Hendon v. Porter

155 F.2d 376, 1946 U.S. App. LEXIS 2213
CourtEmergency Court of Appeals
DecidedMay 24, 1946
DocketNo. 297
StatusPublished

This text of 155 F.2d 376 (Hendon v. Porter) 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
Hendon v. Porter, 155 F.2d 376, 1946 U.S. App. LEXIS 2213 (eca 1946).

Opinion

MAGRUDER, Judge.

Barbara P. Hendon, complainant herein, is the operator of a parking lot in Birmingham, Alabama. As such she is subject to Revised Maximum Price Regulation No. 165 (9 F.R. 7439), § 4 of which establishes as the maximum prices for her parking services the highest prices charged for the same services in March, 1942. In that period complainant had in effect the following rates for her parking lot: 1() cents for parking one hour or less; 15 cents for all-day or unlimited parking. These became her maximum prices under the regulation.

The parking lot in question is • situated downtown, about two and one half blocks from the center of the shopping district but near by . a hotel, an office building, and a theater. In practice not oyer five per cent of the customers have used the lot for [377]*377short-term parking at the 10-cent rate, because there are other parking lots located more conveniently to the shopping area. Ninety-five per cent or more of the customers habitually have parked in complainant’s lot all day, or at least for periods in excess of one hour, at the 15-cent rate. Complainant has had in a shed on the lot an attendant whose particular duty it was to operate a time clock punch card machine for recording on a card given to each parker the time of arrival and departure.

Complainant undertook to discontinue the one-hour parking service and to maintain only the single service of unlimited parking- at the 15-cent rate. Her avowed reasons for making the change were as follows: (1) The simplified operation was more economical and would require fewer employees; (2) a one-rate system would eliminate petty pilferage by employees who might, under the two-rate system, charge for the 15-cent service and account to complainant as for the 10-cent service; (3) better service could be rendered to the all-day parkers constituting the greater part of complainant’s customers by reserving the whole area of the parking lot to their exclusive use.

Under date of June 21, 1945, the District Director, Office of Price Administration, sent to complainant, pursuant to § 205(f)' (2) of the Act, 50 U.S.C.A.Appendix, § 925(f) (2), a license warning notice reciting as follows: “You have increased your prices charged for parking in violation of Section 2 of Revised Maximum Price Regulation 165, as amended, in that you have discontinued your 10$i for two hours parking rate and are charging 15{i to customers parking for less than two hours.” 1

On August 27, 1945, complainant filed a protest against § 4 of RMPR 165 “insofar as it can properly and legally be construed or interpreted as prohibiting protestant from discontinuing one hour parking services.” The principal ground of objection was that the regulation as so interpreted conflicted with § 4(d) of the Act, 50 U.S. C.A.Appendix, § 904(d), reading: “Nothing in this Act shall be construed to require any person to sell any commodity or to offer any accommodations for rent.” The protest recited that protestant “does not intend to park automobiles for less than an hour but to specialize in the long term, all day parking service,” leaving parkers who desire to park for one hour or less free to park in other lots located nearer • to the shopping center. “A sign will proclaim that the lot no longer furnishes the one hour service.”

By order issued December 20, 1945, the Administrator denied the protest, after which the present complaint was filed.

In his opinion, the Administrator referred to Revised Supplementary Service Regulation No. 18, issued November 26, 1943 (8 F.R. 16165), which, as explained by the Administrator, was designed to formalize and expand interpretations previously given to RMPR 165. RSSR 18 stated: “A seller who is subject to Maximum Price Regulation No. 165 and who discontinues or fails to supply a service for which a maximum price is established under that regulation and sells or offers to sell in its place a higher priced service is evading the Emergency Price Control Act of 1942 as amended, and is violating Maximum Price Regulation No. 165.” It also prescribed procedure for applying for permission to discontinue a service and offer in its place a higher priced service, under certain restricted conditions. The Administrator’s opinion characterizes complainant’s proposed new method of operation as follows: “Protestant does not state that she proposes to prevent anyone from parking for one hour or less. She simply desires to charge such parkers the full day rate by withdrawing the rate for one hour or less. Thus, she cannot validly claim that she is being compelled to offer one-hour parking over her desires to discontinue it. The interpretation of Section 4 of Revised Maximum Price Regulation No. 165 has the effect only of preventing her from charging one hour parking customers a higher rate.” Further, the opinion states: “The fact remains that those users of Protestant’s parking lot who desire to [378]*378park for one hour or less will, under Protestant’s proposal, have to pay 150 instead of 100 for that service. This would constitute an unwarranted price increase which the Administrator is obligated to prevent under the Act.” To the same effect, the Administrator states in his brief: “The only requirement which has been imposed is that so long as a customer of Complainant actually receives only a short-term, rather than a long-term, parking service, the charge therefor be the same as that made in the base period.”

If the foregoing is a correct analysis of what complainant proposes to do, the case falls squarely within our decision in Buckeye Parking Corp. v. Bowles, Em.App.1944, 141 F.2d 692. There the operator of a parking lot had, in March, 1942, a minimum charge of 17 cents for one hour or less. This became the maximum price for such service. The operator proposed to raise the minimum charge to 20 cents for one hour and ten minutes. Thus, a person desiring to park for one hour or less would have to pay three cents more than the freeze date charge. We said (141 F.2d at page 694):

“Since the installation of the proposed schedules would result in higher charges to some parkers, we are of opinion that the Administrator had the right to prevent it . . . It is immaterial that the per minute rate td be charged under the proposed schedules would be the same as it was formerly; the amount the purchaser pays, not the method of its calculation, is the test as to whether there is an increased charge or not. The selling of time for which the purchaser would have no use would not make the higher rate any less an increase in price. The customer would have to pay an additional amount which he did not have to pay on the maximum price date, in March 1942, and such additional payment, like any other increase in price, would have an inflationary effect inconsistent with the purposes of the Emergency Price Control Act.”

In reply to the contention in the Buckeye case that the regulation as interpreted ran afoul of § 4(d) of the Act in that it prevented the parking lot operator from discontinuing its one-hour service, we said (141 F.2d at page 696):

“The answer to this contention obviously is that the Administrator is not interfering with complainant’s right to discontinue the one hour service. It may discontinue the service if it desires, but may not inaugurate a program which will have the effect of increasing its minimum charge.”

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Related

Buckeye Parking Corp. v. Bowles
141 F.2d 692 (Emergency Court of Appeals, 1944)

Cite This Page — Counsel Stack

Bluebook (online)
155 F.2d 376, 1946 U.S. App. LEXIS 2213, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hendon-v-porter-eca-1946.