Department of Professional and Occupational Regulation, etc. v. Best Buy Stores, LP

CourtCourt of Appeals of Virginia
DecidedFebruary 4, 2014
Docket1483132
StatusUnpublished

This text of Department of Professional and Occupational Regulation, etc. v. Best Buy Stores, LP (Department of Professional and Occupational Regulation, etc. v. Best Buy Stores, LP) is published on Counsel Stack Legal Research, covering Court of Appeals of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Department of Professional and Occupational Regulation, etc. v. Best Buy Stores, LP, (Va. Ct. App. 2014).

Opinion

COURT OF APPEALS OF VIRGINIA

Present: Judges Huff, Chafin and Decker UNPUBLISHED

Argued at Richmond, Virginia

DEPARTMENT OF PROFESSIONAL AND OCCUPATIONAL REGULATION, BOARD FOR CONTRACTORS MEMORANDUM OPINION* BY v. Record No. 1483-13-2 JUDGE GLEN A. HUFF FEBRUARY 4, 2014 BEST BUY STORES, LP

FROM THE CIRCUIT COURT OF PRINCE WILLIAM COUNTY Lon E. Farris, Judge

Elizabeth B. Myers, Assistant Attorney General (Kenneth T. Cuccinelli, II, Attorney General; Joshua N. Lief, Senior Assistant Attorney General; Steven P. Jack, Assistant Attorney General, on briefs), for appellant.

Martin Schubert (John D. McGavin; Bancroft, McGavin, Horvath & Judkins, P.C., on brief), for appellee.

The Department of Professional and Occupational Regulation, Board for Contractors

(“Board”) appeals a ruling of the Circuit Court of Prince William County (“circuit court”)

reversing the June 5, 2012 decision by the Board finding Best Buy Stores, LP (“Best Buy”) in

violation of 18 VAC 50-22-260(B)(8) and -260(B)(27). The circuit court reversed the Board

explaining that the Board reached an arbitrary and capricious decision. The circuit court further

ruled that “as a matter of law” Best Buy is not required to obtain “a contractor’s license with a

gas fitting specialty.”

On appeal, the Board contends that the circuit court erred 1) in not finding waiver of Best

Buy’s argument that the installation of a replacement gas dryer was not the act of contracting

* Pursuant to Code § 17.1-413, this opinion is not designated for publication. which requires a contractor’s license with the appropriate gas fitting specialty classification,

2) by using the incorrect standard of review in interpreting the Board’s decision that Best Buy

was acting in this matter as a general contractor, and 3) in its interpretation of §§ 54.1-1100 and

54.1-1102(A) of the Code of Virginia and related regulations of the Board when reviewing the

Board’s decision that Best Buy was acting in this matter as a general contractor. For the

following reasons, this Court affirms the decision of the circuit court.

I. BACKGROUND

On appeal, “[w]e view the facts in this case ‘in the light most favorable to sustaining the

[Board’s] action and take due account of the presumption of official regularity, the experience

and specialized competence of the [Board], and the purposes of the basic law under which the

[Board] has acted.’” Nat’l College of Bus. & Tech., Inc. v. Davenport, 57 Va. App. 677, 680-81,

705 S.E.2d 519, 521 (2011) (quoting Sentara Norfolk Gen. Hosp. v. State Health Comm’r, 30

Va. App. 267, 279, 516 S.E.2d 690, 696 (1999)). So viewed, the evidence is as follows.

Best Buy is a retail sales business specializing in consumer electronics, major appliances,

home office products, entertainment software, and photography equipment. This case began

with a customer’s purchase of a gas dryer. In keeping with Best Buy’s policy, a sales contract

was signed by both the customer and Best Buy’s sales representative before the purchase was

consummated.

Best Buy maintains a standing Appliance Installation Master Services Agreement

(“agreement”) with Optima Services Solution, LLC (“contractor”) to perform or arrange the

installation of all gas appliances sold by Best Buy in Virginia. Contractor “is an independent

contractor in the business of providing and engaging Subcontractors to provide delivery,

installation, re-installation, call center services and related installation and delivery services as

may be required to satisfy the needs of [contractor’s] clients.” The agreement between Best Buy

-2- and contractor designates contractor as the “General Contractor.” Additionally, “[n]o Best Buy

employee ever installs gas appliances in Virginia” and Best Buy’s agreement with contractor

requires that contractor “be licensed under all applicable laws, rules, and regulations.”

On March 8, 2011, Stephen Bender (“Bender”) purchased a gas dryer from Best Buy in

Gainesville, Virginia. In addition to paying for the gas dryer, Bender paid for the installation of

the dryer at his home and paid for required accessories including a dryer vent kit and a gas line

cable, which were necessary to comply with the building code. Pursuant to the agreement,

contractor arranged for Washington Home Services (“subcontractor”) to perform the installation,

although subcontractor was unlicensed in Virginia. Upon learning that the required gas permit

was not obtained by subcontractor, Bender complained to Best Buy’s customer service – staffed

by contractor – who arranged to have a properly licensed subcontractor inspect the installation.

On March 15, 2011, Bender filed a complaint with the Board. On September 20, 2011, a

report of findings was submitted to the Board, alleging Best Buy violated 18 VAC

50-22-260(B)(8) (failing to use a legible written contract that was signed before commencement

of work) and -260(B)(27) (practicing in the specialty area of gas fitting without a gas contractor

license). In response, the Board conducted an informal fact-finding conference (“IFFC”) on

February 17, 2012.

At the IFFC, Best Buy presented evidence regarding its installation policy. Best Buy’s

representatives testified that under Best Buy’s business practice, the customer signs the

Appliance Installation Terms and Conditions form at the Best Buy store at the time of purchase.

That form is “very detailed” and “makes it very clear that a third-party will be performing the

installation. At the time of the sale, Best Buy salespersons ask questions about the customer’s

existing connections and appliances and, if necessary, require the customer to purchase

additional accessories to ensure they will be in compliance with applicable building codes after

-3- the installation. Best Buy was unable to produce the Appliance Installation Terms and

Conditions form that had been signed by Bender.

The agreement between Best Buy and contractor specifies contractor as the “general

contractor” and provides that contractor is responsible for a “warranty of both materials and

workmanship, and a guarantee of remediation.” Additionally, the agreement states “[contractor]

shall be solely responsible for the conduct of all such Subcontractors and any Service Providers

actually performing the [installation] Services . . . .” Furthermore, contractor provides “inbound

and outbound telephone customer support . . . for the Services provided to Best Buy and its

customers . . . .” The agreement requires contractor to send a properly licensed subcontractor to

the customer’s home to install the appliance and make the connection with the gas line. The

subcontractor brings a “control form” with Best Buy’s logo to the job site, which the customer

and installer initial after the work is completed. Best Buy’s “installations are for direct

replacement only . . . [s]o if you don’t have an existing . . . appliance already in your home, [Best

Buy] [won’t] offer or sell the service.” Moreover, if a job requires more than a connection or

additional work is discovered after the sale, contractor’s subcontractor has permission to enter

into a separate contract with the customer to provide such services.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Smit v. SHIPPERS'CHOICE OF VIRGINIA, INC.
674 S.E.2d 842 (Supreme Court of Virginia, 2009)
Wright v. Com.
655 S.E.2d 7 (Supreme Court of Virginia, 2008)
Cooper Industries, Inc. v. Melendez
537 S.E.2d 580 (Supreme Court of Virginia, 2000)
National College of Business & Technology, Inc. v. Davenport
705 S.E.2d 519 (Court of Appeals of Virginia, 2011)
Mazloumi v. Department of Environmental Quality
684 S.E.2d 852 (Court of Appeals of Virginia, 2009)
Shippers' Choice of Virginia, Inc. v. Smith
660 S.E.2d 695 (Court of Appeals of Virginia, 2008)
Evelyn v. Commonwealth
621 S.E.2d 130 (Court of Appeals of Virginia, 2005)
Mattaponi Indian Tribe v. Commonwealth
601 S.E.2d 667 (Court of Appeals of Virginia, 2004)
Volkswagen of America, Inc. v. Quillian
569 S.E.2d 744 (Court of Appeals of Virginia, 2002)
Sentara Norfolk General Hospital v. State Health Commissioner
516 S.E.2d 690 (Court of Appeals of Virginia, 1999)
John M. Surprenant v. Board for Contractors
516 S.E.2d 220 (Court of Appeals of Virginia, 1999)
Bacigalupo v. Fleming
102 S.E.2d 321 (Supreme Court of Virginia, 1958)
J. W. Woolard Mechanical & Plumbing, Inc. v. Jones Development Corp.
367 S.E.2d 501 (Supreme Court of Virginia, 1988)
Sellers v. Bles
92 S.E.2d 486 (Supreme Court of Virginia, 1956)
Virginia Alcoholic Beverage Control Commission v. York Street Inn, Inc.
257 S.E.2d 851 (Supreme Court of Virginia, 1979)
Lee v. Lee
404 S.E.2d 736 (Court of Appeals of Virginia, 1991)
Pence Holdings, Inc. v. Auto Center, Inc.
454 S.E.2d 732 (Court of Appeals of Virginia, 1995)
Johnston-Willis, Ltd. v. Kenley
369 S.E.2d 1 (Court of Appeals of Virginia, 1988)
Jordan v. Sandwell, Inc.
189 F. Supp. 2d 406 (W.D. Virginia, 2002)

Cite This Page — Counsel Stack

Bluebook (online)
Department of Professional and Occupational Regulation, etc. v. Best Buy Stores, LP, Counsel Stack Legal Research, https://law.counselstack.com/opinion/department-of-professional-and-occupational-regula-vactapp-2014.