Bowles v. Babcock

65 F. Supp. 380, 1946 U.S. Dist. LEXIS 2766
CourtDistrict Court, D. Maryland
DecidedMarch 11, 1946
DocketCivil Action No. 2733
StatusPublished
Cited by5 cases

This text of 65 F. Supp. 380 (Bowles v. Babcock) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bowles v. Babcock, 65 F. Supp. 380, 1946 U.S. Dist. LEXIS 2766 (D. Md. 1946).

Opinion

WILLIAM C. COLEMAN, District Judge.

This is a treble damage suit brought by the Price Administrator, Office of Price Administration, under Section 205(c) and (e) of the Emergency Price Control Act of 1942, as amended by the Stabilization Extension Act of 1944, 50 U.S.C.A.Appendix § 925 (c, e), against the defendant, a landlord in the town of Mt. Rainer, Maryland, embraced in the defense rental area in Montgomery and Prince George’s Counties, for an alleged violation of a maximum rent regulation for housing promulgated under the provisions of the aforementioned statutes and of an order issued in connection therewith by the Rent Director for that area.

The material facts involved in the present suit, which are not disputed, are as follows: Effective July 1, 1942, the Price Administrator duly issued Maximum Rent Regulation No. 25 (8 F.R. 7322) applicable to the present defendant’s premises. Section 2 of this regulation prohibits the demand or receipt of rent in excess of the applicable ceiling price established in the regulation which has continued in effect up to the present time. On December 14, 1943, the defendant having changed her apartment premises from unfurnished to a furnished apartment, rented them as the latter for the first time at the rate of $100 a month but did not file a registration of same until October 14, 1944. On November 25, 1944, the Area Rent Director reduced the rent to $72.50 a month, “effective beginning with the next regular rent payment period.” Shortly thereafter, however, he notified the landlord that this order would be modified making the reduction in rent retroactive to December 14, 1943, that is, to the commencement date of the leasing of the premises as a furnished apartment. The landlord by this notice was given an opportunity to file any objection he might have to the proposed modification of the order. He made no formal objection, however, and on December 30, 1944, a new order was issued, changing the order of November 25, and reading as follows: “Issued Dec 30 1944 and effective beginning from the date of the first renting or from the beginning of the first rental period on or after October 1, 1943, whichever is the later. No rent in excess of the Maximum Rent established by this order may be received or demanded. This order will remain in effect until changed by the Office of Price Administration.” The later order also contained the following notation which was not embraced in the earlier order, due, as counsel for the Administrator claimed at the trial, to an oversight: “All rent received by you since the effective date of this order, in excess of the maximum legal rent established hereby, namely $72.50 per mo. is subject to refund to the tenant. Upon your failure to make such refund [382]*382within 30 days from the date hereof, the excess payment received will be considered an overcharge within the meaning of sec. 205(e) of the Emergency Price Control Act of 1942, as amended, subjecting you to a damage action in accordance with that section.”

Pursuant to the terms of this last order,, the tenant became entitled to a refund of $27.50 per month from December 14, 1943, to November 11, 1944, on which latter date defendant had begun charging, and thereafter, continued to charge the tenant on the basis of the reduced rental namely, $72.50 a month. The defendant having made no refund whatsoever to the tenant and the tenant having instituted no suit against the defendant for a refund, on September 6, 1945, the Administrator instituted the present proceeding, claiming damages at the rate of $27.50 a month for approximately eleven months from December 14, 1943, to November 11, 1944, which, when trebled, totals $990.

The defendant has moved to dismiss the Price Administrator’s complaint on two major grounds: First, that the suit being for damages of a retroactive character, is not authorized by the Emergency Price Control Act of 1942, as amended by the Stabilization Extension Act of 1944; and second, that in any event all but very limited refund is barred by limitations. This latter contention, stated more specifically, is twofold, as follows: (1) That since the present suit was not filed until September 6th, 1945, if the defendant be liable for any overcharge, such must be confined to the months of September, October and November, 1944, because of the one year limitation provision in the Act; and (2) that under no circumstances could the Act be made retroactive beyond June 30, 1944, the date of its enactment, because the Act, by its very terms, prohibits so doing.

The Price Administrator, on the other hand, contends that the Area Rent Director’s order of December 30, 1944, must be given a strictly literal interpretation and that therefore, since it expressly relates back to the.origin of the lease, full effect must be given to the order’s retroactive character. In support of this contention, the Price Administrator relies upon Section 4(j) of Rent Regulation for Housing. This Section, originally effective July 1, 1943, has several times been amended. At the time of the issuance of the order of December 30, 1944, as well as on the date when by its terms it became retroactively effective, that is, December 14, 1943, this Section read as follows:

“Maximum rents. Maximum rents (unless and until changed by the Administrator as provided in section 5) shall be: * * *

“(j) Changed on or after July 1, 1943 or the effective date of regulation, whichever is the later, from unfurnished to furnished. For housing accommodations changed on or after July 1, 1943 or the effective date of regulation, whichever is the later, from unfurnished to fully furnished, the first rent for such accommodations after such change. The Administrator may order a decrease in the maximum rent as provided in section 5(c) (1).

“Within 30 days after the accommodations are first rented fully furnished, the landlord shall register the accommodations as provided in section 7. If the landlord fails to file a registration statement within the time specified, the rent received from the time of such first renting shall be received subject to refund to the tenant of any amount in excess of the maximum rent which may later be fixed by an order under section 5(c) (1). In such case, the order under section 5(c) (1) shall be effective to decrease the maximum rent from the time of such first renting. The foregoing provisions and any refund thereunder do not affect any civil or criminal liability provided by the act for failure to file the registration statement required by section 7.” 8-F.R. 9020, 9 F.R. 11336-7.

It is clear that defendant did not violate the first order dated November 25, 1944, because not merely “beginning with the next regular rent payment period,” as expressly provided in that order, but beginning on November 11, 1944, defendant has charged only the reduced rent, and in this order there was no retroactive provision.

It is equally clear that defendant could not, as respects any refund that might be required by the second order dated December 30, 1944, have violated the terms of that order until January 30, 1945, because he was given, by the express language of that order, thirty days from its date within which to make any such refund.

Likewise, except as to any refund that might be required with respect to rent collected prior to November 11, 1944, defendant cannot be found to have violated this second order because ever since that date [383]*383defendant has charged only on the basis of the reduced rent, namely, $72.50.

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Cite This Page — Counsel Stack

Bluebook (online)
65 F. Supp. 380, 1946 U.S. Dist. LEXIS 2766, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bowles-v-babcock-mdd-1946.