Friedman v. Kennedy

40 A.2d 72, 1944 D.C. App. LEXIS 208
District of Columbia Court of Appeals·Decided November 22, 1944·No. No. 208·Published·Cited by 6 cases

Opinions

HOOD, Associate Judge.

Appellant is the owner of residential property which he leased in September, 1943, to appellee. The property was not rented on January 1, 1941, nor within the previous year, and under the District of Columbia Emergency Rent Act the maximum rent ceiling for it was the rent “generally prevailing for comparable housing accommodations as determined by the Administrator.” Code 1940, § 45 — 1602(1) (c). At the time of making of the lease to appellee no determination for this property had been made by the Administrator. The lease provided for a term of three years at a rental of $71.50 per month, the last twelve months’ rental being payable on execution of the lease and the first twenty-four months’ rental payable monthly in advance.

Appellee upon executing the lease paid the last twelve months’ rent and the first month’s rent; but when the second month’s, rent was due insisted that the rental paid in advance for the last twelve months should be applied to current rent, and refused further payment. Appellee then also contended that the rent charged was in excess of the prevailing rent for comparable housing. Appellant brought an action for possession for non-payment of rent. Appellee filed a cross-complaint, seeking to re-, scind the lease, to recover double the' ex-', cess rent paid — if the Administrator, should determine a lower rent — and attorneys’ fees. ■ ...

[74] The court proceedings were held in abeyance, awaiting action by the Rent Administrator. Appellee filed a petition with the Administrator, seeking a reduction of rent and an order requiring that the rent paid in advance be applied to current rent. His petition was dismissed because there was “no established rent ceiling” and “reduction of rent cannot be entertained until the rent is established” and because the relief sought regarding the provision of the lease requiring the last year’s rent in advance “is probably the function of the District Court in a suit brought by the tenant to rescind the contract.” However, the Administrator proceeded to act on a petition previously filed by appellant asking for a determination of the rent ceiling. The Administrator established a maximum rent ceiling of $67.50 per month.

Thereupon appellee amended his cross-complaint to seek rescission of the lease, judgment for $104 (alleged to be double the excess rent) and attorney’s fees.

A hearing in the court action followed, with apparently little dispute as to the facts. The case was taken under advisement and thereafter, at the request of the trial court, the case was reargued. On re-argument appellee, conceding that he could not recover damages and also have rescission of the lease, again amended his cross-complaint to seek only rescission' of the lease and attorneys’ fees. Again the case was taken under advisement and while so under advisement appellant took a voluntary non-suit of his action for possession, leaving before the court only the matter of appellee’s cross-complaint.

The court filed a written memorandum in which it found that appellant had “received rent in violation of the provisions of the Rent Act and of the order of the Administrator of Rent Control fixing a maximum rent ceiling of $67.50,” and that the appellee “is entitled to a rescission of the lease and a refund of rent.” Judgment was entered for appellee for $322, being the difference between the rent paid in advance and the rent then accrued and due at the rate established by the Administrator, and for rescission of the lease, plus attorneys’ .fees of $75.

Since appellee made no offer to surrender •possession, and the judgment rescinding the lease did not require surrender of possession, the question is presented whether •under the Emergency Rent Act a tenant may obtain a rescission of his lease without surrendering possession of the propérty, which possession he secured under the rescinded lease.

Section 10(a) of the Emergency Rent Act provides:

“If any landlord receives rent or refuses to render services in violation of any provision of this Act, or of any regulation or order thereunder prescribing a rent ceiling or service standard, the tenant paying such rent or entitled to such service, or the Administrator on behalf of such tenant, may bring suit to rescind the lease or rental agreement, or, in case of violation of a maximum-rent ceiling, an action for double the amount by which the rent paid exceeded the applicable rent ceiling and, in case of violation of a minimum-service standard, an action for double the value of the services refused in violation of the applicable minimum-service standard or for $50, whichever is greater in either case, plus reasonable attorneys’ fees and costs as determined by the court. * * * ”

The Act does not define the word “rescind”, and we must accept its meaning to be that ordinarily ascribed to it. Black, in his well known work on Rescission and Cancellation, (1916), sec. 1, says: “To rescind a contract is not merely to terminate it but to abrogate and undo it from the beginning; that is, not merely to release the parties from further obligation to each other in respect to the subject of the contract, but to annul the contract and restore the parties to the relative positions which they would have occupied if no such contract had ever been made.” This language has been quoted with approval in many decided cases. E.g. Sylvania Industrial Corporation v. Lilienfeld’s Estate, 4 Cir., 132 F.2d 887, 145 A.L.R. 612; National Supply Co. v. Southern Creamery Co., 224 Ala. 507, 140 So. 590; Reed v. McLaws, 56 Ariz. 556, 110 P.2d 222; Wall v. Zynda, 283 Mich. 260, 278 N.W. 66; J. I. Case Threshing Machine Co. v. Street, Tex.Civ.App., 216 S.W. 426. Other authorities have used language to the same effect, saying that to rescind means to annul, to put an end to as though it never existed, to wipe out the instrument. Williston, Contr., sec. 1454 (a); Russell v. Stephens, 191 Wash. 314, 71 P.2d 30; United Wool Dyeing & Finishing Co. v. Werner & Co., 102 N.J.Eq. 322, 140 A. 465.

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Friedman v. Kennedy, 40 A.2d 72, 1944 D.C. App. LEXIS 208 (D.C. 1944).

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