practical in a case. (cita- Injunctions 42 Am.Jur.2d tions.” Sec. procedures principles the different omitted). tions roughly with the two forms of review associated correspond to be to the different issues tend Although ordinarily speak this Court’s with the two kinds of review. associated jurisdiction” "original with our in connection proceeds expe- prohibition, this Court in more prohibition, to issue writs of constitutional and on a record limited to the dited fashion reviewing stated that in the action one pleadings presented; granting whereas tribunal, judicial of a lower "the of such issuance petition appeal, of a a record not, strictly speaking, an exercise of a writ ordinarily prepared, procedure and the takes jurisdiction, only original after a suit issues largely longer. ones of law Where issues ...*** entered in an inferior court has been *9 clearly erroneous actions of the court below pure not] it an exercise of [while does constitute asserted, may prohibition appro- be a more ly original jurisdiction to no more can it be said interlocutory priate to review of an method seek is, jurisdiction; appellate of be an exercise regarding injunctive relief. But determination however, protects by a means which a court its present, where a factual record substantial jurisdiction appellate The historic use of [.]*** where the issues for review are more nuanced by prohibition directed writs of mandamus as lower and fact-driven—such court’s exercise appellate an to an inferior court been balancing equities of discretion in revisory appellate power over the inferi- —then exert the appropriate. more In tire route of Carpentertоwn Coal Coke Co. v. or court.” & 94, 426, this Court has the discretion to not Laird, 98, (1948). either 428 360 Pa. 61 A.2d jurisdiction Bd., to review the lower supra exercise its (stating See v. Medical also Leone disfavoring "piece- And our of court's action. jurisdiction” low "appellate to correct errors . of review of the actions lower courts supervisory meal” er of writs courts includes use strong jurisprudential principle. just appeals). mains and not direct

447 thereby protecting rights, appellate all of the other diction to undertake review of the protections, privileges that are afforded denying circuit court’s order our Constitution statutory injunc- com- mon law.12 meritorious. governing pre- statute the issuance of Therefore, foregoing based on the liminary injunctions under the in WVCCPA discussion, Virginia we hold that Con brought by General, cases

stitution, VIII, 3, grants article section which W.Va.Code, 46A-7-110 [1974]: appellate jurisdiction this Court of civil cases jurisdiction equity, grant includes of respect With to an brought action appeals interlocutory enjoin hear from orders chapter violations or uncon- relating circuit courts agreements scionable fraudulent un- temporary conduct, relief.13 attorney general Telecheck’s conscionable argument juris- that this may apply Court does not have appropriate to the court for 13. The Haines this statute Hosp. v. W.Va. members of injunction rel. Doe v. na); with Slater, Blue Cross Blue Shield lar Code, litigation. view substantial 5-5 a "liberal view of especially aside default Court's injunctive action cree S.E.2d preserve judicial economy igas, ders though sparsely (order 690, (2001) (1995) (order denying refusal, may may thereupon the orders entered in the shall refuse to and the or to the This Court's order); When a [1923], appeals, 510 S.E.2d 764 relating the same status as circuit light Mitchem v. awarding 170 W.Va. interlocutory standing; stating reinstating 389, 118 W.Va. (discovery & jurisdiction Court of Sanders, —but Coutts, original papers presented when an relief is Troisi, See requires 202 S.E.2d 632 State ex judge 382 S.E.2d 583 rights”); statute that carried over into W.Va. the court of judgment). or a [1923], to class action pendente exercised, discretionary jurisdiction 526, General also contends that this Melton, award Appeals award the presented judge 210 W.Va. states (1981) (order regarding 194 W.Va. case when 16 Va. 423 doing in vacation with his is also well-established—al order); supported some discussion. In orders rel. Moore to review orders ex rel. Charles Town General interlocutory (1998) (liquidation proceed court, 295 S.E.2d 16 judge Parsons v. motion to 191 S.E. 524 as that this Court has taken thereof so appeals lite held W.Va.,Inc., trial); follows; in view the General's State ex rel proceedings and avoid order is injunction, they (1973) (order setting injunction. or standing); 118, alimony); (2.Munf. W.Va. v. areas other than judges judges would be 459 S.E.2d 139 McFoy Canterbury, could quash subpoe judge supreme 556 S.E.2d 85 vacation, order "affects under a simi- McCoy, (per appealable,” to the court contention, (1937) (de (1982) (or relating 203 W.Va. —and 1811), piecemeal who were grant Slater v. v. Amer Clark State ex curiam) Mayo thereof, copy need to acting court, class who 53- not re an v. *10 Summerfield Lewis Employees, Intern. late tutional recent cases peals original jurisdiction. itly empowered been capаcity, the instant case. tion that Power arising that we have granted by include Code, 53-5-5, ordinate ity opinion's dures set forth in our follows: "[When] an rary injunction granted by a trial chancellor.” Court W.Va Wheeling Park as diction cuss the procedure one of the approvingly court could injunction that was made in (1957), [1923] conclude that the In Lewis v. 675, [1923] have 142 W.Va. at vacation, judges at least jurisdiction, 479 S.E.2d 876 97 S.E.2d at 292. recognized by Judge Browning agreed [under the for the Co., superior is not from the inherent injunctions, this Court jurisdiction.” underlying but as a is awarded to review the circuit court’s action in Asseff, judges set forth in that statute. 143 Va. has been exercised apparently was of the same W.Va.Code, theoretically recognized germane recognized exercise of this appellate Maxwell, conclusion that "an mentioning Const., Com'n Hotel and Restaurant years, state's see note 4 to make additional judge] original jurisdiction Virginia equivalent 142 ‍​​​‌​​‌​‌​​​​‌​​​​​​‌​‌‌‌​‌​​‌​​‌‌‌​‌​​​‌‌‌‌​​​‌‍W.Va. judge of the supervisory original jurisdiction Union, AFL-CIO, Nichols agreed 405, nor is the Mayo holding Virginia basis for the pursuant (1996). art. AId. supreme not had it can be supra. court, acts not in an 53-5-5. of another court of co- 130 S.E. — Supreme the issue common dissolve a In VIII, one with the distinction W.Va.Code, v. supra, separate 670, and West at Lewis, effect Legislature explic- or a to the court of of the sources of Central 294. Our more occasion pursuant sec. 8 court—a with the because [is] explicit 97 S.E.2d 289 fairly original juris- 764 142 W.Va. at judge law of Court of State ex rel. as granted by we our opinion procedure grants event, (1925) appellate of W.Va. power See, does appeals. Virginia Virginia seen as to this 53-5-5 thereof tempo- injunc- quoted consti- major- proce- appel- trial e.g., dis- Ap- as 448

temporary relief respondent, W.VaCode, 46A-6-101 provides that of shall be “liberal- provisions the 46A-6-104 proceed- pending final determination however, shall not ly [it] be construed ings. If court finds after practices prohibit acts or which construed to respondent upon notice to the held development in relation to the are reasonable cause believe is reasonable there preservation of business or which are not likely is engaging in or respondent ” injurious .... public interest See sought engage in conduct Inc., McFoy Amerigas, generally, v. 170 strained, may grant any temporary relief (1982). W.Va. 295 16 We have S.E.2d appropri- restraining it deems or that: stated ate.14 [WVjCCPA pro- purpose of the Impe Point 1 of State v. Syllabus In unfair, illegal, tect consumers 346, 472 Marketing, 196 W.Va. rial practices by providing deceptive acts or an (1996), 792 stated: we would for consumers who avenue reviewing exceptions to find- difficulty proving their case otherwise have ings support- of law of fact and conclusions more traditional cause of action. under a prelimi- ing granting temporary Runyon ex v. Ponti State rel. McGraw Scott nary injunction, apply a we will three- ac-Buick, 770, 777, 461 S.E.2d W.Va. pronged standard of review. deferential (1995). 516, 523 granting the final order We review W.VaCode, 46A- In accordance with and the ultimate dis- [1974], 7-110 the issue before the position of discretion stan- under abuse was cоurt was whether there reasonable dard, Corp., 168 West v. National Mines engaging was cause to believe that Telecheck (1981), 285 S.E.2d W.Va. likely engage decep in or unfair or underlying the circuit court’s we review alleged by practices Attor tive acts or clearly findings under a erroneous factual ney found such General. If trial court standard, questions of law and we review cause, grounds then the court had reasonable 4, Burgess Syllabus de novo. Point injunction. appropriate of an issuance Porterfield, Imperial Syllabus Point Mar See (1996).15 (1996). keting, 472 S.E.2d 792 mind, consider With standards we these applying this stan- instead parties’ arguments. dard, predicated decision the circuit court on the issue whether III. “pattern practice” improp- proved had er conduct Telecheck. Discussion Although “pattern practice” phrase supra, As in I. discussed order, permeates the circuit court’s alleged that conduct Telecheek WVCCPA, phrase appear in nor does W.VaCode, was in violation of 46A-6-104 commonly that it is dоes our research show [1974], provides that: protection used the area consumer regulation phrase “pattern law. The competition un- Unfair trade methods used, alia, in area of deceptive practices practice” inter fair or acts or generally, law. Words trade or discrimination See [UDAPS] in conduct Phrases, In this hereby “Pattern or Practice.” declared unlawful. commerce are course, Cir.1937) Torr, (2d review- instant 446 regulation SEC v. 87 F.2d See (test ing in trade case is a court’s decision not why to en forego- defendants are or about whether injunction, but we see no reason accord, statute); prohibited by gage in actions applicable of review standard should Burd, Cir.1943). (2d Henderson v. 133 F.2d well. to this decision as Holt, Evergreen Wash. Collectors See also (conduct App. vio 803 P.2d act was lated set debt collection standards practice). deceptive unfair or trade *11 law, used, all, showing “pattern prac- of only judgment the a or if at after a final area has of or tice” сertain conduct conditions means been that made there have been in fact viola- showing Then, that the or conditions conduct tions of the WVCCPA. if the evidence regular, repeated, opposed or intentional —as simply shows that the violations were of instances the conduct or conditions be- illegal isolated and accidental of instances merely isolated and Proof of conduct, accidental. monetary may a penalty be im- practice” “pattern may a or in this context posed. any Telecheck has not cited us to permit finding discriminatory then of a “pattern practice,” case in which or or even animus, relief, systemic of or the award etc. repeated “course of and willful violations” See, e.g., Greyhound Geiger, Lines-East v. applied standard has in a been consumer 174, 135, 179 W.Va. 366 S.E.2d 140 protection preliminary injunction in case the (1988); Rights Bloss & Dillard v. Hitman context; and our research has not identified Commission, 183 W.Va. 398 any such case. (1990); Hunter, 528, 530 U.S. F.2d Insofar we can determine from the volu- Cir.1972).16 (4th record, Attorney minous the General did not statutory language The in closest phrase “pattern practice” use or his is, “pattern practice” WVCCPA to or —that pleadings arguments, or and Telecheck has in meaning, closest words —is any not cited us to such To instance. W.VaCode, found 46A-7-111 [1999]. This contrary, the record shows that it was Tele- provides may penalty section civil be essentially check that asserted —as the core imposed for each violation of the WVCCPA Attorney of its defense to the General’s re- “if the court finds that the defendant quest preliminary injunctive for relief —the engaged repeated in a course of willful argument Attorney that the General had to this chapter.” violations of “pattern prove practice.”17 ruling or statutory Attorney

Under the of request prelimi- scheme WVCCPA, then, repeated nary injunction, the “course of viola circuit court used a applicable prelimi tions” test is not standard that was introduced and advocated nary by context —but rather Telechеck.18 Unlawful Practice and Grievances: Disciplinary Board v. Virginia Lawyer Disciplinary opposition Rules and (W.Va. used resistance they negligence any appropriate torney general may granted by an issue of ed.) for inclusion able cause cases closed rights granted by Investigative Telecheck’s counsel See Procedure for Committees on Additionally, Whenever the persons persons phrase "pattern also, concerned isolated Fair lawyer disciplinary Regulations Housing e.g., attorney has been denied this article and such denial raises general public importance, within Panel the full believe malpractice, W.Va.Code,5-llA-15(a) where attorney general Act): pattern Sims, commence such concerned. (2002); began Ch. article, in a enjoyment past court, errors for a the discretion action is any person pattern practice” his cases, five Chapter and in the West Rules, a civil [emphasis presentation practice years Legal judgment has reason- see warranted, any practice any group reopened III, action in see Bar because Lawyer Ethics, the at- [1992] group of the rights count been add- 18.Telecheck junction if it Telecheck hand. was a standard or not address practice conduct occurred, also anyone's duct conduct or the result of a technical clusory W.Va.Code, they conduct that was was an "unfair or each of the enough that were 20 infra. type use of had base vigorously Telecheck did not the standard allegedly illegal alleged alleged by Attorney recitation occurred, of behavior ... General asserted in his General has received ... definition.” We note that Telecheck their illegal. separately did ] types 46A-6-104 saying That’s additionally argues asserted that vigorously dispute number of the allegation allegation disputed alleged by was not a regular may alleged deceptive identified circuit court’s only conduct— be defended because dispute pattern that it's a whether some of the slip-up. was made—for each [were not conduct occurrence, "complaints some statutory language, (i.e., act or specific types General, General had ever isolated incident that some of the complaint other only "conduct On pattern practice numerous complaint such practice.” as a con- the other although conduct, that the see note court’s XYZ con- did *12 proceedings discussion, manded for on the merits hold foregoing we on the

Based injunctive permanent relief.21 issuing a statutory standard that 46A-7-110 preliminary [1974] —whether under “there is reason- W. Va. Code, Order Vacated, Remanded. respondent is to that able cause believe concurs. Justice DAVIS likely engage in conduct engaging in or is to by Chapter not [prohibited 46A]”—does MAYNARD concurs. Justice requirement there first be that clude the DAVIS, J., concurring, part, “pattern practice” of violations proved a dissenting, part. conclude the statute.19 We “pat- hinging its on a decision erred General, Attorney state this practice” standard.20 tern McGraw, Jr., appealed from Darrell V. denying his

circuit court order injunction against Ser- preliminary Telecheck IV. vices, actually addressing its Inc. Prior merits, majority opinion examined Tele- Conclusion had no contention that this Court check’s in the as this action was Inasmuch filed appeal jurisdiction to hear an from an order al- year significant and a record has injunction. preliminary ma- denying a made, ready we re- conclude been jurisdic- jority rejected opinion Telecheck’s pre- manding proceeding for a novo de argument and concluded that tional judicial liminary relief would be wasteful of jurisdiction to an from hear circuit court injunction. The order of the denying preliminary resources. I an juris- regarding majority resolution of concur in the reversed, challenge. is re- dictional case vacated 19.The Dictionary 46A-6-104 common WVCCPA, complaint) result of “bona fide errors.” result of a "bona fide error of Code, is a priety ror. ...” adapted to аvoid make does not separate fense has Moreover, order to that conduct that "habitual 101(8) an unfair illegal illegal violate occurred, the maintenance defense that might 46A-6-104 no of the circuit court’s conclusion The use of the the effect that ruling Id. "practice.” meaning include errors or mistakes of "act,” "act” and action or this is a defense means [1974] have violated the the WVCCPA the conduct Because and the UDAP claims made relatively complex provides that certain conduct applicability on that issue. General also without deceptive [1974] Thesaurus, is relevant would otherwise (and performance.” any was not done in this of the location of this "practice” proving any disjunctive may necessarily such violation procedures if it is word vel non act or conduct only be challenges W.Va.Code,46A-5- American Attorney WVCCPAwas the fact notwithstand- violation of unclear, done "practice” scheme after a any practice”). its own terms term also Oxford this seсtion by proving reasonably a violation event, Telecheck General's was the proving "or” to law Edition finding or er- by case. Desk pro- de- A 20. The circuit court 21. To Bureau permission to proper checks area by permitting not before pears circuit court alleged by ings subject consumers cludes sumer garding illegal, lecting, Our instructions to conduct liminary 1989). good. Additionally, about likely unfairness about protection unfair or without undue burden or risk. information about whether of UDAP debt charges, any relief, provide perfectly stage. Lockport, whether much us. We observe that Telecheck clearly requirements withdrawing form of their did collection, further occur, do so—is but to businesses in the not scrutiny. deceptive General— misleading laws. clear: this Court credit-worthiness, which in- have a valuable commercial service rule on these also the lower court are to proceedings Inc., or whether it constituted proceed dissemination of informa- conduct See, funds did also conduct. Because including right е.g., applicability not make letters, without verifiable F.2d clearly heavily accept had occurred or specific like Pipiles relating issues, be their checks is not adding im- double-col- protected regulated any personal v. Credit (2d they conduct of con alleged proper acting relief. find- pre- Cir. are ap- *13 reviewing pre- Although “pattern” when the issue term statute. the was majority opinion on appeal, statute, sented the con- not in “practice” the the word was applied cluded that the circuit court the Therefore, dispositively used in the statute. wrong legal majority opinion, standard. The the circuit court’s order should have been through a in terse statement footnote has construed mean that there was insufficient presented the tossed aside issue on of an unfair deceptive evidence act or proceeding and remanded the case for a “practice”; and there was insufficient evi- permanent injunction. claim a for I the be- an deceрtive dence of unfair or or “pat- act majority opinion incorrectly that the lieve tern” with being surplusage. the latter analyzed law facts of this the and case. For below, the reasons out I set dissent. Majority’s Disposition Illogi- B. The is Legally Wrong cal and A. The Circuit Court Found Insuffi- Deceptive cient Evidence of Prac- I agreed majority if with opinion Even the tices phrase the circuit court’s use of the 46A-6-104, § Under W. the At- Va.Code fatal, “pattern practice” I would not torney present General had to some evidence join disposition case chosen the “in engaged decep- unfair or majority. practices!.]” acts or The tive circuit court prove found presented the evidence did not sought specific The General an deceptive “pattern unfair or this Court. The that, practice.” majority opinion The found sought provid- find it have Court using phrase “pattern practice” prelimi- ed sufficient a evidence to warrant order, its applied wrong the circuit court nary injunction, and therefore this Court legal According majority standard. to the should Franklin relief. See D. opinion, court should deter- have al., Cleckley, Litigation et Handbook on West mined whether there was evidence that Tele- Procedure, Virginia Rules of Civil deceptive check “in unfair or acts or (“[W]hen a circuit court refuses award practices!.]” majority made dis- preliminary injunction Supreme simply tinction where there none. is may, upon proper shoiving, award ‘pattern’ ‘practice’ “[T]he terms and added.) preliminary injunction.”). (Emphasis meanings. common ‘Pattern’ is as ‘a defined Alternatively, sought regular, mainly way unvai’ying acting have this Court and remand reverse the case doing,’ ‘practice’ frequent defined ‘a hearing preliminary for another on the ” action; habit; or usual usage.’ junction request purported under the correct Russell, Wash.App. 848 P.2d 750 legal standard. (1993) (quoting Webster’s New World Dictio- majority (1976)). opinion, unprecedented words,

nary In other manner, has of the determined the issue meanings, their under common terms preliminary injunction by-passed, pattern practice can be interchangeable. true, directly being quite proceed That it the trial court should to the becomes evident relief, majority opinion disingenuous permanent injunction. issue of This attempt (indeed show that court the circuit requested which was not until the applied wrong legal standard. attorney decision this case no could have relief), imagined illogical seeking such majority attempted Had the to be “fair” in has no in law. I basis have not discovered it would have reasoned Anglo-American case the annals of “pattern” surplusage. term was harmless jurisprudence, appellate ‍​​​‌​​‌​‌​​​​‌​​​​​​‌​‌‌‌​‌​​‌​​‌‌‌​‌​​​‌‌‌‌​​​‌‍wherein an Unfortunately, majority opinion was de- sponte stripped litigant right has sua predestined termined to reach a outcome. prelimi- on a have a Consequently, majority opinion welded nary injunction, pro- case to phrase “pattern practice” together ordered the directly show that is not applicable found in the ceed 65(a)(2) 65(a)(2). “any Rule Under proceeding.1 upon application received evidence Obviously, majority opinion a defi- had be admis- which would by-passing reason nite becomes trial on the merits sible That reason injunction hearing in this case. trial and need not part record on the following language from the is veiled Cleekley, Liti- repeated upon the trial.” opinion: significant record majority “a Rules *14 gation Handbook West made, already that re- we conclude been Procedure, at 1022-1023. As result Civil prelim- proceeding novo manding for a de technically majority’s disposition, there judicial re- inary would be wasteful of injunction hearing. preliminary no been words, sources.” In other rely on Consequently, cannot Rule Telecheek huge apple and bite at the General had 65(a)(2) having reprove and avoid issues Therefore, majority decided failed. already proven preliminary were by leav- simply assist injunction aside proceeding that was tossed injunction unre- preliminary issue by majority. parties litigatе ordering solved injunction This is issue. concur, part, foregoing, I view the disposition. disingenuous dissent, I part. am state authorized majority’s logic to turn decision sepa- in this Maynard joins that Justice me because, necessary upside down was the law opinion. rate legal stan- even under the so-called correct dard, have been General would injunction preliminary

denied remand. is, absolutely in the were no facts

That there

“significant properly showed record” had established evidence improper having engaged prac- point triggers language This contained

tices. Virginia injunc- Cleekley, Litigation by-passing preliminary Handbook on West Instead of Procedure, issue, majority required Civil at 1023. other could Rules of words, the disposed sound, 65(a)(2) legally major- logical to be to be of under Rule issue ity opinion "Under have concluded issue Rules of Civil Procedure. could to, 65(a)(2) given preliminary should be consolidat- trial discretion Rule Instead, permanent injunction request by sponte parties, ed with the issue. sua 65(a)(2), logic majority out to be threw order the trial of the action on the merits claim be with the ordered advanced and consolidated injunction.” can. application for tossed trash

Case Details

Case Name: State Ex Rel. McGraw v. Telecheck Services, Inc.
Court Name: West Virginia Supreme Court
Date Published: May 23, 2003
Citation: 582 S.E.2d 885
Docket Number: 30731
Court Abbreviation: W. Va.
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