Woods v. McCord

175 F.2d 919, 1949 U.S. App. LEXIS 2460
CourtCourt of Appeals for the Ninth Circuit
DecidedJune 22, 1949
Docket12039
StatusPublished
Cited by24 cases

This text of 175 F.2d 919 (Woods v. McCord) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Woods v. McCord, 175 F.2d 919, 1949 U.S. App. LEXIS 2460 (9th Cir. 1949).

Opinion

BONE, Circuit Judge.

This action was instituted by appellant Woods, as Housing Expediter, against ap-pellees John McCord ánd Florence Mc-Cdrd under Section 205(a) and (e) of the Emergency Price Control Act of 1942, as amended, 50 U.S.C.A.Appendix, § 901 et seq., and the applicable rent regulations issued by the Administrator (now Expediter) pursuant to Section 2 of that Act, to recover statutory damages for excessive ■rents or an order of restitution of the alleged excessive rents in the amount of $5,530.72. From an adverse judgment in the lower court, "the Plousing Expediter appeals.

Appellees were lessees and landlords of the Belmont Apartment Hotel located in Los Angeles, California, during the period of Federal rent regulation until April 1, 1946. . Subsequent to September 1, 1943, active control was in the hands of a manager who lived on the premises. The gravamen of the. charge against appellees is that they obtained rents computed on a hotel or transient' basis for housing accommodations which could legally only be rented by the month. The difference between the two amounts is the sum of the alleged overcharges.

Maximum legal rents for particular accommodations depend upon the rents actually being charged on the “freeze” or maximum rent date. 1 The Belmont Apartment Flotel comprised a total of 85 rental units, 79 of which contained bath and kitchen facilities. For each of the units there was a daily and weekly (transient or hotel) rate, and a monthly lesser rate. On the freeze date, March 1, 1942, some of the units were being rented upon the transient basis but the rental units herein involved were being rented upon a monthly basis and were so rented during the period of the alleged overcharges.

: On or about December 15, 1942, appellees, undertook to file a registration statement of their réntal practices. They state 'that upon applying for a registration form at the Office of Price Administration in Los Angeles, they informed the clerk that they had an “Apartment Hotel” and performed hotel services such as maid and telephone services and preferred to rent transiently.. The clerk then gave them the Hotel and Rooming House form which they filled out and returned. They then- charged the-higher transient rate even though, as later-admitted in a subsequent registration, the rent actually being charged on the freeze date for the units here involved was on the lower monthly basis. 2

In July of 1944, appellees decided to rent the apartment then occupied by the manager and by letter sought from the Office-of Price Administration permission to rent such apartment on a transient basis. Following the receipt of this request, appellant’s predecessor office began lengthy and. unsuccessful efforts to elicit information, from appellees concerning their rental practices during the base period, i. e., maximum rent date, in order to determine the propriety of their registration. The exchange of letters between the Office of Price Administration and appellee began in October, 1944. Some of the Government requests-for information went unanswered and the- *921 others were answered unsatisfactorily with much of the information incomplete. 3 A subpoena duces tecum was finally issued to obtain appellees’ records, and in August, 1945 the Area Rent Director issued a formal order denying appellees’ request for ■hotel registration of the Belmont.

Although no review of this order was ever undertaken, appellees refused to comply therewith until an injunction suit was brought in the State court to compel proper re-registration. Pursuant to this action, appellees filed in February, 1946 a reregistration of the premises whioh stated that the -rental units here involved were being rented on the freeze date on a monthly basis. Appellees sold their said lease on April 1, 1946.

In the answer to the Government’s pretrial request for admissions, appellees admitted that as to all apartments listed in the complaint excepting Nos. 210, 304, 407, 510 and 511, the amounts alleged in the Government complaint as maximum monthly rent, rents charged, amounts of overcharges, periods of time during which overcharges were made, etc. were correct. As to the excepted rental units, appellees alleged that any overcharges had been settled out of court. In view of these admissions and the fact that appellees admitted that the rental being received for the apartments on the freeze date was on a monthly ha-sis, it is extremely difficult to understand the basis of the finding of the trial court that there were no overcharges. We agree with Government counsel that the overcharges were admitted and that appellees relied upon other defenses.

Section 205(e) -of the Act permits the person who has been overcharged to bring an action for treble damages within one year of the date of the overcharge, and if the action has not been commenced within 30 days or if the person overcharged is unable for any -reason to bring the action, the Administrator (Expediter) may do so within the one year period.

The one year limitation does not apply to Sections 205(a) which permits suit by the Administrator for an injunction, restraining order, or order enforcing compliance with the Act. Porter v. Warner Holding Co., 1946, 328 U.S. 395, 66 S.Ct. 1086, 90 L.Ed. 1332. The Court there held that this section permitted an order restoring to the tenant the amount that he was illegally overcharged. This was on the basis of either (1) an equitable adjunct to an injunction, i. e., under the inherent equity powers of the court, or (2) appropriate to enforce compliance with the Act. It is the view of the Supreme Court and our own that nothing is more clearly a part of equity than “the recovery of that which has been illegally acquired and which has given rise to the necessity for injunctive relief.” 4 Such is the very essence of justice.

We are not concerned with the portion of the complaint asking treble damages under Section 205(e) a-s it was dismissed ■as not being brought within the one year period, and there is no appeal from the dismissal. 5

The trial court apparently felt that •although the one year period did not apply -to actions for restitution, and the doctrine of laches did not for obvious reasons apply to Government agencies in their efforts to enforce Congressional policy, nonetheless (since restitution was primarily for the benefit of the tenants) the doctrine of laches was apposite, and that since the normal period of laches, as an equitable concept, *922 was co-existent with cognate statutes of limitations, a one year equitable limitation should be applied to actions for restitution. With this we do not agree. It is merely an indirect application of that which cannot be done directly.

Further, the action to compel restitution is not solely for the redress of private wrongs; it is primarily concerned with the vindication of public rights. “That to require restitution of overcharges tends to enforce the law prohibiting them no one would deny.

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Bluebook (online)
175 F.2d 919, 1949 U.S. App. LEXIS 2460, Counsel Stack Legal Research, https://law.counselstack.com/opinion/woods-v-mccord-ca9-1949.