United States v. Mitchell

86 F. Supp. 453, 1949 U.S. Dist. LEXIS 2227
CourtDistrict Court, W.D. Missouri
DecidedOctober 20, 1949
DocketNo. 5672
StatusPublished
Cited by4 cases

This text of 86 F. Supp. 453 (United States v. Mitchell) is published on Counsel Stack Legal Research, covering District Court, W.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Mitchell, 86 F. Supp. 453, 1949 U.S. Dist. LEXIS 2227 (W.D. Mo. 1949).

Opinion

RIDGE, District Judge.

The question now before the Court is: Can the Housing Expediter recover in the name of the United States, under the Housing and Rent Act of 1949, triple damages, based on alleged overcharges of rent made in violation of the Housing and Rent Act of 1947, as amended, when all such violations are shown to have occurred prior to the effective date of the 1949 Act. (The power of the- Court, under proper showing, to decree restitution to tenants or grant injunctive relief, although issues raised in the pleadings, are not presently before the Court.)

The overcharges of rent here in dispute are alleged as having been exacted between February 6, 1945, and September 1, 1948; Thus, it is appafent that that portion of the overcharge alleged to have been exacted between February 6, 1945, and June 30, 1947, is governed by the Emergency Price Control Act of 1942, as Amended, 50 U.S.C.A. Appendix, § 901 et seq., and that portion alleged to have been exacted from July 1, 1947, to September 1, 1948, is governed by the Housing and Rent Act of 1947, as Amended, 50 U.S.C.A.Appendix, § 1881 et seq. We are now only concerned with overcharges alleged to have been exacted under the latter Act within one year from time of filing complaint.

The instant action was commenced April 21, 1949, twenty-one (21) days after the effective date of the Housing and Rent Act of 1949, Pub. L. 31, 81st Congr., 1st Sess., 63 Stat. 18.. The 1949 Act was amendatory to the Housing and Rent Act of 1947, supra. Under Section 205 of the 1947 Act, a right of action was given to “tenants” to recover triple damages of a landlord demanding,' accepting, or receiving any payment of rent' in excess of the maximum rent prescribed by that Act. 50 U.S.C.A.Appendix, § 1895. Section 204(a) of the 1949 Act made provisión inter alia that a landlord who demands, accepts, or receives any payment of, rent in excess of the maximum provided in the 1947 Act, should also “be liable to United States” for triple the amount of any such overcharge, “if the person from whom such payment is demanded, accepted, or received either fails to institute an action” therefor “within thirty days from the date of the occurrence of the violation” giving rise to such an action; and if the action is so brought by the United States, then the person from whom the overcharge was exacted is barred “from bringing an action for the same violation.” Sec. 204(a) Pub. L. 31, 81st Congr., 1st Sess., 63 Stat. 27.

It is defendant’s contention that the 1949 Amendment to the Housing and Rent Act of 1947 in the above respects operates prospectively only, and as a consequence the United States, under the above state of facts, has no right to maintain’ the instant action to recover treble the amount of the rental overcharges here claimed. Defendant premises his contention on the assertion [455]*455that by the 1949 Amendment a new right of action was created in favor of the United States to recover triple damages for overcharges of controlled rental housing accommodations; that there.is no manifestation in the 1949 Amendment from which it can be determined that Congress intended such provision of the 1949 Act to operate retrospectively; that to give retroactive effect to such amendment would be to take away a right of action which had already accrued and exclusively vested in tenants under the 1947 Act, in destruction of contractual rights between tenants and landlords, and would, therefore, deny due process of law and make the amendment, supra, unconstitutional.

Plaintiff’s contention is that Amendment of the Housing and Rent Act of 1947, in the above respects, by the Act of 1949, supra, was intended to be retrospective in effect and does not offend due process under the Fifth Amendment, since it does not create a wrong where none previously existed, but merely allows the United States to assert a remedy for a wrong already in existence.

In resolving the above contentions, we first dispose of the constitutional aspects that are there asserted to be involved. The Constitution of the United States does not in terms prohibit the enactment by Congress of retrospective laws unless they impair the obligations of contracts or partake of the character of ex post facto laws. Bernheimer v. Converse, 206 U. S. 516, 27 S.Ct. 755, 51 L.Ed. 1163. No ex post facto law is here involved, as Art. 1, Sec. 9 of the Constitution is only applicable to criminal prosecutions. Johannessen v. United States, 225 U.S. 227, 32 S.Ct. 613, 56 L.Ed. 1066. Consequently, any constitutional objection to giving retroactive effect to the Housing and Rent Act of 1949, as here considered, must be predicated upon a determination that to do so tends to impair the obligations of contracts and thus is violative of the due process clause of the Fifth Amendment. That no such consequence can possibly be involved is clearly apparent when it is called to mind that the rights of action here involved, whether existent in a tenant against a landlord under the 1947 Act, or in the United States against the landlord, under the 1949 Act, are statutory causes of action created by Act of Congress from which no vested property right may be asserted. Dable Grain Shovel Co. v. Flint, 137 U.S. 41, 11 S.Ct. 8, 34 L.Ed. 618. Having created such rights of action, Congress may at any time as in its wisdom it deems proper, abrogate, modify, or withdraw, in whole or in part, the rights of action so created. Kline v. Burke Const. Co., 260 U.S. 226, 43 S.Ct. 79, 67 L.Ed. 226, 24 A.L.R. 1077; Louisville & Nashville R. Co. v. Mottley, 219 U.S. 467, 31 S.Ct. 265, 55 L.Ed. 297, 34 L.R.A., N.S., 671. The impairment resulting from such action by Congress is not denial of due process or the taking of private vested rights without due compensation. Norman v. Baltimore & O. R. Co., 294 U.S. 240, 55 S.Ct. 407, 79 L.Ed. 885, 95 A.L.R. 1352. Consequently, no constitutional barrier here exists to giving retrospective consideration to the Housing and Rent Act of 1949.

A more delicate proposition for determination is whether Congress in the 1949 Act manifested an intention that the provisions thereof, now before the Court, should be given retroactive effect. Whether a given statute operates prospectively or retrospectively, is one of legislative intent. In determining such intent, the general rule is that unless there is a clear manifestation by the terms of the Act, or its legislative history, that it was to be retrospective in effect, it must be considered to operate prospectively only. Is there a manifestation in the 1949 Act that it was to operate-retrospectively ?

Rent control, as established under the Emergency Price Control Act of 1942, as Amended, and under the Housing and Rent Act of 1947, as Amended, is remedial legislation, the fundamental purpose of which was to prevent inflation. Hecht Co. v. Bowles, 321 U.S. 321, 64 S.Ct. 587, 88 L. Ed. 754.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Hernández Denton v. Flores
106 P.R. Dec. 787 (Supreme Court of Puerto Rico, 1978)
Rederiaktierbolaget v. Compania De Navegacion Anne, S. A.
139 F. Supp. 327 (District Court, Canal Zone, 1955)
Beatty v. United States
191 F.2d 317 (Eighth Circuit, 1951)
United States v. Gianoulis
183 F.2d 378 (Third Circuit, 1950)

Cite This Page — Counsel Stack

Bluebook (online)
86 F. Supp. 453, 1949 U.S. Dist. LEXIS 2227, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-mitchell-mowd-1949.