Heitmuller v. Berkow

165 F.2d 961, 83 U.S. App. D.C. 70, 1948 U.S. App. LEXIS 1977
CourtCourt of Appeals for the D.C. Circuit
DecidedJanuary 26, 1948
DocketNo. 9490
StatusPublished
Cited by7 cases

This text of 165 F.2d 961 (Heitmuller v. Berkow) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Heitmuller v. Berkow, 165 F.2d 961, 83 U.S. App. D.C. 70, 1948 U.S. App. LEXIS 1977 (D.C. Cir. 1948).

Opinion

CLARK, Associate Justice.

This is an appeal from the Municipal Court of Appeals, wherein affirmance was given to a judgment rendered by the Municipal Court for the District of Columbia in favor of appellee.

Appellee was a tenant in an apartment house owned by appellant, and he instituted a suit against the latter under the District of Columbia Emergency Rent Act,1 which provides for the recovery of double the amount of rent paid in excess of the maximum rent ceiling. Unlike the Federal Emergency Price Control Act of 1942,2 however, the local Rent Act does not limit the period within which such an action may be prosecuted. Appellee began his action in this case over one year after the major portion of his claim accrued,3 and appellant has contended that the suit was barred, as to that major portion of the claim, by the D.C.Code provision prescribing a one-year limitation upon actions “for any statutory penalty or forfeiture.”4 The courts below have accepted and sustained appellee’s contention that the suit was not for a penalty or forfeiture, but [962]*962was, instead, “an action the limitation of which, is not otherwise specially prescribed in this section,” 5 as to which a three-year limitation applies.

The Municipal Court of Appeals, 51 A2d 302, ruled that the question raised in this case was determined by the decision in Shenk v. Cohen, D.C.Mun.App.1947, 51 A.2d 298, a similar case decided in that court on the same day, in which it was held that the one-year limitation was inapplicable.

Appellant has argued before us his contention that the Municipal Court of Appeals has only decided that the Rent Act is not a penal statute. We believe the lower appellate court adequately answered the question presented and we endorse its opinion, but we will go further to expressly state our ruling that the Rent Act provision allowing recovery of an overcharge by a tenant does not impose a statutory penalty or forfeiture within the terms of the local statute of limitations. While it is true that the right of action exercised here is created by statute we think it is clear that Congress thereby intended to create a remedy rather than to impose a penalty. Chief Judge Cayton, speaking for the Municipal Court of Appeals, pointed out that “Subsection (a),6 as already noted, authorizes the tenant to recover twice the rent overcharge. Subsection (b)7 authorizes a fine or a jail sentence, or both. It is not without significance, we believe, that the very next subsection, subsection (c),8 mentions ‘damages or penalties’ in that order and no other ‘damages’ except those contained in subsection (a) are mentioned anywhere in the Act.”9

The Supreme Court in the case of Huntington v. Attrill, 1892, 146 U.S. 657, 13 S.Ct. 224, 36 L.Ed. 1123, treated the question of what is a penal law from the conflict of laws standpoint. The conclusions expressed therein were preceded by careful scrutiny of English and early American authorities, and this significant statement by Chief Justice Shaw of Massachusetts was quoted: “ 'The action is purely remedial, and has none of the characteristics of a penal prosecution. All damages for neglect or breach of duty operate to a certain' extent as punishment; but the distinction is that it is prosecuted for the purpose of punishment, and to deter others from offending in like manner. Here the plaintiff sets out the liability of the town to repair, and an injury to himself from a failure to perform that duty. The law gives him enhanced damages; but still they are recoverable to his own use, and in form and substance the [963]*963suit calls for indemnity.’ Reed v. Northfield, 13 Pick., Mass., 94, 100, 101, [23 Am.Dec. 662].” Mr. Justice Gray, speaking for the Court, then said: “The test whether a law is penal, in the strict and primary sense, is whether the wrong sought to be redressed is a wrong to the public or a wrong to the individual, according to the familiar classification of Blackstone: ‘Wrongs are divisible into two sorts or species: private wrongs and public wrongs. The former are an infringement or privation of the private or civil rights belonging to individuals, considered as individuals, and are thereupon frequently termed “civil injuriesthe latter are a breach and violation of public rights and duties, which affect the whole community, considered as a community; and are distinguished by the harsher appellation of “crimes and misdemeanors.’ 3 Bl.Comm. 2.”10

We consider the Huntington opinion noteworthy, although it is not determinative of the question sub judice. It does point the way to a determination of the question here, and it clearly influenced the decision by this court in the case of Pavarini & Wyne v. Title Guaranty & Surety Company, 1911, 36 App.D.C. 348, Ann.Cas. 1912C, 367. The suit there concerned the liability of the principal and sureties on the usual penal bond required by statute11 from persons contracting with the District of Columbia to construct or repair public buildings. Inasmuch as the suit was filed more than one year after the right of action accrued, the defense was raised that the one-year limitation applied. Chief Justice Shepard delivered the opinion for the court, in which he said, at page 350: “The contention is that the liability sought to be established is a statutory penalty, and hence barred because suit was not brought within one year. We cannot agree with that contention. The statute provides a new liability in order to remedy a growing mischief. Like the mechanics’ lien law of the States, it is remedial, and not penal. There are many different statutes, State and Federal, conferring rights of action, unknown to the common law, against wrongdoers. These are often spoken of as penal, just as the conditions of ordinary bonds are frequently spoken of as penalties; but neither the liability imposed for the benefit of private persons, nor the remedy given for its enforcement by civil action, is a statutory penalty in the proper legal sense.”12 To the same effect is this statement by Judge Biggs, speaking for the Circuit Court of Appeals, Third Circuit, in the recent decision in Porter v. Montgomery, 1947, 163 F.2d 211, 215: “A civil action is for damages if it is brought for the compensation of the injured individual. It is for a penalty if it seeks to obtain a sum of money for the state, an entity which has not suffered direct injury by reason of any prohibited action. In order to obtain damages the loss must flow out of the wrong and be its natural and proximate consequence. Smith v. Bolles, 132 U.S. 125, 130, 10 S.Ct. 39, 33 L.Ed. 279. A penalty need have no causal connection with the wrong inflicted. In a penal statute the penalty is inflicted by a law for its violation.”

Appellant has relied to a large extent on the decision announced in Bowles v. Farmers National Bank of Lebanon, 6 Cir., 1945, 147 F.2d 425.

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Bluebook (online)
165 F.2d 961, 83 U.S. App. D.C. 70, 1948 U.S. App. LEXIS 1977, Counsel Stack Legal Research, https://law.counselstack.com/opinion/heitmuller-v-berkow-cadc-1948.