Woods v. Benson Hotel Corp.

81 F. Supp. 46, 1948 U.S. Dist. LEXIS 1820
CourtDistrict Court, D. Minnesota
DecidedSeptember 7, 1948
DocketCiv. No. 2628
StatusPublished
Cited by8 cases

This text of 81 F. Supp. 46 (Woods v. Benson Hotel Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Woods v. Benson Hotel Corp., 81 F. Supp. 46, 1948 U.S. Dist. LEXIS 1820 (mnd 1948).

Opinion

NORDBYE, Chief Judge.

These motions may be considered together, although it does appear that some of the stipulated facts upon which plaintiff bases his motion were only entered into “for the purpose of deciding whether to grant or deny each party’s motion for ’a preliminary injunction.” In any event, the admissions in the pleadings and the stipulated facts are the admitted basis for determining whether the injunction granted upon those factual grounds should now be set aside. A recital of some of the facts and circumstances which apparently caused the Court to grant the temporary injunction of January 21, 1948, and the facts and circumstances subsequent thereto, seems necessary. The question presented is whether the 190 units in the Hotel Leamington became decontrolled as of June 30, 1947. If so, the temporary injunction should be vacated. If not, defendant’s motion should be denied. If the temporary injunction is vacated, it follows that plaintiff’s motion for a summary judgment should be denied.

[48]*48This action was brought by the plaintiff to enjoin the defendant from charging and collecting over-ceiling rents for the use and occupancy of some 190 units in the Leamington Hotel, which is operated by the defendant. The action was brought under the Housing and Rent Act of 1947. Under Section 202(c) of that Act, “controlled housing accommodations” were defined, and the exception to control included “(1) those housing accommodations, in any establishment which is commonly known as a hotel in the community in which it is located, which are occupied by persons who are provided customary hotel services such as maid service, furnishing and laundering of linen, telephone and secretarial or desk service, use and upkeep of furniture and fixtures, and bellboy service.”

Section 204(d) provides: “The Housing Expediter is authorized to issue such regulations and orders, consistent with the provisions of this title, as he may deem necessary to carry out the provisions of this section and section 202(c).”

Regulations and interpretations were thereafter issued by the Expediter. The original Regulation issued to take effect July 1, 1947, followed the language of the Act. But this Regulation was amended on August 8, 1947, and the words “such as”, in referring to the customary hotel services, were changed to the word “including”. And, according to Housing and Rent Act Memorandum No. 21, issued September 5, 1947, the Expediter ruled that the tenants of a hotel, under the phrase “are provided” in the Act, must receive the services enumerated therein, or be entitled to receive them without additional charge.

According to the stipulated facts entered into herein, it appears that the Hotel Leamington has always been considered and known as a hotel in the community in which it is located and is operated for both transient and permanent guests; that as of June 30, 1947, which is the date for determining whether the services were provided as required for decontrol by the Act, it contained 338 units, of which 123 were transient and 215 were permanent. The transient units are all decontrolled, and of the 215 permanent units, 25 are concededly decontrolled, leaving 190 permanent units, which are the units here involved. Each of the 190 units consisted of one or more rooms, and in addition a kitchen and bath. They were occupied by permanent or resident guests, as distinguished from transient guests. Regarding the services specified in the Act, all units had bellboy service, telephone and secretarial or desk service; 66 had complete furniture service and 115 partial furniture service; 31 had the furnishing and laundering of linen; and 7 had maid service. Each of these services, though not used by a particular tenant, was available to him. In addition to these services, there were available to all tenants the customary hotel services, such as elevator service, baggage check room service, dining room service, meal service in rooms, cleaning and window washing service, taxi calling service, and maintenance of public parlors and washrooms. For the additional services and for the partial furniture service, there was no charge other than the basic rental charge for the unit.

The stipulation recites: “3. With respect to the 190 units mentioned in the complaint whose tenants on June 30, 1947, were actually using none or less than all of regular furniture service, linen service and maid service, each of these services then was and since has been available to the tenant in the sense that he might have requested and received it within a reasonable time if he agreed to pay the additional rental charge for it, but none of them was or has been available to the tenant if he would not agree to pay the additional charge for it.”

The material portions ot Paragraph 15 of defendant’s counterclaim are admitted in plaintiff’s reply. This paragraph reads as follows: “On and ever since June 30, 1947, all of the specified services have been available to all occupants of all units in the hotel in all of the following senses: (a) defendant has maintained the hotel’s service departments and a reserve of furniture and equipment in storage so that as high a percentage of occupants as experience showed might ever desire all of the services could request and promptly receive them; (b) any occupant upon first taking possession of his unit might have requested [49]*49and received all of the services; (c) any reasonable percentage of occupants who on June 30, 1947, were receiving less than all of the services might then have requested and received all of them without paying more than the then allowable rents; and (d) all of such occupants if they so desired could have received all of the services within a reasonable time.”

It was on this record, the Regulations, and the interpretations of the Act, that the Court granted a temporary injunction restraining the defendant from collecting rents higher than the» maximum set by the housing authority. An appeal was taken to the United States Court of Appeals, and on June 11, 1948, that court affirmed the trial court. Benson Hotel Corporation v. Woods, 8 Cir., 168 F.2d 694. The defendant contended upon the appeal that, 168 F.2d at page 696: “(1) the Act itself decontrolled the units; (2) the Regulation \yas invalid because inconsistent with and not authorized by the Act; (3) the interpretations and order by the office of the Housing Expediter were not valid because arbitrary and inconsistent with both the Act and the Regulation; (4) that since the granting of the injunction pendente lite in this case, both the Act and the Regulation promulgated thereunder have been amended in such manner as to indicate clearly what the law was at the time of the granting of the injunction, and that these amendments indicate that it is not necessary for decontrol of hotel units that all 6f the specified services be provided, and that services are provided if they are available.”

Without expressing any opinion as to the merits of the case, the Court, merely held that the granting of the injunction was within the discretion of the trial court and that that discretion had not been- exceeded in the granting of the temporary injunction, stating, 168 F.2d at page 697:

“ * * * Even though we should assume that the appellant’s contentions are correct, a question upon which we express no opinion, it would not follow that the court abused its discretion in granting the preliminary injunction appealed from.

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Bluebook (online)
81 F. Supp. 46, 1948 U.S. Dist. LEXIS 1820, Counsel Stack Legal Research, https://law.counselstack.com/opinion/woods-v-benson-hotel-corp-mnd-1948.