McFoy v. Amerigas, Inc.

295 S.E.2d 16, 170 W. Va. 526, 1982 W. Va. LEXIS 824
CourtWest Virginia Supreme Court
DecidedJuly 1, 1982
Docket15314
StatusPublished
Cited by31 cases

This text of 295 S.E.2d 16 (McFoy v. Amerigas, Inc.) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McFoy v. Amerigas, Inc., 295 S.E.2d 16, 170 W. Va. 526, 1982 W. Va. LEXIS 824 (W. Va. 1982).

Opinion

NEELY, Justice:

This is an appeal from a partial summary judgment entered by the Circuit Court of Monongalia County against the defendant below, Amerigas, Inc. and in favor of the *528 plaintiffs, John and Martha McFoy and others, who sue both individually and as representatives of a class of all others similarly situated. The plaintiffs alleged that certain billing and collection practices of the defendant, Amerigas, violated W. Va. Code, 46A-6-104 [1974]. The circuit court agreed with the plaintiffs and entered summary judgment against Amerigas on the underlying liability. The court then ordered that further proceedings be conducted to determine the members of the plaintiff class and the amount of damages. The defendant contends on appeal that the circuit court improperly awarded summary judgment against it and that the membership of the class of plaintiffs should have been ascertained before the determination of liability under Rule 23, W Va. R.C.P. We find that the circuit court was wrong in granting summary judgment and we reverse.

The defendant, Amerigas, Inc., is a corporation that sells liquid propane gas in a market area that includes Monongalia County. Amerigas delivers liquid propane gas (LP gas) by truck to tanks owned by Amerigas that are installed on the property of its customers, most of whom live in remote areas where normal gas service is unavailable. Some of the plaintiffs are currently customers of Amerigas and other plaintiffs are former customers of Ameri-gas.

Before a customer may receive service, Amerigas requires that the customer execute an application for service agreement which .sets forth the conditions of the service contract. One provision of the application for service used by Amerigas contains the following language:

5. The schedule of rates and minimum usage requirements applicable hereunder shall be those prevailing at the time of sale within the price territory established by the Company [Amerigas] in which the installation is located....

The purpose of the minimum usage requirement is to compensate Amerigas for use and depreciation of the equipment installed on the customer’s premises. A minimum use charge is billed to the customer if the customer does not consume a minimum amount of LP gas in a calender year. Plaintiff Marilyn H. Byrne executed an application on 7 October 1976. Mr. and Mrs. Byrne then received a bill in March, 1978 for a minimum charge incurred in 1977. According to the Byrnes, the bill charging them for minimum annual use received in March 1978 was the first time they had knowledge of a minimum usage requirement, and the Byrnes did not pay the charge as billed by Amerigas.

Plaintiff Martha McFoy executed an application on 14 December 1971 and plaintiffs John McFoy and Martha McFoy also received a bill for a minimum annual charge in March 1978. According to Mr. and Mrs. McFoy, they also had no knowledge of a minimum usage requirement until the March 1978 minimum usage charge was received. The McFoys paid the bill as submitted by the company.

Another provision of the application for service used by Amerigas contains the following language:

9. Upon default of the terms hereof, the buyer [Plaintiffs] grants the Company [Amerigas] the right to enter on the premises and retake such equipment herein loaned, without notice....

The equipment located on a customer’s property in which the LP gas is stored, and by which LP gas service is provided, is owned by Amerigas. The actual LP gas service is controlled or regulated by a gas regulator, the removal or blockage of which immediately stops the LP gas service.

Plaintiff Martha McFoy stated that she contacted Amerigas in March, 1978 and requested that Amerigas halt further LP gas deliveries to her home. In April 1978 the McFoys were returning to their home and discovered one of Amerigas' employees filling their LP gas tank. Martha McFoy informed the employee that she did not want the LP gas and could not pay for it. Amerigas’ employee removed the regulator from the McFoys’ LP gas tank which immediately stopped any further use of the LP gas contained in that tank. The McFoys have not paid for the LP gas con- *529 tamed in the tank, and the tank remains on the McFoys’ property. The McFoys did not use the LP gas for heating purposes, but employed it only as fuel for their artificial fireplace in the living room.

Upon motions made by the plaintiffs, the circuit court awarded the plaintiffs partial summary judgment. The circuit court held as a matter of law that there was no contractual agreement concerning any minimum usage charge and that billing such a charge was an unfair and deceptive act under W. Va. Code, 46A-6-104 [1974], which provision is part of the West Virginia Consumer Credit and Protection Act. The circuit court ordered Amerigas to return all minimum usage charges collected by it to the entire class of plaintiffs and awarded damages. The circuit court also held as a matter of law that the removal of the McFoys’ regulator was an abusive debt collection practice prohibited by W. Va. Code, 46A-2-124 [1974] and an unfair and deceptive act under W. Va. Code, 46A-6-104 [1974]. The circuit court enjoined Am-erigas from removing regulators and awarded damages.

The circuit court also certified classes of plaintiffs for further proceedings in the action and ordered that notice of the pending action be given to the class of potential plaintiffs by mail and by newspaper publication and that Amerigas pay the mailing expenses.

I

Chapter 46A of the W. Va. Code has not been interpreted extensively by this Court since its passage in 1974. The section under which this lawsuit is brought, namely Code, 46A-6-104 [1974] is among the most broadly drawn provisions contained in the Consumer Credit and Protection Act and it is also among the most ambiguous. That section provides:

Unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce are hereby declared unlawful.

The Legislature, however, has given broad guidelines to the courts concerning the proper interpretation of Code 46A-6-104 [1974] in Code, 46A-6-101 [1974]:

(1) The legislature hereby declares that the purpose of this article is to complement the body of federal law governing unfair competition and unfair, deceptive and fraudulent acts or practices in order to protect the public and foster fair and honest competition. It is the intent of the legislature that, in construing this article, the courts be guided by the interpretation given by the federal courts to the various federal statutes dealing with the same or similar matters. To this end, this article shall be liberally construed so that its beneficial purposes may be served.
(2) It is, however, the further intent of the legislature that this article shall not be construed to prohibit acts or practices which are reasonable in relation to the development and preservation of business or which are not injurious to the public interest,...

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

Related

SER U-Haul Co. v. Hon. Joanna I. Tabit, Judge
West Virginia Supreme Court, 2018
SER Patrick Morrisey, Attorney General v. Copper Beech Townhome Communities
806 S.E.2d 172 (West Virginia Supreme Court, 2017)
GMS Mine Repair and Maintenance v. Jeffrey S. Milkos
798 S.E.2d 833 (West Virginia Supreme Court, 2017)
Liberty Mutual Insurance v. Patrick Morrisey, Attorney General
760 S.E.2d 863 (West Virginia Supreme Court, 2014)
White v. Wyeth
705 S.E.2d 828 (West Virginia Supreme Court, 2010)
Harper v. Jackson Hewitt, Inc.
706 S.E.2d 63 (West Virginia Supreme Court, 2010)
State Ex Rel. McGraw v. Bear, Stearns & Co.
618 S.E.2d 582 (West Virginia Supreme Court, 2005)
West Virginia Ex Rel. McGraw v. Minnesota Mining & Manufacturing Co.
354 F. Supp. 2d 660 (S.D. West Virginia, 2005)
State Ex Rel. Chemtall Inc. v. Madden
607 S.E.2d 772 (West Virginia Supreme Court, 2004)
State ex rel. McCaffery v. Hutchison
585 S.E.2d 52 (West Virginia Supreme Court, 2003)
In Re West Virginia Rezulin Litigation
585 S.E.2d 52 (West Virginia Supreme Court, 2003)

Cite This Page — Counsel Stack

Bluebook (online)
295 S.E.2d 16, 170 W. Va. 526, 1982 W. Va. LEXIS 824, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcfoy-v-amerigas-inc-wva-1982.