Heinicke v. Parr

168 F.2d 194, 1948 U.S. App. LEXIS 2031
CourtCourt of Appeals for the Sixth Circuit
DecidedMay 24, 1948
DocketNo. 10600
StatusPublished
Cited by11 cases

This text of 168 F.2d 194 (Heinicke v. Parr) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Heinicke v. Parr, 168 F.2d 194, 1948 U.S. App. LEXIS 2031 (6th Cir. 1948).

Opinion

MARTIN, Circuit Judge.

The appellant, a veteran of World War II, brought a civil action in the District Court for Southern Ohio against the four appellees, who successfully moved to dismiss on the ground that the complaint failed to state a claim against them upon which relief could be granted. The amended complaint which was dismissed averred [195]*195that the action arises under the Second War Powers Act, as amended, and that jurisdiction of the cause is vested in the United States District Court by section 633, 50 U.S.C.A. Appendix, subsection 2(a) (6) of the T^ct.

The amended complaint alleged that, pursuant to the Second War Powers Act, the Civilian Production Administration issued Priorities Regulation 33, which provides for the granting of priority assistance to builders of houses for veterans of the recent war and restricts the builder and any other person from selling a one-family dwelling unit built under the regulation for more than the maximum sales price specified in the approved application for priority assistance, plus normal and customary brokerage fees actually paid for services rendered on sales after the sale by the builder.

It appears from the complaint that Bufler and Parr were partners in the business of building and selling houses. On January 18, 1946, Bufler applied for priorities assistance under the Civilian Production Administration’s Priorities Regulation to build 50 houses in North College Hill, Hamilton County, Ohio. On January 22, 1946, the application was approved for 10 units, with a maximum sales price of $8,250 each, issued under Project Serial Number 6-046-0005. Eleven days later, these contractors, Bufler and Parr, obtained a permit from the City of North College Hill to build a one-family dwelling at 2002 Van Zandt Road in North College Hill, and built there a one-family dwelling “of substantially the same construction as the houses for which they received priorities assistance” under the aforementioned Project Number.

Appellant’s complaint declared that Bufler and Parr filed no application and received no priority for building the dwelling at 2002 Van Zandt Road; but, in constructing it, used building materials acquired by or for them under Priority No. 6-046-0005. The builders, Bufler and Parr, sold this dwelling for $9,500 on June 6, 1946, to the appellee, Mary K. McKnight. On August 21, 1946, she sold it for $11,000 to the appellee, Roberta S. Hahn, who, in turn on October 22, 1947, sold the one-family dwelling to the veteran appellant for $12,500.

In the prayer of the complaint, appellant asked that an order be entered holding that the maximum sales price of $8,250 be applied to the house purchased by him, for the reason that the building was done with materials acquired under a priority which established that price, the house being of substantially the same construction as the houses built under priority. The appellant prayed further for a mandatory injunction requiring the defendants, “in the proportions and order in which their respective obligations may appear,” to refund to him $4,250, less normal and customary brokerage fees, if any, paid on the respective sales by Mary K. McKnight and Roberta S. Hahn, with legal interest from October 22, 1946. The amended complaint concluded with a prayer for the allowance of reasonable attorney’s fees and costs.

In its order dismissing the amended complaint, the District Court held that it lacked jurisdiction “to entertain this action for damages, first, because the Amended Complaint admits that the defendants Joseph Parr and Merle Bufler did not file an application for or receive a priority to build the dwelling described in the Amended Complaint, as required by Priorities Regulation No. 33 of the Civilian Production Administration, and second, the Second War Powers Act and said Priorities Regulation No. 33 provide for punishment by fine or imprisonment only for a violation of said regulation.”

We are hot in accord with the reasoning of the District Court. In express terms, the Second War Powers Act provides: “The district courts of the United States * * * shall have jurisdiction of violations of this subsection (a) or any rule, regulation, or order or subpena thereunder, whether heretofore or hereafter issued, and of all civil actions under this subsection (a) to enforce any liability or duty created by, or to enjoin any violation of, this subsection (a) or any rule, regulation, order, or subpena thereunder whether heretofore or hereafter issued. Any criminal proceeding on account of any such violation may be brought in any district in which any act, [196]*196failure to act, or transaction constituting the violation occurred. Any such civil action may be brought in any such district or in the district in which the defendant resides or transacts business. * * * ” U.S.C.A., Title 50 Appendix, section 633, subsection 2(a) (6). This subsection provides further for the service of process in both criminal and civil cases.

Certainly, from the language of the Act, Congress contemplated that enforcement of its provisions was not limited to resort to criminal proceedings, for the district courts were vested with express jurisdiction of all civil actions to enforce any liability or duty created under the Act, and with jurisdiction to enjoin any violation thereof, or the violation of any rule, regulation, or order promulgated thereunder.

Priorities Regulation 33, relied upon in the Amended Complaint, provides, inter alia: “No other person shall sell a one-family dwelling built or converted under this section, including the land and all improvements, for more than the maximum sales price specified in the application as approved, plus the amount of any normal and customary brokerage fees or commissions actually paid for services which have been rendered in connection with the sale being made, whether paid by the seller or the purchaser, plus normal and customary brokerage fees actually paid for services rendered in connection with previous sales of the dwelling (after the sale by the builder) whether paid by previous sellers or purchasers.” Code of Federal Regulations (Supp.1946), Title 32, Ch. IX, sec. 944.54 (g) (2) (iii).

Appellees contend that the Act of Congress, itself, creates no civil right of action, but simply gives the federal courts jurisdiction where an administrative regulation, promulgated pursuant to the Act, authorizes such action, which Priorities Regulation 33 does not do; and that neither the Act nor the Regulation gives a private purchaser, though a veteran, the right to recover a money judgment for a violation of the provisions of the Regulation. It is pointed out that the Act of Congress provides specific criminal penalties for violation of any regulation issued pursuant to the Act, and that Priorities Regulation 33 provides only that any person who wilfully violates any of its provisions is guilty of a crime for which he may be punished by fine or imprisonment. The point is stressed that no provision is made for a civil remedy; and that statutory remedial causes of action do not rise by implication from a criminal penalty.

It cannot reasonably be gainsaid that, in inaugurating the veterans’ housing program, Congress intended to extend to veterans actual aid and real priority in the acquisition of habitable abodes.

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Bluebook (online)
168 F.2d 194, 1948 U.S. App. LEXIS 2031, Counsel Stack Legal Research, https://law.counselstack.com/opinion/heinicke-v-parr-ca6-1948.