Majerle Management Inc. v. District of Columbia Rental Housing Commission

866 A.2d 41, 2004 D.C. App. LEXIS 698, 2004 WL 3015664
CourtDistrict of Columbia Court of Appeals
DecidedDecember 30, 2004
Docket02-AA-427
StatusPublished
Cited by5 cases

This text of 866 A.2d 41 (Majerle Management Inc. v. District of Columbia Rental Housing Commission) is published on Counsel Stack Legal Research, covering District of Columbia Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Majerle Management Inc. v. District of Columbia Rental Housing Commission, 866 A.2d 41, 2004 D.C. App. LEXIS 698, 2004 WL 3015664 (D.C. 2004).

Opinion

STEADMAN, Senior Judge:

This case is before us for a second time after remand on a first appeal. The issue is the application of the three-year limitation for challenges to rent adjustments contained in the Rental Housing Act of 1985 (Act). D.C.Code § 45-2516(e) (1996) (now codified as D.C.Code § 42-3502.06(e) (2003)). 1 The Rental Housing Commission (RHC) ruled that the tenant who filed a rental overcharge claim in the case now before us could challenge a rent increase effectuated more than three years prior to the filing of the claim where (1) a further rent adjustment petition was filed by the housing provider during that three-year period and, in addition, (2) the housing provider had acknowledged both the correct lawful rent ceiling and the possibility of the tenant overcharge. Petitioner Ma-jerle Management, Inc. (Majerle) asserts that the RHC holding is inconsistent both with prior case law and with prior holdings of the RHC interpreting the Act. We think that the RHC has permissibly found that the “unique set of facts” in this case, including the record admissions by Majerle, distinguish this case from our past precedent and from earlier RHC holdings. Accordingly, we affirm, the order of the RHC imposing sanctions for rent overcharges.

I. Facts

The factual background prior to remand in the first appeal is set forth in the court’s opinion in Majerle Mgmt., Inc. v. D.C. Rental Hous. Comm’n, 768 A.2d 1003, 1005-06 (D.C.2001) (Majerle 7). We set forth here only the facts relevant to the issues that arise from Majerle’s challenge in this appeal to the RHC’s March 26, 2002 decision and order following remand.

In the mid-1970s, Bertha Redmond (Redmond) became a tenant in a five-unit apartment building located at 4301 Halley Terrace, Southeast, in the District of Columbia. In December 1986, William and Mary Bailey purchased that property as tenants by the entirety and continued to rent the building’s units, including Redmond’s. On December 22, 1987, pursuant to the Rental Housing Act of 1985, D.C.Code § 45-2501 et seq. (1987) (current version at D.C.Code § 42-3501.01 et seq. (2003)), William Bailey filed an amended registration statement for the property, which the RHC found to be defective in certain respects, 2 that increased Redmond’s rent ceiling and monthly rent from $218 per month to $228 per month, effective September 1,1987.

*43 Redmond paid $228 monthly in rent until November 1, 1988, when the rent was again increased to $289 per month, an amount that Redmond subsequently paid. On September 1, 1989, Mary and William Bailey 3 increased Redmond’s rent further to $250 per month, again an amount that Redmond paid. The Rent Administrator has no record of any filing relating to either of these last two rent increases, and the record does not reveal that any such filing was ever submitted.

On March 28, 1990, an amended registration form was filed listing Mary Bailey as the property owner and Majerle as the management company. This March 1990 registration form contained no information concerning rent levels. On May 31, 1991, Majerle sent a notice of an automatic rent increase to Redmond that indicated that her rent ceiling was $228 and would be increased to $240, despite the fact that the rent being charged was $250 per month. The May 31, 1991 notice also stated that Redmond “may have been overcharged ... rent _”. 4 Pursuant to 14 DCMR § 4204.10, 5 the housing provider sought to take and perfect its rent ceiling increase by filing, on July 1, 1991, a certificate of adjustment of general applicability (an automatic rent increase). On that date, the housing provider also filed a third amended registration form. The July 1991 rent adjustment reflected an increase to $240. The July 1991 registration filing was defective, in part, because the certificate of occupancy and housing business licenses attached to it contained errors. Specifically, neither the certificate of occupancy nor the housing business license were, as required, issued to the owner of the property, Mary Bailey. The certificate of occupancy also was defective because it was issued for a four-unit building, but was attached to an amended registration form and housing business license reflecting a five-unit property. In July 1991, Majerle, in fact, decreased Redmond’s monthly rent from $250 to $240.

On September 22,1992, Redmond filed a complaint with the Rental Accommodations and Conversion Division (RACD) against “Majerle Management Inc./For *44 Mary Bailey and the Estate of William Bailey” in which she alleged that the rent she was charged exceeded the lawful rent ceiling. 6 During the RACD hearing, the housing provider testified that the legal rent ceiling for Redmond’s unit was $228 per month at the time it executed its May 31, 1991 notice. 7 Following a lengthy hearing and appeals process, the RHC, to which appeals from the RACD may be taken, issued a final decision on June 4, 1999, awarding Redmond treble damages for rent overcharges from September 22, 1989 through March 27, 1996, the date of the RACD hearing, including interest. 8 The RHC calculated the overcharge based on its holding that the lawfully permitted rent ceiling was $228 per month. The RHC rejected Majerle’s claim that because the $250 per month rent had been charged since September 1, 1989, three years and 21 days prior to the filing of the claim, the statute forbade any examination of alleged unlawful adjustments prior to that three year period so as to form the basis for the overcharge claim. Majerle petitioned this court for review of the RHC’s decision. On March 15, 2001, we issued Majerle /, 768 A.2d at 1010, affirming the RHC’s ruling that Majerle was liable to Redmond for excess rent charged above what it found to be the lawful rent ceiling of $228.

Majerle sought rehearing or rehearing en banc, requesting further review of our decision to reject its claim that the three year statute of limitations barred Redmond’s challenge to the $250 per month rent. It cited a number of RHC decisions that it said were in direct conflict with our holding, in addition to our prior decision in Kennedy v. D.C. Rental Hous. Comm’n, *45 709 A.2d 94 (D.C.1998).

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Bluebook (online)
866 A.2d 41, 2004 D.C. App. LEXIS 698, 2004 WL 3015664, Counsel Stack Legal Research, https://law.counselstack.com/opinion/majerle-management-inc-v-district-of-columbia-rental-housing-commission-dc-2004.