Holiday Resort Community Assoc. v. Echo Lake Assoc. LLC.

135 P.3d 499
CourtCourt of Appeals of Washington
DecidedAugust 15, 2006
Docket55253-8-I
StatusPublished
Cited by22 cases

This text of 135 P.3d 499 (Holiday Resort Community Assoc. v. Echo Lake Assoc. LLC.) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Holiday Resort Community Assoc. v. Echo Lake Assoc. LLC., 135 P.3d 499 (Wash. Ct. App. 2006).

Opinion

135 P.3d 499 (2006)

HOLIDAY RESORT COMMUNITY ASSOCIATION, a Washington nonprofit corporation, Egla Lopez, Linda McFarland, William Darby, on behalf of themselves and all others similarly situated, Appellants,
v.
ECHO LAKE ASSOCIATES, LLC, a Washington limited liability company, Harley D. O'Neil, Jr., individually, and as agent of Echo Lake Associates, LLC, Manufactured Housing Communities of Washington, a Washington nonprofit corporation, Respondents.

No. 55253-8-I.

Court of Appeals of Washington, Division 1.

May 22, 2006.
As Amended on Denial of Reconsideration August 15, 2006.

*501 Roger Duane Mellem, Ryan Swanson & Cleveland PLLC, Seattle, WA, for Respondent, Echo Lake.

Walter Hartvig Olsen, Jr., Olsen Law Firm PLLC, Kent, WA, Sharon Louise Nelson, Office of the Attorney General, Seattle, WA, for Respondent, Manufacturing Housing.

Ishbel M. Dickens, Columbia Legal Services, Seattle, WA, for Appellants.

SCHINDLER, A.C.J.

¶ 1 Under the Mobile Home Landlord Tenant Act (MHLTA), chapter 59.20 RCW, a tenant has the right to a one-year rental term which is then automatically renewed unless the tenant expressly waives that right in writing. According to the language in the 1997 "Manufactured Home Lot One-Year Rental Agreement" (1997 Rental Agreement) drafted by Manufactured Housing Communities of Washington (MHCW) for its mobile home park owner and manager members, unless a tenant requests renewal of the one-year rental term prior to its expiration, the tenant agrees to convert to a month-to-month tenancy, waives the right to automatically renew for a one-year rental term, and forfeits the statutory right to revert to a year-long term in the future.

¶ 2 A tenant association and several individual mobile home owners (collectively "the tenants") allege the 1997 Rental Agreement is contrary to the MHLTA and violates the Consumer Protection Act (CPA). Below, MHCW argued that because it has no contractual or statutory relationship with the tenants, the tenants do not have standing to bring a declaratory judgment action or a CPA claim. MHCW also argued that as a matter of law, there was no justiciable controversy, the 1997 Rental Agreement did not violate the MHLTA, and the tenants could not establish the elements of a CPA claim. The trial court agreed with MHCW, dismissed the tenants' lawsuit and awarded MHCW attorney fees under the MHLTA. The court ruled the tenants did not have standing to sue MHCW and the 1997 Rental Agreement does not violate the MHLTA or the CPA. On appeal, the tenants contend they have standing to bring a CPA claim against MHCW. The tenants also challenge the trial court's decision that the 1997 Rental Agreement does not contravene the MHLTA, that the tenants cannot establish a CPA claim, and MHCW was entitled to an award *502 of attorney fees under the MHLTA.[1] We conclude the tenants have standing to sue MHCW. We also conclude the 1997 Rental Agreement violates the MHLTA and material issues of fact preclude dismissal of the tenants' CPA claim against MHCW. We reverse the trial court's decision to dismiss the CPA claim and remand.[2]

FACTS

¶ 3 Echo Lake Associates (Echo Lake) is the most recent owner of the Holiday Resort Mobile Home Park (Holiday Resort). Holiday Resort is a 73-lot mobile home park located in Shoreline, King County. The Holiday Resort Community Association is a nonprofit corporation representing tenants who own mobile homes and rent lots at Holiday Resort. Many of the tenants are long-term residents of Holiday Resort. A majority of the tenants routinely renewed their one-year rental agreements at Holiday Resort.

¶ 4 The Manufactured Housing Communities of Washington (MHCW) is a nonprofit corporation with its principal place of business in Olympia. MHCW represents over five hundred mobile home park owners and managers in the State of Washington.[3] As part of the services it provides, MHCW drafts and distributes forms to its members including a manufactured home lot one-year rental agreement.

¶ 5 It appears from the limited record in this case, that over the years there were different versions of MHCW's manufactured home lot one-year rental agreement that were used by the Holiday Resort owners. Up until 1997, the rental agreement drafted by MHCW included a provision automatically renewing the tenant's original one-year rental term for an additional year unless the tenant specifically asked for a different term and signed a written waiver. For example, when Grace Hundtoft moved to Holiday Resort in 1990, she signed the "MOBILE HOME LOT ONE-YEAR RENTAL AGREEMENT" "PREPARED FOR USE OF PAID MEMBERS OF WASHINGTON MOBILE HOME PARK OWNERS ASSOCIATION BY LEGAL COUNSEL-1989." The 1989 Rental Agreement expressly includes a provision stating that the original one-year term is automatically renewed. "[S]ubject to the provisions of RCW 59.20.090, at the conclusion of the twelve (12) month term of this Rental Agreement, this Rental Agreement and tenancy automatically renew as provided by law."[4]

¶ 6 By contrast, the "MANUFACTURED HOME LOT ONE-YEAR RENTAL AGREEMENT" "PREPARED FOR USE OF PAID MEMBERS OF WASHINGTON MOBILE HOME PARK OWNERS ASSOCIATION BY LEGAL COUNSEL—1997" (1997 Rental Agreement) states that the tenant waives the right to renew the original one-year term and agrees to convert to a month-to-month tenancy unless the tenant specifically and expressly requests otherwise prior to expiration of the original agreement.[5]

¶ 7 Relying on the language in the 1997 Rental Agreement, Echo Lake raised the rent at Holiday Resort in September 2002, in April 2003, and again eight months later, in December 2003. In January 2004, the Holiday Resort Community Association, together with individual tenants Egla Lopez, Linda McFarland, and William Darby (collectively, "the tenants") sued Echo Lake and MHCW. The tenants claimed Echo Lake was able to impermissibly raise the rent multiple times under the 1997 Rental Agreement, and alleged the 1997 Rental Agreement violates the *503 MHLTA and the CPA.[6] The tenants requested a declaratory judgment, a preliminary and permanent injunction, and damages.[7]

¶ 8 In May 2004, the tenants settled their claims against Echo Lake, leaving MHCW as the only remaining defendant. Before engaging in discovery, MHCW filed a motion to dismiss under CR 12(b)(6) and a motion for summary judgment under CR 56. MHCW argued the tenants did not have standing to bring a CPA or declaratory judgment action. MHCW also argued that as a matter of law the 1997 Rental Agreement did not violate the MHLTA and it was not an unfair business practice or the cause of the tenants' alleged injuries under the CPA.

¶ 9 The trial court granted MHCW's CR 12(b)(6) motion to dismiss. The court ruled the tenants did not have standing to sue MHCW and there was no justiciable controversy. The trial court also dismissed the tenants' lawsuit against MHCW under CR 56. The court ruled the 1997 Rental Agreement did not violate the MHLTA and there was no connection between the alleged CPA violation and the tenants' injuries.[8] The court granted MHCW's request for attorney fees under the MHLTA, RCW 59.20.110, and awarded MHCW $15,327. The tenants appeal and challenge the trial court's decision to dismiss the CPA claim and its decision to award attorney fees to MHCW under the MHLTA.

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Bluebook (online)
135 P.3d 499, Counsel Stack Legal Research, https://law.counselstack.com/opinion/holiday-resort-community-assoc-v-echo-lake-assoc-llc-washctapp-2006.