Williams v. Virginia Manufactured Housing Board

47 Va. Cir. 426, 1998 Va. Cir. LEXIS 351
CourtRockingham County Circuit Court
DecidedDecember 2, 1998
DocketCase No. (Chancery) 16324
StatusPublished
Cited by1 cases

This text of 47 Va. Cir. 426 (Williams v. Virginia Manufactured Housing Board) is published on Counsel Stack Legal Research, covering Rockingham County Circuit Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Williams v. Virginia Manufactured Housing Board, 47 Va. Cir. 426, 1998 Va. Cir. LEXIS 351 (Va. Super. Ct. 1998).

Opinion

BY JUDGE JOHN J. MCGRATH, JR.

Petitioners have appealed pursuant to Rule 2A:4 of the Rules of the Supreme Court of Virginia an administrative case decision of the Virginia Manufactured Housing Board rendered on April 4,1997. Petitioners claim that the decision of the Virginia Manufactured Housing Board (hereinafter “Board”) should be reversed because it is contrary to the applicable statutory provisions under which the Board operates and it is arbitrary and capricious because it is not based upon substantial evidence of the record.

The facts are rather straightforward and are not in serious dispute between the parties. On or about October 23, 1995, the petitioners, after having examined a number of manufactured homes located at the sales lot of Golden Rule Homes, Inc., located in Mount Crawford, Virginia, put a $100.00 deposit down upon a home, which was part of the Dealer’s inventory. The petitioners obtained their own financing from F. & M. Bank. On or about December 4, 1995, F. & M. Bank forwarded the purchase price of the mobile home of $23,185.00 to Golden Rule Homes, Inc. This was done even though the petitioners had not at that time executed a contract to purchase the mobile home. On December 9, 1995, the petitioners went to the sales offices of Golden Rule Homes, Inc., and executed a contract for the home which was [427]*427located on the lot which had as a purchase price the previously specified amount of $23,185.00.

Shortly after signing the contract of sale on December 9,1995, petitioners discovered that the lot they had bought in the Town of Broadway on which they planned to place file mobile home was not zoned for mobile homes. The petitioners then allegedly engaged in a series of conversations with the Golden Rule personnel asking if they could cancel the contract. According to the testimony of the petitioners at the administrative hearing, they were informed that that could not be done because the contract had been finalized in that the payment in full had been made and that “title had already been transferred.”

The documentary evidence introduced at the hearing indicates that title to the vehicle was not transferred from Golden Rule Mobile Homes, Inc., to the petitioners in December of 1995. The application for a Certificate of Title and Registration was submitted to the Department of Motor Vehicles with die date of purchase listed as April 1,1996. (See Administrative Record at page 53.) The Certificate of Title, which was finally issued to the petitioners by the Department of Motor Vehicles was dated April 24,1996, and the DMV motor vehicle registration which was issued to the petitioners indicated that the purchase date of the vehicle was April 1,1996.

Before the Administrative Agency, the petitioners argued that under the terms of § 36-85.28 of the Code of Virginia, the dealer was entitled by law to retain as damages no more than $500.00 and, moreover, the dealer had failed pursuant to the provisions of § 36-85.28(B) of the Code of Virginia to give a written disclosure to the buyer at the time of the sale alerting the buyer to the maximum amount of damages that could be assessed to the buyer for failure to take delivery of the manufactured home from the dealer.

After an informal fact finding procedure, the Virginia Manufactured Housing Board issued a final order which is interestingly captioned “Consent Order No. 97-1” in which the Board found that Golden Rule Homes, Inc., had violated § 6.2(B) of the Board’s rules in that they had failed to provide a written statement of the limitation of damages that can be claimed by a dealer when a customer does not take delivery of a mobile home. This portion of the decision of the Board has not been appealed from and, in fact, Golden Rule Homes, Inc., acting through its president agreed to the imposition of a $250.00 fine for its violation of this provision of the Board’s rules.

However, in the same decision, the Board concluded that the substantive limitation of damages provision contained in § 36-85.28(A) of the Code did not apply in this case for the reason that the limitation on damages was applicable only in a situation where “a buyer fails to accept delivery of a manufactured home.” The Board’s view was that the petitioners had signed a [428]*428contract for the purchase of the manufactured home and had paid in foil for the home. Their position was that the dealer was ready, willing, and able to make delivery of the home but refrained from doing so because the purchasers did not have a suitable location to accept delivery of the home. The Board, therefore, concluded that the petitioner had taken delivery or constructive delivery by paying the purchase price in full after having had an opportunity to inspect the home on the lot of Golden Rule Homes, Inc.

Petitioners contend that the Board’s interpretation of the statute language is incorrect as a matter of law. The petitioners argue that the payment of the purchase price does not equate to the acceptance of delivery of a manufactured home. Petitioners’ argument is that they never took physical delivery of the home and because part of the contract of sale was a requirement that the dealer deliver the home to a construction site, there could not be delivery without a physical placement of the manufactured home on the petitioners’ property or property designated by the Petitioners.

The contract of sale, which was executed by the petitioners and Golden Rule Homes, lhc., on December 9,1995, contains two pertinent provisions. The first provision provides that “title to the unit purchased will remain in [the dealer] until the agreed upon purchase price is paid in full in cash____at which time title passes to [the purchasers] even though the actual delivery of the unit purchased may be made at a later date.” There is another provision in the contract entitled “Paragraph 17” which provides various rights and obligations of the parties if the dealer has included delivery of the unit in the purchase price or if a quote or charge for delivery to the purchasers’ destination is included in the contract. Although there is nothing on the face of the contract indicating that delivery and set up was included in die purchase price, that fact was conceded by all the parties throughout the administrative hearing. Therefore, the Court will accept that as an uncontested fact in this case.

The Attorney General argues on behalf of the Board that the standards of review of an administrative decision are narrow in scope and the petitioners have a high burden of showing reversible error in the Board’s decision

The Court is mindful of the narrow basis on which it may review an administrative agency’s decision under the applicable provisions of the Virginia Administrative Process Act (Article 4, §§ 9-6.14:15 to 9-6.14:19, Code of Virginia, as amended, 1950). The relatively recent pronouncement of the Court of Appeals in Environmental Defense Fund, Inc. v. Virginia State Water Control Bd., 15 Va. App. 271 (1992), sets out quite succinctly the governing principles of law:

[429]*429II. Standard of Review

The parameters of judicial review of “agency action” are defined in Code § 9-6.14:17 of the Act. This Court has previously instructed that the “issues of law” specified in the statute “fall into two categories: first, whether the agency acted within the scope of [its] authority, and second, whether the decision itself was supported by the evidence.” Johnston-Willis Ltd. v. Kenley, 6 Va. App.

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

Related

Williams v. Virginia Manufactured Housing Board
56 Va. Cir. 481 (Rockingham County Circuit Court, 2001)

Cite This Page — Counsel Stack

Bluebook (online)
47 Va. Cir. 426, 1998 Va. Cir. LEXIS 351, Counsel Stack Legal Research, https://law.counselstack.com/opinion/williams-v-virginia-manufactured-housing-board-vaccrockingham-1998.