O'Brien v. Brown

85 N.E.2d 685, 403 Ill. 183, 1949 Ill. LEXIS 302
CourtIllinois Supreme Court
DecidedMarch 24, 1949
DocketNo. 30802. Affirmed in part and reversed in part and remanded.
StatusPublished
Cited by14 cases

This text of 85 N.E.2d 685 (O'Brien v. Brown) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
O'Brien v. Brown, 85 N.E.2d 685, 403 Ill. 183, 1949 Ill. LEXIS 302 (Ill. 1949).

Opinions

Mr. Justice Gunn

delivered the opinion of the court:

Appellee, Vincent O’Brien, sued appellant, William R. Brown, in the superior court of Cook County to recover three times the amount of overcharge for rent exacted by appellant, as authorized by the Emergency Price Control Act and amendments thereto, and attorney fees. (50 U.S.C.A. App. sec. 925(e).) After the evidence was concluded the judge directed the jury to find the defendant had demanded and received $1320, in violation of such statute. The court entered judgment against defendant for the amount of $3960, and an additional amount of $500 fixed by the court as reasonable attorney fees. On a counterclaim of defendant the court directed the jury to find the issues thereunder for plaintiff. The defendant throughout the pleading and trial claimed that the Emergency Price Control Act was unconstitutional, and raised other constitutional questions, and consequently appeals directly to this court. Groome v. Freyn Engineering Co. 374 Ill. 113.

For a proper understanding of the questions involved a full statement of the pleadings and facts is necessary. Defendant leased to plaintiff a residence property in Chicago for the term October 1, 1941, to September 30, 1943. In like manner the premises were let to plaintiff by a second lease for the two-year term October 1, 1943, to September 30, 1945. The provision for rent was, in both leases, identical:

“First. Lessee shall pay to lessor, at the office of lessor, or designated agent, the rent per month of One hundred twenty-five dollars ($125.00) in advance, for the term created by this lease.”

Plaintiff remained in possession of the premises after notice from his landlord in August, 1945, that the lease would not be renewed. He stayed in possession until May 20, 1946, tendering to defendant the sum of $125 for each month of the occupancy beyond the end of the term of the second lease through April, 1946. These tenders were refused. At all times stated the maximum rent for the leased premises as fixed by the Emergency Price Control Act of 1942, the regulations thereunder,, and the registration statement filed by the landlord with respect to these premises was the sum of $125 per month, being the amount for which the premises were rented on the controlling date of March 1, 1942. •

On January 24, 1946, the defendant landlord commenced an action in the Municipal Court of Chicago against his tenant, the plaintiff herein. This action was for liquidated damages at the rate of $10 per day for each day of occupancy beyond the expiration of the term ending September 30, 1945. The provision" of the lease upon which this action was predicated reads as follows:

“Seventh. At the termination of this lease, by lapse of time or otherwise, the party of the second part shall yield up immediate possession to the party of the first part and shall deliver the keys to the demised premises to said first party or his agent at the place where rent is payable, and failing so to do, shall pay as liquidated damages for the whole time said possession is withheld the sum of ten and no/ioo dollars ($10.00) per day.”

In this action for liquidated damages the lessee filed a motion to dismiss on the ground that by virtue of the Emergency Price Control Act of 1942, as amended, and the rent regulations thereunder, such damages were not recoverable, as the effect would be to permit the recovery of rent higher than that permitted by the Office of Price Administrator. The motion was sustained in the municipal court and the action dismissed. The plaintiff in that action perfeqted an appeal to the Appellate Court. • On November 22, 1946, while that appeal was pending, and before the brief of the lessee-defendant was due, he wrote to the appellant there, the landlord, a letter partially reviewing their mutual dealings and contentions, and concluding thus: “I hereby tender to you $2320, in United States currency, being, as hereinabove set forth, the amount of your claim. In making this tender I do not admit the validity or legality of your claim. * * * More specifically, and without limiting the foregoing, I reserve any and all rights which I may have, by virtue of this tender and payment, under" the. Emergency Price Control Act of 1942, as amended, and the Price Control Extension Act of 1946.” The money thus tendered was accepted by defendant, and its receipt noted on the letter of tender.

Thereafter, on November 27, 1946, the tenant, O’Brien, made a motion in the case pending in the Appellate Court that the appeal be dismissed as moot, since the tenant had paid $10 per day for each of the 232 days of his possession of the premises beyond the term granted by the last lease. This motion was taken with the case by the Appellate Court after the landlord filed countersuggestions to the effect that the controversy involved the construction of the Emergency Price Control Act of 1942, and the tenant’s rights or lack of rights thereunder, which should be passed upon by the Appellate Court. The Appellate Court later dismissed the appeal as presenting a moot question.

On January 10, 1947, the present action was initiated by complaint in the superior court for three times the amount of the alleged overcharge of $1320, and for a reasonable attorney’s fee, as provided in the Emergency Price Control Act. (50 U.S.C.A. sec. 925(e).) The overcharge was calculated as being the difference between the $2320 paid, and the alleged permissible maximum rent for the eight months, October through May, 1946, at the rate of $125, or $1000. The answer of the defendant landlord, as amended, raised the defenses that the rent was not $125 per month, but $3000 for a two-year term, payable at the rate of $125 per month; that the superior court had no jurisdiction of the action; that the action was not brought within one year of the alleged violation; that the Emergency Price Control Act was unconstitutional, as it deprives the defendant of trial by jury, contrary to the constitutions of the United States and of the State of Illinois; and that the circumstances of the payment and the opinion of the Appellate Court estop the tenant from claiming that the payment was in fact anything other than liquidated damages for withholding possession.

The defendant landlord counterclaimed for damages for certain expenses of his former legal proceedings, together with amounts necessarily expended by him to put the premises in repair. This counterclaim as amended was based upon this provision of the lease:

“Third. Second party agrees to pay for any and all repairs that shall be necessary to put said premises in the same condition as when he entered therein, reasonable wear and loss' by fire excepted, and that the expense of such repairs shall be included within the terms of this lease and judgment by confession entered therefor.
“The party of the second part further covenants and agrees to pay and discharge all reasonable costs, attorney’s fees and expenses that shall be made and incurred by the party of the first part in enforcing the covenants and agreements of this lease.”

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Bluebook (online)
85 N.E.2d 685, 403 Ill. 183, 1949 Ill. LEXIS 302, Counsel Stack Legal Research, https://law.counselstack.com/opinion/obrien-v-brown-ill-1949.