United States v. Lieb

333 F. Supp. 424, 1971 U.S. Dist. LEXIS 11267
CourtDistrict Court, W.D. Texas
DecidedOctober 13, 1971
DocketCiv. A. SA71CA267
StatusPublished
Cited by6 cases

This text of 333 F. Supp. 424 (United States v. Lieb) is published on Counsel Stack Legal Research, covering District Court, W.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Lieb, 333 F. Supp. 424, 1971 U.S. Dist. LEXIS 11267 (W.D. Tex. 1971).

Opinion

*425 SPEARS, District Judge:

The government, in asking injunctive relief, claims that defendant violated Executive Order No. 11615, 1 and the regulations promulgated pursuant thereto, which imposed a ninety day stabiliza *426 tion period on prices, rents, wages, and salaries, effective August 15, 1971. The Court agrees with the government’s position and has granted the injunction sought. This memorandum shall constitute the findings of fact and conclusions of law. See Rule 52(a) F.R.Civ.P.

Defendant, the owner of the Antonian Apartments, a 104 unit complex in San Antonio, Texas, on April 1, 1971 raised the monthly rental on all newly rented apartments by $10.00; however, apartments which had been rented prior thereto continued to be rented at the rate charged before that date.

On July 28, 1971, and again on August 26, 1971, a number of occupants of the Antonian Apartments, who had rented their apartments prior to April 1, 1971, were notified by letter that their rental rates would be raised $10.00 per month on September 1, 1971, in accordance with the rental schedule that had previously been imposed on new occupants. The raise became effective on the date indicated, which was fifteen days after the stabilization period began, and the increased rent was still being charged on the date of the hearing herein. No exemption, exception, or adjustment, within the purview of existing regulations, was sought by the defendant.

The defendant’s complex is comprised of four classes of apartments: Class A, Class B, Class C, and Class D. Each apartment within one of the classes is substantially the same as all others within the class. The rental schedules imposed upon newly rented apartments before and after April 1, 1971, were as follows:

Before April 1 After April 1
Class A $155 $165
Class B $165 $175
Class C $195 $205
Class D $220 $230

On August 14, 1971, the day before the “Price-Wage Freeze”, defendant had rented the following percentages of his apartments at the April, 1971 rental rate:

Class A 12.5%
Class B 29.1%
Class C 25.0%
Class D 25.0%

*427 This Court has jurisdiction under the provisions of Section 205 of the Economic Stabilization Act of 1970, 2 as well as under Title 28 U.S.C. § 1345.

The defendant does not contest the validity of the Executive Order itself, nor does he question the authority of Con-' gress to delegate powers to the President under the Economic Stabilization Act of 1970, as amended. His contention is that since more than 10% of his actual transactions involving the higher rentals in each class of apartments occurred during the nearest preceding 30-day period, 3 the Order does not preclude him from bringing all rentals into conformity with rents on the apartments which were rented after April 1, 1971. On the other hand, the government says that defendant was prohibited from charging any more than he had charged for the same units during the base period. At issue, therefore, is the interpretation of the Act, the Executive Order, and the rules and regulations promulgated pursuant thereto.

Section 1(a) of the Executive Order reads as follows:

“Prices, rents, wages, and salaries shall be stabilized for a period of 90 days from the date hereof at levels not greater than the highest of those pertaining to a substantial volume of actual transactions by each individual, business, firm or other entity of any kind during the 30-day period ending August 14, 1971, for like or similar commodities or services. If no transactions occurred in that period, the ceiling will be the highest price, rent, salary or wage in the nearest preceding 30-day period in which transactions did occur. No person shall charge, assess, or receive, directly or indirectly in any transaction prices or rents in any form higher than those permitted hereunder, and no person shall, directly or indirectly, pay or agree to pay in any transaction wages or salaries in any form, or to use any means to obtain payment of wages and salaries in any form, higher than those permitted hereunder, whether by retroactive increase or otherwise.”

Defendant insists that he was merely bringing all rental charges after September 1 up to a level no greater “than the highest of those pertaining to a substantial volume of actual transactions * * * during the 30-day period ending August 14, 1971,” and that he is being denied the benefit of the “substantial volume of actual transactions” treatment referred to in the President’s Order. In this connection, he argues that the Cost of Living Council was without authority to initiate the regulation 4 which states:

Rents. The ceiling rent for commercial property, housing accommodations, hotels, motels, rooming houses, farms, and other establishments, together with all privileges, services, furnishings, furniture, equipment, facilities, improvements, and any other privileges connected with the use thereof shall be no greater than the highest rent charged for the same property during the base period. If the property was not rented during the base period, the ceiling price shall be no higher than the highest rent charged during the nearest preceding 30-day period prior to the base period. If the property was never previously rented, the ceiling rent shall be no higher than the ceiling rent charged for similar or comparable property in the locality or area. (Emphasis supplied.)

*428 The defendant’s position seems to be that Section 1(a) of the Executive Order restricts the Cost of Living Council to the precise language contained therein, and that the Council therefore, had no authority to dilute the “substantial volume of actual transactions” phrase used by the President. However, defendant overlooks the fact that in the same Order, which was entered as an emergency measure, the President has not only delegated to the Council all of the powers 4.1 (except as hereinafter stated) conferred on him by the Economic Stabilization Act of 1970, but he has empowered the Council to prescribe definitions for any terms used, to make exceptions, to grant exemptions, to issue regulations and orders, and to take such other actions as it may determine necessary and appropriate to carry out the purpose of the Order, 5 which was “to stabilize the economy, reduce inflation, and minimize unemployment.” 6

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Cite This Page — Counsel Stack

Bluebook (online)
333 F. Supp. 424, 1971 U.S. Dist. LEXIS 11267, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-lieb-txwd-1971.