Bell v. Fleming

159 F.2d 416, 1947 U.S. App. LEXIS 2475
CourtEmergency Court of Appeals
DecidedJanuary 15, 1947
DocketNo. 307
StatusPublished
Cited by3 cases

This text of 159 F.2d 416 (Bell v. Fleming) 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
Bell v. Fleming, 159 F.2d 416, 1947 U.S. App. LEXIS 2475 (eca 1947).

Opinion

McALLISTER, Judge.

This case is concerned with Section 5(a) (3) of the Rent Regulation for housing in the Dallas Defense-Rental Area. 7 F.R. 8596.

In the above named rental area, complainant is the owner of two apartment buildings, one of which is known as the Franklin Apartments, and the other, the Walters Apartments. The first is one of the newest apartment buildings in Dallas, located in a highly desirable residential district; the latter apartment building is older and less conveniently located. Both buildings contain furnished one, and two room apartments, and “efficiency” apartments. Sixteen of these units are the subject of this controversy.

Shortly after the effective date of the regulation, on March 1, 1942, and continuing through 1943, complainant filed a series of petitions seeking increases of rentals by way of upward adjustments of the maximum rent which had been established for the sixteen units above mentioned. The petitions filed under Section 5(a) (3) of [418]*418the regulation1 were based upon the ground'that there had been a substantial increase in the services, furniture, furnishings, or equipment provided with the accommodations since the date on which the maximum rent was determined. In his petitions, complainant set forth that since March 1, 1942, he had supplied linens, bedding, cutlery, kitchen utensils, mantle mirrors, and full length door mirrors. Moreover, he showed that equipment, lamps, chairs, coffee tables, pictures, and a roll-away bed and studio couch were supplied at the request of certain tenants of the units. In two cases, increased rentals were asked because of additional occupancy. All of these petitions were granted by the Area Rent Director. Of the sixteen units granted increases, only six had been inspected. Of these six, the Rent Inspector recommended denial in toto of two of the petitions, and only a small increase in four. Among the increased rentals granted by the Area Rent Director were allowances of $20 a month for a credenza (a kind of sideboard), and a plate glass mirror over the mantle ; $10 per month for the addition of two mirrors and two lamps in another apartment; $10 per month in a two bedroom unit, for the reason that it was occupied by the wife of an Army officer, then overseas, and her two children, which occupancy,' it was asserted, was greater than the landlord’s practice permitted for the regular $110 rental.

On March 20, 1944, about a year and a half subsequent to the last increase granted, there was a change of rent directors in the Dallas Defense-Rental Area. The new director, after an examination of the files, concluded that the increases that had been granted on complainant’s petitions were excessive and contrary to the regulation. Accordingly, he determined upon the reopening of the proceedings, pursuant' to the pertinent procedural regulation2 for reconsideration of the petitions and orders that had been issued in the matter. Notices were given to complainant of the reopening of the proceedings; and after inspection of the premises in question, and the presentation of evidence, by complainant, the new rent director found that the increased rents theretofore granted were unjustified; that in certain stated cases, no garage facilities were being furnished, although they were included in the rent; that there was no actual additional occupancy where rental increases had been granted on that ground; and that, in general, the increased rentals that were granted were not warranted under the statute. [419]*419He, therefore, issued orders granting the original petitions, hut in amounts ranging from $5.00 to $7.50 per month, as compared with the original grants of $10 to $30 per month. These superseding orders were made prospective only. Following their entry, complainant filed sixteen applications for review. Pending determination of these applications, the rent director, on the application of another tenant and after due notice, decreased the maximum rents for additional units in the Franklin Apartments under Section 5(c) (3) of the regulation 3 on the ground that the garage service included in the maximum rent for that unit had since been discontinued. Complainant thereupon filed an application for review of the last named determination as well as the others. The Regional Administrator denied all the applications for review. Complainant then filed protests which were consolidated and eventually heard by a Board of Review, which recommended that the retroactive effect of a reduction in rent in a certain unit, because of a failure to furnish garage facilities, should not be retroactive, but only prospective; and, otherwise, it approved of, and sustained the action of the rent director in the reduction of rentals. The Price Administrator adopted the conclusions and recommendations of the Board of Review and, accordingly, also sustained the rental reductions.

Complainant first contends that the reopening of the proceedings after the first increase in rentals and reconsideration of the landlord’s petitions, with subsequent grant of increases in amounts less than originally allowed, was without legal warrant or authority. He claims that the provisions of Section 208(b) of Revised Procedural Regulation No. 3 concerning revocation or modification of orders entered by a rent director upon due notice are contrary to public policy and violative of the federal Constitution. The underlying assumption of this argument is that orders issued by a rent director are final in form, and, on their issuance, rights become vested and the proceedings, fully adjudicated. Complainant further argues that the lapse of a year and a half beween the action of the first rent director and his successor was, under the doctrine of laches, a bar to the reopening of the proceedings. Finally, complainant contends that the Administrator’s determinations are improper because they were an attempt to fix rents for housing accommodations under Revised Procedural Regulation No. 3, whereas such regulation, as amended, fixes no standards for the reduction of rent and is “contrary to public policy, and violative of the Constitution of the United States, in that no standard or criterion of rent is fixed in said regulation.” Complainant assumes that while previous government action may be modified or corrected because of fraud, accident, or mistake of law, the proceedings here instituted, were arbitrary, unreasonable, malicious and resulted merely in substitution of the judgment of one administrative official for that of another.

We may here dispose of the argument that doctrines such as laches, equitable estoppel, and res adjudicata prevent the exercise of the Administrator’s authority to modify regulations and to reopen proceedings for the purpose of applying the provisions of the rent regulations to the facts as developed in the course of the reopened proceedings. For this authority clearly appears from the express provisions of the Emergency Price Control Act, 50 U.S.C.A.Appendix, § 901 et seq.

Section 2 of the Act provides: “Any regulation or order under this section may be established in such form and manner, may contain such classifications and differentiations, and may provide for such adjustments and reasonable exceptions, as in the judgment of the Administrator are necessary or proper to effectuate the purposes of the Act * *

[420]

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Related

Block v. Tenants, 2016 O Street, N. W.
70 A.2d 59 (District of Columbia Court of Appeals, 1949)
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66 A.2d 213 (District of Columbia Court of Appeals, 1949)
Hampshire Holding Corp. v. Creedon
161 F.2d 734 (Emergency Court of Appeals, 1947)

Cite This Page — Counsel Stack

Bluebook (online)
159 F.2d 416, 1947 U.S. App. LEXIS 2475, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bell-v-fleming-eca-1947.