Kutscheid v. Emerald Square Properties, Inc.

770 N.W.2d 529, 2009 Minn. App. LEXIS 149, 2009 WL 2432331
CourtCourt of Appeals of Minnesota
DecidedAugust 11, 2009
DocketA08-1620
StatusPublished
Cited by1 cases

This text of 770 N.W.2d 529 (Kutscheid v. Emerald Square Properties, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kutscheid v. Emerald Square Properties, Inc., 770 N.W.2d 529, 2009 Minn. App. LEXIS 149, 2009 WL 2432331 (Mich. Ct. App. 2009).

Opinion

OPINION

WILLIS, Judge. *

Appellant brought this rent-escrow action against respondents, alleging that respondents violated Minn.Stat. § 504B.215, subd. 2a(l), which requires notice to prospective tenants of the total utility cost for a single-metered residential apartment building for each month of the most recent calendar year when the landlord bills for utility charges separate from the rent. In this appeal from a judgment for respondents, appellant argues that respondents did not provide her with the information required by Minn.Stat. § 504B.215, subd. 2a, before she leased the property, and, thus, she is entitled to damages and attorney fees under Minn.Stat. § 504B.221(a). Because respondents did not provide appellant with the statutorily required information before she leased the property, we reverse and remand.

FACTS

In the fall of 2007, appellant Mackenzie Bailey Kutscheid considered leasing an apartment in a 21-unit apartment building in Minneapolis. Respondent Emerald Square Properties, Inc. is the property owner, and respondent JAS Apartments, Inc. is the management company for the building. The apartment building has single-utility meters measuring the building-wide usage and consumption of gas for heating, gas for cooking and hot water, and water/sewer service.

Kutscheid and her mother spoke to Martin Kretzman, respondents’ leasing agent, about shared-meter utility billing and the cost of utilities. Kutscheid testified that Kretzman said that Kutscheid’s utilities cost would be about $60 to $80 per month during the winter; Kretzman testified that he told Kutscheid that $60 to $80 was the annual monthly average utilities cost.

On November 15, 2007, Kutscheid and respondents entered into a lease agreement and utilities addendum. The utilities addendum provides that the building’s gas bill will be allocated among apartment units based on the percentage that the square footage of each apartment represents of all rentable square footage of the building and that the water and sewer bill will be allocated equally among the apartment units in the building. The addendum also states: “Upon Tenant’s request, Landlord will provide a copy of the actual utility bill for the property. In addition, Landlord will make available an accounting of the utility bill prorations.”

Kutscheid paid the following amounts for her share of the apartment building’s gas and sewer and water bills during the winter of 2007-08: $40.33 for November *531 15-30, 2007; $168.18 for December 2007; $171.39 for January 2008; and $170.67 for February 2008. In February 2008, Kut-scheid contacted Angela Conte, the asset manager for JAS Apartments, to ask about what Kutscheid perceived to be the high cost of utilities. Kutscheid testified that Conte responded that it had been a very cold winter. The next month, Kutscheid contacted Conte again and asked to see the billing records for the gas and water utilities. Conte provided Kutscheid with the bills and documents showing the cost allocation to each unit in the building for 2006, 2007, and for the first three months of 2008.

During all of 2006, the average monthly allocation of the gas and water bills to units in the building was $77.05 and to Kutscheid’s unit was $81.16. During 2007, the average monthly allocation to units was $76.33 and to Kutscheid’s unit was $80.27.

Kutscheid brought this rent-escrow action against respondents, alleging that they violated Minn.Stat. § 504B.215, subd. 2a(l), and also claiming that respondents misrepresented the amount of utility costs during winter months. The case was tried to a district-court referee, who found that respondents complied with the requirements of Minn.Stat. § 504B.215, subd. 2a. On Kutscheid’s request for review, the district court affirmed the referee’s decision. This appeal followed.

ISSUES

I. Did the district court err by concluding that respondents complied with Minn. Stat. § 504B.215, subd. 2a(l)?

II. Is Kutscheid entitled to damages under Minn.Stat. § 504B.221(a)?

ANALYSIS

I.

The construction of a statute is a legal issue, which this court reviews de novo. Educ. Minn.-Chisholm v. Indep. Sch. Dist. No. 695, 662 N.W.2d 139, 143 (Minn.2003). When interpreting a statute, an appellate court first determines “whether the statute’s language, on its face, is clear or ambiguous. A statute is only ambiguous when the language therein is subject to more than one reasonable interpretation.” Am. Family Ins. Group v. Schroedl, 616 N.W.2d 273, 277 (Minn.2000) (quotation and citation omitted). The object of statutory interpretation is to ascertain and effectuate the legislature’s intent. Minn.Stat. § 645.16 (2008). If that intent is clear from plain and unambiguous language, “statutory construction is neither necessary nor permitted,” and an appellate court will apply the plain meaning of the statute. Am. Tower, L.P. v. City of Grant, 636 N.W.2d 309, 312 (Minn.2001).

Minn.Stat. § 504B.215, subd. 2a, provides:

If the landlord of a single-metered residential building bills for utility charges separate from the rent, the following conditions apply:
(1) prospective tenants must be provided notice of the total utility cost for the building for each month of the most recent calendar year; and
(2) an equitable method of apportionment and the frequency of billing by the landlord must be predetermined and put in writing for all leases.
The lease must contain a provision that, upon a tenant’s request, a landlord must provide a copy of the actual utility bill for the building along with each apportioned utility bill. Upon a tenant’s request, a landlord must also provide past copies of actual utility bills for any period of the tenancy for .which the tenant received an apportioned utility bill.
*532 Past copies of utility bills must be provided for the preceding two years or from the time the current landlord acquired the building, whichever is most recent.

Kutscheid challenges the district court’s finding that Minn.Stat. § 504B.215, subd. 2a(l), “does not state when the ‘notice’ has to be given.” The statute requires that notice be given to “prospective tenants.” Id. Applying the plain meaning of the term prospective, the statute requires that notice be given before a person becomes a tenant. See The American Heritage Dictionary of the English Language 1408 (4th ed.2000) (defining “prospective” as “likely to become or be”). Accordingly, the information that Conte provided to Kutscheid after Kutscheid became a tenant is not relevant in determining whether respondents satisfied the statutory notice requirement.

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Cite This Page — Counsel Stack

Bluebook (online)
770 N.W.2d 529, 2009 Minn. App. LEXIS 149, 2009 WL 2432331, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kutscheid-v-emerald-square-properties-inc-minnctapp-2009.