Bowles v. Carothers

152 F.2d 603, 1945 U.S. App. LEXIS 2325
CourtCourt of Appeals for the Fifth Circuit
DecidedDecember 13, 1945
DocketNo. 11293
StatusPublished
Cited by6 cases

This text of 152 F.2d 603 (Bowles v. Carothers) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bowles v. Carothers, 152 F.2d 603, 1945 U.S. App. LEXIS 2325 (5th Cir. 1945).

Opinion

LEE, Circuit Judge.

The Price Administrator brought this suit to enjoin the defendants from violating the Emergency Price Control Act of 1942, 56 Stat. 23, as amended by the Stabilization Extension Act of 1944, 58 Stat. 632-640, 50 U.S.C.A.Appendix. § 901 et seq.

The facts are undisputed: Defendants as co-partners operated one automobile parking lot in Dallas, Texas, and defendant D. M. Carothers individually operated eighteen such lots in Houston, Texas. Under their method of operation, referred to as the “park and lock” plan, the customer drives his car upon the lot, parks and locks it, and retains the key; the car remains parked until the customer reclaims it, at which time he pays defendants’ cashier, or, in the absence of the cashier, deposits the correct amount in an envelope provided for the purpose and drops the envelope in a locked receptacle. There is neither a car attendant nor a watchman on duty.

The bill of complaint alleged, and it was admitted at the trial, that defendants were charging prices in excess of the maximum price fixed by the Administrator under Maximum Price Regulation No. 165 for the service rendered at the Dallas lot; that protest proceedings filed by the partnership under Section 204 of the Emergency Price Control Act were pending; that defendant Carothers was abiding by the maximum price fixed for the service rendered at ten of the Houston lots, but intended to file a protest under Section 203 of the Act to challenge the price established by the Administrator as the maximum; and that Carothers, in violation of Section 102(c) of the regulation, had failed to report the prices being charged at the other eight lots in Houston.

Defendants pleaded that they were not selling a service or commodity; that as applied to their operations the regulation was invalid as being unauthorized by the Act; and that since they were pursuing and would pursue their remedies under Sections 203 and 204 of the Act, they were entitled to urge the invalidity of the regulation as a defense.

The court below denied injunctive relief with respect to the parking lot in Dallas and the ten lots in Houston; but granted injunctive relief to the extent of ordering the defendant Carothers to file with the Administrator a schedule of prices. Judgment was entered accordingly.1

Appealing from that portion of the judgment adverse to him, the Administrator urges that the court below erred (1) in denying the relief prayed for;2 (2) in deny[605]*605ing the injunction prayed for because of the pendency of proceedings challenging the validity of the order fixing rates for the defendants’ parking lot in Dallas, and because of defendant Carothers’ intention to institute similar proceedings challenging the validity of the order fixing rates for the ten parking lots in Houston; and (3) in failing to hold that the defendants were legally bound to comply with the Maximum Price Regulation and all orders issued thereunder until the same had been set aside pursuant to the provisions of the Emergency Price Control Act of 1942.

By cross-appeal defendant Carothers urges that the court below erred in directing him to file with the Harris County War Price and Rationing Board his schedule of prices on the premises located in Houston, Texas, upon which no schedule of prices had been filed; and all of the defendants urge that the court below erred in taxing them with one half of the costs.

Entertaining doubts that the business of defendants was within the scope of the Emergency Price Control Act, and that the Price Administrator had authority to fix rates for the parking lot in Dallas or for the ten parking lots in Houston, and finding that proceedings were pending challenging the validity of the order fixing rates for the Dallas lot, and that defendant Carothers intended to institute similar proceedings challenging the order fixing rates for the ten parking lots in Houston, the court below refused to issue an injunction, being of the opinion that the validity of the orders would be determined in those proceedings. In this holding, we do not concur.

Whether the business conducted by the defendants came within the scope of the Emergency Price Control Act, and whether such business was subject to regulation by the Price Administrator under that Act, are questions which have to do with the validity of the Administrator’s order. The only court having original jurisdiction to hear and determine such issues is the Emergency Court of Appeals.1 *3 The Emergency Court of Appeals, said the Fourth Circuit in Bowles v. American Brewery, Inc., 4 Cir., 146 F.2d 842, 844, “is given exclusive jurisdiction over questions as to the validity of price regulations, whether such validity be tested by constitutional requirement, by the grant of power in the statute under which they were adopted or by modifications made in that grant of power”; and this court in Bowles v. Lake Lucerne Plaza, 5 Cir., 148 F.2d 967, 970, where a rent regulation was involved, said: “neither this court nor the court below has jurisdiction to consider the validity, the inconsistency, or the arbitrariness of administrative orders. Appellee’s remedy was in the Emergency Court. Neither this court nor the court below can set aside or modify the orders of the Rent Director or the orders of the Administrator. We can only construe and enforce them.”

A court in the exercise of sound judicial discretion may refuse to issue an injunction restraining the violation of an administrative order establishing maximum prices and rents, but it is error if the court so rules solely because it considers the order or regulation to be invalid. Bowles v. Nu-Way Laundry Co., 10 Cir., 144 F.2d 741, 746; Bowles v. Meyers, 4 Cir., 149 F. 2d 440.

To deny injunctive relief because of the pendency of a protest, or of protest and review proceedings, under Sections 203 and 204 of the Act is equally untenable. The Emergency Price Control Act, in providing for protest and review of maximum price and rent regulations, conclusively shows a manifest policy of Congress that such regulations should be complied with during the time their validity is being tested. Section 204(c) denies to the Emergency Court of Appeals the power to issue a temporary restraining order or in[606]*606terlocutory injunction staying or restraining in whole or in part any order or regulation establishing maximum prices or rents. Section 204(b) defers the effectiveness of any judgment of the Emergency Court of Appeals invalidating such an order or regulation for a period of thirty days from the entry thereof, and, if certiorari is applied for, until the final disposition of the cause by the Supreme Court. Finally and most significantly, Section 204 (e) (2) requires the court in which proceedings are brought to enjoin the violation of any such order, as a condition to granting a stay of proceedings, to issue an order temporarily restraining the defendant from violating any provisions of the order or regulation while the validity thereof is being litigated in the Emergency Court of Appeals. The reason for such policy is explained by the Supreme Court in Yakus v. United States, 321 U.S. 414, 64 S.Ct. 660, 88 L.Ed. 834.

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Related

United States v. Harris
136 F. Supp. 827 (E.D. Pennsylvania, 1955)
Wasservogel v. Becker
191 Misc. 599 (City of New York Municipal Court, 1948)
Carothers v. United States
161 F.2d 718 (Fifth Circuit, 1947)
Cochran v. St. Paul & Tacoma Lumber Co.
73 F. Supp. 288 (W.D. Washington, 1947)
Porter v. Eastern Sugar Associates
159 F.2d 299 (Fourth Circuit, 1947)
Porter v. Block
156 F.2d 264 (Fourth Circuit, 1946)

Cite This Page — Counsel Stack

Bluebook (online)
152 F.2d 603, 1945 U.S. App. LEXIS 2325, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bowles-v-carothers-ca5-1945.