Marshall v. DC RENTAL HOUSING COM'N

533 A.2d 1271
CourtDistrict of Columbia Court of Appeals
DecidedDecember 2, 1987
Docket86-911
StatusPublished

This text of 533 A.2d 1271 (Marshall v. DC RENTAL HOUSING COM'N) 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
Marshall v. DC RENTAL HOUSING COM'N, 533 A.2d 1271 (D.C. 1987).

Opinion

533 A.2d 1271 (1987)

Daisy MARSHALL, Petitioner,
v.
DISTRICT OF COLUMBIA RENTAL HOUSING COMMISSION, Respondent, and
William J. Davis, Inc., Intervenor.

No. 86-911.

District of Columbia Court of Appeals.

Argued June 9, 1987.
Decided December 2, 1987.

*1272 Kenneth S. Kaufman, with whom Amy L. Edwards, Washington, D.C., was on brief, for petitioner.

Victor E. Long, Asst. Corp. Counsel, with whom James R. Murphy, Acting Corp. Counsel at the time brief was filed, and Charles L. Reischel, Deputy Corp. Counsel, Washington, D.C., were on brief, for respondent.

Paul D. Crumrine, Washington, D.C., entered an appearance for intervenor.

Before MACK and ROGERS, Associate Judges, and NEBEKER,[*] Associate Judge, Retired.

MACK, Associate Judge:

Petitioner Daisy Marshall seeks review of a decision of the District of Columbia Rental Housing Commission ("RHC" or "Commission"). She alleges, first, that the RHC erred in holding that a landlord may increase the rent ceiling of a vacant rental unit to the rent ceiling of a rental unit located in a different building. Second, she claims that the RHC erred in concluding that the decision of the Rent Administrator —which found in favor of petitioner on the issue of rent overcharges—was not supported by substantial evidence. Lastly, she asks us to find that the RHC erred in reducing the amount of interest due on the Rent Administrator's award of damages for reduction of services resulting from petitioner's loss of air-conditioning. We affirm in part, reverse in part, and remand.

I

The RHC decision on review is a second reconsideration decision, as the RHC had twice before considered the Rent Administrator's order. In each of these prior instances, the RHC affirmed the Rent Administrator's order in full.

These proceedings began on October 5, 1981, when Ms. Marshall filed a tenant petition with the Rental Accommodations Office (RAO). She alleged that the landlord had been charging rents which exceeded the legal rent ceiling and that services had been reduced—specifically, that the air-conditioner had ceased to operate during the last week of May and was not repaired until August. After a hearing on November 5, 1981, the Administrator concluded that the landlord had charged Daisy Marshall rent in excess of the rent ceiling for her apartment. The first overcharge in 1976 was disallowed by the Rent Administrator because the landlord had not completed the required rate of return schedule. The second overcharge occurred when a vacancy rent increase was taken on the apartment in 1977, just before Ms. Marshall moved into it. The Rent Administrator noted that the substantially identical rental unit that the landlord used in raising the rent ceiling for Ms. Marshall's apartment was located in a different building than the one in which her apartment was located. Believing that the statutory language "housing accommodation" required that the rental unit used in implementing a vacancy rent increase be in the same building as the vacant unit itself, the Rent Administrator held that the 1977 vacancy rent increase was improper.[1] The Administrator ordered a rent refund of $702—trebled *1273 —with interest at $110.57 calculated at 5.25% on the single amount over a period of three years, for a total of $2216.57.

In regard to the reduction in service caused by the loss of air-conditioning, the Rent Administrator found that there was no air-conditioning for three months during the summer of 1981. The Rent Administrator awarded the tenant $55 per month in damages plus interest of $8.66 calculated at 5.25% over a period of one year for a total of $173.66.

A. The First Decision of the Rental Housing Commission

The landlord appealed the Rent Administrator's decision to the RHC. The landlord argued to the Commission that since both apartments were within the same multi-building housing complex, shared a common heating plant, were owned and managed by the same entities, and had the same housing registration, business license, and certificate of occupancy, the unit in the other building should be considered as located in the same housing accommodation as Ms. Marshall's unit. While the Commission recognized that it had, on other occasions, taken such factors into consideration in determining whether a multi-building housing complex should be treated as one housing accommodation for purposes of allowing a landlord to file a single hardship petition for a group of buildings, it declined to extend this interpretation of the statutory term "housing accommodation" to determinations involving vacancy rent increases. Thus, because the rental units here were in different buildings, the RHC concluded that the Rent Administrator was correct in holding that the 1977 vacancy rent increase was improper.

The Commission, however, noted that a hearing examiner had erred in taking official notice of the rent history for Daisy Marshall's apartment when it had not given the landlord the opportunity to contest any material fact of which official notice had been taken. The Commission, nevertheless, found the error harmless in view of the fact that the landlord could not show he was entitled to the 1977 vacancy rent increase, since it had already been established that the comparable unit on which the landlord based the rent increase was located in a different building.

The RHC did not address the five percent increase in rent implemented in 1976, apparently because the issue was not raised in the landlord's appeal. The RHC affirmed the Rent Administrator's decision on the reduction of services due to loss of air-conditioning.

B. The RHC's First Reconsideration Decision

When the landlord appealed the decision to this court, the RHC, on its own motion, sought a remand in order to state the reason for its divergence from a past decision which found an identical unit in a separate building could be the basis for a vacancy increase under § 208 (Pyne v. Northbrook Apartment Co., TP 325 (RAC Apr. 13, 1977)). In the reconsideration decision, the Commission once again affirmed the Rent Administrator's decision and explicitly overruled Pyne.

C. The RHC's Second Reconsideration Decision

The landlord filed another appeal with this court, and again the RHC moved for remand so that it could reconsider the case. On remand, the Commission issued the decision presently on appeal. It held unanimously for the landlord, ruling that the District's rent control legislation does not prohibit the use of comparable units in a different building within a multi-building complex where there is sufficient evidence that they are part of one, integrated, multi-building complex. In short, the Commission reinstated its 1977 Pyne decision.

The Commission reasoned that a vacancy rent ceiling adjustment is not unlawful solely because the "comparable" unit utilized is in a different building. It held that a tenant may, however, create a prima facie case of such violation by alleging and proving that the comparable unit is in a different building, and this will require the landlord to come forward with evidence "showing the various indicia of integration *1274

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Marshall v. District of Columbia Rental Housing Commission
533 A.2d 1271 (District of Columbia Court of Appeals, 1987)

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533 A.2d 1271, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marshall-v-dc-rental-housing-comn-dc-1987.