Skyline Village Park Ass'n v. Skyline Village L.P.

786 N.W.2d 304, 2010 Minn. App. LEXIS 105, 2010 WL 2813568
CourtCourt of Appeals of Minnesota
DecidedJuly 20, 2010
DocketA10-167
StatusPublished
Cited by5 cases

This text of 786 N.W.2d 304 (Skyline Village Park Ass'n v. Skyline Village L.P.) 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
Skyline Village Park Ass'n v. Skyline Village L.P., 786 N.W.2d 304, 2010 Minn. App. LEXIS 105, 2010 WL 2813568 (Mich. Ct. App. 2010).

Opinion

OPINION

LARKIN, Judge.

Appellant challenges the district court’s declaratory judgment in favor of respondents, arguing that the district court’s ruling is based on an erroneous interpretation of Minnesota Statutes, chapter 327C. Because the district court correctly determined that section 327C.02, subdivision 2, does not impose a reasonableness requirement on increases in manufactured-home-park-lot rental rates and that section 327C.05, subdivision 1, which prohibits a park owner from engaging in an unreasonable course of conduct, does not apply to increases in manufactured-home-park-lot rental rates, we affirm.

FACTS

The facts in this case are undisputed. Respondent Skyline Village is a manufae-tured-home community located in Inver Grove Heights. Appellant Skyline Village Park Association is a resident association consisting of 268 of the 351 occupied households in the Skyline community. The dispute in this matter arises from a $25 per month rent increase imposed by Skyline Village beginning March 1, 2008.

Appellant initiated a lawsuit claiming, in part, that the proposed increase is unreasonable and therefore unenforceable under *306 Minn.Stat. § 327C.02 (2008). Appellant argued that the increase is unreasonable because (1) it set the rent at a level substantially higher than that of other comparable parks in the region, (2) it is part of a 23%-24% rent increase over the course of four years, and (3) requested repairs and maintenance had not been completed in the park. Appellant sought declaratory and injunctive relief.

In August 2009, the parties moved for a declaratory judgment establishing whether manufactured-home-park-lot rent increases are subject to a reasonableness requirement under Minnesota statutes, and if so, how reasonableness is to be evaluated. The district court determined that any requirement for reasonableness set forth in Minn.Stat. § 327C.02 does not apply to increases in the rental rate for a manufae-tured-home-park lot and in the alternative, a determination of whether a rent increase is reasonable is limited to a comparison of market-comparable rents or rent increases. The district court further declared that (1) a determination of whether a manufactured-home-park-lot rent increase is reasonable may not include consideration of the factors set out in MinmStat. § 327C.01, subdivision 8 (2008); (2) a determination of whether a manufactured-home-park-lot rent increase is enforceable may not include consideration of whether it is substantial pursuant to Minn.Stat. § 327C.01, subd. 11 (2008); and (3) the prohibition under Minn.Stat. § 327C.05, subd. 1, against a manufactured-home-park owner’s course of conduct that is unreasonable does not apply to rent increases. The district court entered a final judgment in respondents’ favor, and this appeal followed.

ISSUES

I. Did the district court err by concluding that Minn.Stat. § 327C.02, subd. 2, does not impose a reasonableness requirement on manufactured-home-park-lot rent increases?

II. Did the district court err by concluding that the prohibition under Minn. Stat. § 327C.05, subd. 1, against a manufaetured-home-park owner’s course of conduct that is unreasonable does not apply to increases in lot rent?

ANALYSIS

I.

In this appeal, we must determine whether Minnesota statutes impose a reasonableness requirement on manufactured-home-park-lot rent increases. Our focus is on section 327C.02, subdivision 2, which provides, in relevant part, that “[a] rule adopted or amended after the resident initially enters into a rental agreement may be enforced against that resident only if the new or amended rule is reasonable and is not a substantial modification of the original agreement.” MinmStat. § 327C.02, subd. 2. It further states: “A reasonable rent increase made in compliance with section 327C.06 is not a substantial modification of the rental agreement and is not considered to be a rule for purposes of section 327C.01, subdivision 8.” Id. Appellant argues that we should interpret section 327C.02, subdivision 2, as imposing a reasonableness requirement on rent increases. Appellant contends that under section 327C.02, subdivision 2, an unreasonable rent increase is a rule change that must comply with the statutory requirements governing rule changes.

“On appeal from a declaratory judgment, we ... review the [district] court’s determination of questions of law de novo.” Rice Lake Contracting Corp. v. Rust Env’t & Infrastructure, Inc., 549 N.W.2d 96, 98-99 (Minn.App.1996), review *307 denied, (Minn. Aug. 20, 1996). “Statutory-construction is ... a legal issue reviewed de novo.” Lee v. Fresenius Med. Care, Inc., 741 N.W.2d 117, 122 (Minn.2007). When interpreting a statute, our object is to “ascertain and effectuate the intention of the legislature.” Minn.Stat. § 645.16 (2008). “[An appellate court] first look[s] to see whether the statute’s language, on its face, is clear or ambiguous. A statute is ambiguous only 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 citations omitted). If the legislature’s intent is clearly discernible from a statute’s unambiguous language, appellate courts interpret the language according to its plain meaning, without resorting to other principles of statutory construction. State v. Anderson, 683 N.W.2d 818, 821 (Minn.2004).

The portion of section 327C.02, subdivision 2, at issue here provides: “A reasonable rent increase made in compliance with section 327C.06 [governing rent increases] is not a substantial modification of the rental agreement and is not considered to be a rule for purposes of section 327C.01, subdivision 8 [defining a reasonable rule].” Minn.Stat. § 327C.02, subd. 2. Appellant argues that this statement suggests that an unreasonable rent increase is a substantial modification of the rental agreement and is considered to be a rule for purposes of section 327C.01, subdivision 8. Respondents counter that the word “reasonable” means nothing more than “made in compliance with section 327.06.” Because both interpretations are reasonable, we conclude that the statutory language is ambiguous and that it is appropriate to apply principles of statutory construction.

“A statute should be interpreted, whenever possible, to give effect to all of its provisions; ‘no word, phrase, or sentence should be deemed superfluous, void, or insignificant.’ ” Am. Family Ins. Group, 616 N.W.2d at 277 (quoting Amaral v. St. Cloud Hosp., 598 N.W.2d 379, 384 (Minn.1999)) (other citation omitted).

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Bluebook (online)
786 N.W.2d 304, 2010 Minn. App. LEXIS 105, 2010 WL 2813568, Counsel Stack Legal Research, https://law.counselstack.com/opinion/skyline-village-park-assn-v-skyline-village-lp-minnctapp-2010.