Gable Management Corp. v. Bowles

151 F.2d 82, 1945 U.S. App. LEXIS 2905
CourtEmergency Court of Appeals
DecidedAugust 29, 1945
DocketNo. 215
StatusPublished
Cited by2 cases

This text of 151 F.2d 82 (Gable Management Corp. v. Bowles) 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
Gable Management Corp. v. Bowles, 151 F.2d 82, 1945 U.S. App. LEXIS 2905 (eca 1945).

Opinion

McALLISTER, Judge.

Subsequent to its organization in 1941, complainant Gable Management Corporation invested approximately $56,000.00 in building and furnishing housing accommodations known as Gable Lodges, located about five miles west of Lake Charles, Louisiana. The buildings are southern colonial in style, have southern colonial maple furnishings, and are situated on a six-acre landscaped tract, with playgrounds and recreation facilities for guests. Each housing unit is separate, with the exception of the rooms in the main lodge. Some of the units have attached garages. There is also a lounge, forty by eighty feet, which contains books, magazines, newspapers, radios, games, bridge tables, writing desks, chairs, and divans. Fifteen of the units have private tiled baths. Maid and linen service were furnished by the management.

On September 3, 1943, the Rent Director for the Lake Charles Defense-Rental Area issued an order decreasing the maximum rent, which complainant was receiving for Gable Lodges on the rent freeze dates, under the authority granted in Section 5(c) (1) of the Rent Regulation for Hotels and Rooming Houses in the Lake Charles Defense-Rental Area, which provides:

“The Administrator at any time * * * may order a decrease of the maximum rent otherwise allowable, only on the grounds that: (1) the maximum rent for the room is higher than the rent generally prevailing in the Defense-Rental Area for comparable housing accommodations on the maximum rent date.”

Objecting to this order, complainants, Gable Management Corporation, and W. F. Horsting, its president, sought review by the Regional Administrator for Region V, and thereafter, the Regional Administrator entered an order confirming in substance the maximum rents as fixed by the Rent Director of the Lake Charles Area.

Subsequently, in protest proceedings, the Administrator allowed slight increases in rates for certain of the units, but generally affirmed the determination of the Rent Director, dismissing in part, granting in part, and otherwise denying the claims of protestants, who thereafter filed complaint against the Administrator in this Court.

There is no question that Gable Lodges is a very attractive tourist court, and, in appearance, much more desirable than any of the other courts selected for comparison. It has the lounge and recreational facilities that are lacking in the other places. It appears to be located in a large, spacious, beautiful grove. The architectural style of the separate lodges and the central building is admirable. No liquor is sold on the premises. The patronage seems to have been made up of a high type of citizens.

By the action of the Office of Price Administration, the rents for Gable Lodges were reduced 40% below the rates in effect during the 30-day period prior to March 31, 1942, which was the critical rent date for the Lake Charles Defense Area; and this reduction resulted in a loss of gross rentals of more than $600 a month. Complainants [84]*84say that this reduction of rentals necessitated the closing and the loss of use of the premises from April 26, 1944, to the present time. There is, however, as pointed out by counsel for the Administrator, nothing in the record to show that the lodges were not operated profitably, or could not have been so operated, with the reduced rentals. It may be remarked, further, that counsel for the Administrator suggest that among the reasons why complainants decided to suspend operations of Gable Lodges, may have been the fact that, due to war time conditions, it became difficult to secure services, and also, that certain war plants in the area were dosed down. But the reason for the suspension of operations is a question not here in issue. The foregoing observations serve to give some of the background of the controversy.

Complainants charge that the action fixing the maximum rental rates was arbitrary and capricious, in that such rates do not represent a fair rental for the housing units, and are less than the rental rates generally prevailing for comparable housing accommodations in the Lake Charles Area on March 1, 1942, and for the thirty days preceding that date. It is further charged that there was no substantial evidence on which to base the determination of rentals by the Price Administrator. Summarized more specifically, the contentions of complainants are: (1) That complainants’ units should have been compared with hotels in Lake Charles rather than (as they claim) with inferior tourist court accommodations; (2) that the units in question are superior to those in the tourist courts used for comparison, because they are modern, located on more spacious grounds, provide recreational facilities, and are equipped with a central lodge and lounges; (3) that comparisons of room sizes of units at other tourist courts used as comparables, show that the registered rents for complainants’ units should not have been disturbed.

The questions presented for the decision of the Administrator in the protest proceedings were factual: (1) Whether the registered rents for complainants’ units were higher than the rents generally prevailing for comparable accommodations in the area on the maximum rent date; and (2), in case such registered rents were higher than those generally prevailing, then, a determination of the amounts at which maximum daily and weekly rates should be established for each of the complainants’ units, based upon the rent generally prevailing for comparable units in the Lake Charles Defense-Rental Area on March 1, 1942.

In arriving at his decision on these questions, the Administrator had before him a considerable body of data, pertaining to numerous tourist courts or camps and hotels located in the .area, together with affidavits of Daniel P. Gerald, Rent Examiner-Inspector in the Lake Charles Defense-Rental Area office of the Office of Price Administration, which are referred to by counsel for the Administrator as containing “painstaking and infinitely complete details for a great number of units at Gable Lodges, Canaysho Gulf and Sulphur Courts, including location, size services, equipment, furnishings, maximum rent date rents, etc., upon which data — assembled after physical inspections — his expert opinion was predicated.”

We may here observe that because of the strenuous attacks made upon the Gerald affidavits by complainants, we have subjected this evidence to the utmost scrutiny, and have carefully considered it in the light of all the other proofs, as well as the adverse claims in the case. In fact, ou'r chief concern in the consideration of this case has been with respect to the affidavits of Gerald, which were incorporated into the record by order of the Price Administrator, and which were relied upon for the statements of fact therein as well as for the expression of expert opinion. For the original decrease in the rental rates in complainants’ units was based upon Gerald’s investigation, findings, and report, and the determination of the Administrator likewise was largely founded on the same data, as well as upon the Gerald affidavits with reference thereto, and in explanation of claimed inconsistencies therein.

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Bluebook (online)
151 F.2d 82, 1945 U.S. App. LEXIS 2905, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gable-management-corp-v-bowles-eca-1945.