150 East 47th Street Corp. v. Porter

156 F.2d 541, 1946 U.S. App. LEXIS 2603
CourtEmergency Court of Appeals
DecidedJuly 8, 1946
DocketNo. 349
StatusPublished
Cited by8 cases

This text of 156 F.2d 541 (150 East 47th Street Corp. v. Porter) is published on Counsel Stack Legal Research, covering Emergency Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
150 East 47th Street Corp. v. Porter, 156 F.2d 541, 1946 U.S. App. LEXIS 2603 (eca 1946).

Opinion

MARIS, Chief Judge.

The complaint in this case was filed by the complainant on June 19, 1946, under Section 204(e) of the Emergency Price Control Act of 1942, as amended, with leave of the Municipal Court of the City of New York. The complainant asks this court to set aside and declare invalid ab initio an order of the Area Rent Director of the New York City Defense-Rental Area issued on March 27, 1946, which decreased the maximum rent of complainant’s apartment 3C at 150 East 47th Street, New York City, from $85.00 per month to $67.50 per month, effective retroactively from October 1, 1945. The complaint states that the complainant collected from the tenant of the apartment an overage as computed under the order amounting to $105.00 and made no refund thereof. It further states that the tenant, Raine C. Burnett, on May 9, 1946, brought an action against the com[542]*542plainant in the Municipal Court of the City of New York to recover the excess rent thus paid and that on June 11, 1946, a judgment was entered in that action against the complainant in the sum of $118.30. Since under section 204(d) 1 of the act the Municipal Court has no power to consider the complainant’s defense of invalidity of the Area Rent Director’s order the complainant, pursuant to Section 204(e),2 sought and on June 12, 1946, obtained from that court leave to file the present complaint in [543]*543this court and a stay of proceedings during the pendency of the proceeding in, this court.

Alleging that the complainant had failed to annex to the complaint a true copy of its application to the Municipal Court for leave to file the complaint, as required by Rule 11(c) of this court, 50 U.S.C.A.Appendix following section 924, the Price Administrator on June 27, 1946, filed a motion to dismiss the complaint. On June 29, 1946 the complainant filed a motion for leave to amend the complaint by annexing thereto a true copy of the order of the Municipal Court to show cause and the annexed affidavit which constituted the complainant’s application for leave to file the complaint and asked that the motion to dismiss the complaint be denied. On July 2, 1946 the Administrator filed an answer to the complainant’s motion stating that he did not object to the amendment of the complaint and consented to the denial of his motion to dismiss if the amendment was permitted. Accordingly the motion for leave to amend the complaint ought to be granted and the motion to dismiss the complaint denied if it be that this court continues in existence after June 30, 1946, the termination date of the Emergency Price Control Act of 1942 as amended, with judicial power to hear and determine the present complaint. We therefore proceed to consider that question.

Section 1(b) of the act, which provides for its termination, is as follows: “(b) The provisions of this Act, and all regulations, orders, price schedules, and requirements thereunder, shall terminate on June 30, 1946, or upon the date of a proclamation by the President, or upon the date specified in a concurrent resolution by the two Houses of the Congress, declaring that the further continuance of the authority granted by this Act is not necessary in the interest of the national defense and security, whichever date is the earlier; except that as to offenses committed, or rights or liabilities incurred, prior to such termination date, the provisions of this Act and such regulations, orders, price schedules, and requirements shall be treated as still remaining in force for the purpose of sustaining any proper suit, action, or prosecution with respect to any such right, liability, or offense.”

It will at once be observed that it is expressly provided that the provisions of the act and all regulations, orders, price schedules and requirements thereunder, shall be treated as remaining in force after June 30, 1946, for the purpose of sustaining any proper suit, action, or prosecution with respect to offenses committed, or rights or liabilities incurred, prior to that date. Among the provisions of the act are those paragraphs of section 204 which create this court, provide for its organization and operation, and confer jurisdiction upon it to hear and determine complaints objecting to regulations and orders issued under section 2 of the act.3 Are these provisions to be treated as still remaining in force for the purpose of enabling this court to hear and determine complaints of the character of the one now before us? The answer to this question obviously depends upon whether the complainant’s suit in this court is, within the meaning of section 1(h), a proper suit with respect to an offense committed or a right or liability incurred prior to June 30, 1946.

The facts of the case, already stated, make the answer clear. The complainant incurred a liability of $105.00 under the act prior to June 30, 1946. That liability was on, June 11, 1946 fixed by the judgment in the Municipal Court of the City of New York. Section 204(d) of the act prevented the complainant from setting up the invalidity of the order under which the liability arose as a defense in the suit in the Municipal Court. Section 204(e), however expressly authorized the complainant, with leave of the Municipal Court, to litigate the question of validity in this court, as by the present suit it is doing, and to secure a stay of proceedings, and, in case [544]*544the order should be determined by this court to be invalid, expressly provided that any judgment against it based upon violation of the invalid order should be vacated.4 As we pointed out in Conklin Pen Co. v. Bowles, 152 F.2d 764, 766 (1946), a case brought in this court under section 204(e) is in reality ancillary to the litigation against the complainant in the enforcement court which has granted leave to bring it. Its primary purpose is to enable the complainant to establish the invalidity of the regulation or order involved in that litigation as a bar to the claim asserted in the •enforcement court. Except for the prohibition of section 204(d) the defense could and would have been established in the enforcement court. We think it beyond doubt that the suit now before us is a proper suit with respect to a liability incurred under the act prior to its termination date, within the meaning of section 1(b). Since it is obvious that the suit cannot be sustained unless this court continues in existence with power and facilities to hear and determine it', the conclusion is inescapable that the provisions of section 204 of the act remain in force after June 30, 1946 to the extent necessary for that purpose.

We take note of the fact that there are now pending in this court some 12 other complaints filed under section 204(e) of the act. These exhibit varying fact patterns but each of them is basically similar to the one now before us in that it is ancillary to a proceeding pending in some enforcement court with respect to an offense committed or a right or liability incurred under the act prior to June 30, 1946. We also note that among the complaints filed under section 204(a) and now pending in the court are a number which are likewise similar in this respect to the present complaint since they disclose the existence of a criminal prosecution or suit for treble damages against the complainant pending in another court based upon the alleged violation of the regulation or order which the complainant seeks to have this court declare invalid.

We held in Montomery Ward & Co. v.

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Bluebook (online)
156 F.2d 541, 1946 U.S. App. LEXIS 2603, Counsel Stack Legal Research, https://law.counselstack.com/opinion/150-east-47th-street-corp-v-porter-eca-1946.