Bachman v. Peñagarícano

87 P.R. 37
Procedural entryThis page is a short order in Bachman v. Peñagarícano. Read the opinion of the Court — 87 P.R. Dec. 41
Supreme Court of Puerto Rico·Decided December 28, 1962·No. No. 95·Published

Opinion

Mr. Justice Pérez Pimentel

delivered the opinion of the Court.

Landlord Alberto Bachman charged his tenant Manuel Martino Ruidiaz an overcharge of $25 per month from the year 1955 until January 1960. On September 23, 1960, the tenant, through his attorney, sent the landlord a request of reimbursement for the sum of $1,325 by way of fifty-three months of overcharge at the rate of $25 per month. Copy of the aforesaid request was sent to the Economic Stabilization Administration. Landlord Bachman offered to pay the tenant $100 as reimbursement of the overcharge collected during the year prior to the date in which an action for treble damages could be filed. This offer was rejected by the tenant and the landlord deposited the sum of $100 in the San Juan Part of the District Court on October 13, 1960.

On October 4, 1960 the Administration had notified the parties that it would hold an administrative hearing on the 18th of the same month and year, respecting the tenant’s claim. At such hearing the landlord admitted that he had charged $25 per month in excess of the legal rate during the period covering the tenant’s claim. However, he alleged that the Administrator lacked jurisdiction to enter an order [40]*40of reimbursement (1) because the law contemplated the issuance of a single request of reimbursement in each case, be it by the tenant or by the Administrator, and the tenant had already exercised his right in this case, (2) because the matter had been submitted to the District Court in the case of the deposit which is still pending, and (3) because at the time of issuing the second requirement, every possible action for treble damages on the part of the tenant had already prescribed.

On January 10, 1961 the Administrator sent a request for reimbursement amounting to $1,325. Feeling aggrieved the landlord filed an appeal for review in the Superior Court, San Juan Part, and on August 28, 1961 the latter rendered the following judgment:

“Since appellant admits that he charged the intervener the overcharge the reimbursement of which was required by the appellee Administrator, no practical end would be accomplished in determining whether or not the Administrator had jurisdiction to enter the order of reimbursement after the intervener had made to appellant the same requirement, since such admission would accomplish identical purpose within the judicial action that might be filed for treble damages or single reimbursement of the overcharge, as would result from the affirmance of said order: its inexpugnability to a collateral attack with a view to relitigate the admitted fact.”

We issued a writ of certiorari to review the aforesaid judgment in order to clarify the contention made by the landlord on the issuance of two requirements for reimbursement, one made by the tenant and the other made by the Administrator.

“The question to be decided—the landlord states in his petition for certiorari—which was circumvented by the trial court, is whether once a tenant sets the machinery of his cause of action in motion, requiring reimbursement from his landlord, as provided by § 8(a) of the Reasonable Rents Act, and receiving from said landlord the offer of payment [41]*41which the latter deems legal, which is refused by the tenant, thereby causing a judicial deposit, he may subsequently, and together with the Economic Stabilization Administrator, put aside the aforesaid requirement and subsequent actions of the landlord as if they had never occurred and insist and obtain that the Administrator issue subsequently a second order of reimbursement for the same amount.”

The landlord is wrong. In Peñagarícano v. Superior Ct.; Nadal, Int., 81 P.R.R. 849, we stated the following at pp. 865-66:

“Section 5(d) authorizes the Administrator to make . . . ‘such rules, . . . orders and determinations as he may deem necessary or proper,’ in order to carry out the purpose of the Act. Apart from the fact of whether a case reaches the stage where it is necessary to resort to judicial action, it is unquestionable that in those cases where pursuant to the Act reimbursement lies, the Administrator not only has power but is compelled to enter an order of reimbursement covering any rent collected by a landlord in excess of the permissible amount, as a means of enforcing the purposes of the Act contained in paragraphs (a), (6) and (c) of § 8 concerning administrative restitution or reimbursement, without which previous step judicial action cannot be instituted. The specific amount to be obtained by way of treble damages does not lie within the Administrator’s sphere and it is for the courts to decide it in the light of the statutory provision. Undoubtedly the courts cannot grant triple reimbursement of an overcharge paid prior to the year immediately preceding the date of the filing of the complaint, which is the correct starting point for counting said year and not the date on which the Administrator enters an order for reimbursement. As a question of fact the Administrator could not determine at the time of entering an order for reimbursement what overcharges would have prescribed in case of using judicial action, without knowing the time when such action would be filed. In the light of the foregoing the determination of the lower court modifying the orders of reimbursement so as to limit the restitution to the overcharges collected within the year immediately prior to the date of said orders was not correct according to law.”

[42]*42It is now convenient to clarify, for the purpose of avoiding an erroneous interpretation of the case of Peñagarícano, that when we stated therein that the issuance of an order for reimbursement by the Administrator was a previous indispensable step to resort to judicial action, we were limiting the doctrine to the specific facts of said case, without it being implied in any way that in all the cases in which a rent is charged in excess of the legal rate, it is indispensable for the tenant to obtain from the Administrator an order of reimbursement before resorting to the judicial claim of the overcharge. There are situations where the issuance of said order of reimbursement is indispensable, as, for example, when the rent automatically adjusts to October 1, 1942, or when the Administrator enters a provisional order increasing or fixing the maximum rent until the case is definitively decided. Section 6 of the Act. In Vargas v. Sánchez, 79 P.R.R. 754, we stated that the statute grants to the Administrator ample power to enter refund orders in cases where the premises have been previously registered as well as in cases where the rent is reduced, including reimbursement to the tenant and, besides, the Administrator may act motu propHo or at the tenant’s request. In the case we had also stated that an order of refund of the Administrator is not a prerequisite to an action for treble damages. It should be remembered that in the case of Vargas the tenant claimed treble damages and also the single reimbursement charged in excess by the landlord. We decided that the only cause of action which the tenant had, pursuant to § 205 of the Federal Rents Act of 1947 was that of treble damages with the limitation provision established by the statute itself, and that therefore his claim for single reimbursement did not lie. Whether or not this was so under our local rent Act, we left the question open in the Peñagarícano case, where we stated at p.

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Bachman v. Peñagarícano, 87 P.R. 37 (prsupreme 1962).

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