Bowles v. Ruppel
Bowles v. Ruppel
Opinion of the Court
The Price Administrator seeks damages and an injunction for certain alleged violations of the Emergency Price Control Act of 1942, as amended, 50 U.S.C.A.Appendix, § 901 et seq.. The first count alleges defendant has failed to file a registration statement in violation of Section 7 of the Regulation (8 F.R. 7322); that defendant has failed to file change of tenancy notices; and has demanded and received rent other than in the course of trade or business of housing accommodations in excess of rents established by the Regulation.
Evidence adduced at the trial and answers to interrogatories disclose certain facts which are beyond dispute. Although the capacity in which defendant acted is in dispute, it was nevertheless established that defendant did not file a registration statement for a certain property and that she also did not file change of tenancy forms
At trial, defendant was called as one of plaintiff’s witnesses. Before testifying, defendant’s counsel file'd a claim of immunity under 50 U.S.C.A.Appendix, § 922. This statute, which is the Emergency Price Control Act, adopts by reference the language of 49 U.S.C.A. § 46.
At the close of plaintiff’s case, defendant moved to dismiss, mainly on the theory that plaintiff, by examining defendant after her claim of immunity, is estopped not only from prosecuting defendant criminally but also from prosecuting any action involving a penalty or forfeiture; and that the present action is obviously penal in nature. After hearing the arguments of counsel, the court suggested that the defendant proceed with her defense without prejudice to the ultimate disposition of her motion to dismiss. All counsel agreed to this procedure. Since, at the conclusion of the whole case, defendant asked for judgment, for reasons in addition to those stated in her motion to dismiss, I prefer not to consider the motion to dismiss alone, but to treat it, together with the other reasons, as to whether defendant should have judgment. Defendant, then, seeks judgment on all grounds because (1) plaintiff is estopped from proceeding in this action by reason of his examination of défendant after notice or claim of immunity; (2) defendant is not a “landlord” within the meaning of the word as used in the Regulation; and (3) with respect to the King Charles Avenue property, a seasonal rent was charged, which was permitted and justified under the registration statement (which defendant filed) and under the Regulation. .
1. In the view which I take of the case it is unnecessary to consider the interesting and difficult question raised by the first reason assigned for dismissal.
2. Defendant is not a “landlord” within the meaning of the word as used in the Rent Regulation. It appeared from the trial, and I now find, that defendant, along
While I am not bound by OPA’s own interpretation of its Regulation, that interpretation clearly reenforces my opinion as to the proper interpretation to be given this Regulation. I think “agent,” as used in the Regulation, means a general or managing agent of the landlord, such as a landlord incapable of taking care of his own affairs would be required to have or such as a landlord who did not wish to be bothered with business details about his properties would have. I do not think it means a broker or casual agent, who merely brings a prospective tenant and landlord together. In the case of the broker or casual agent, his functions are completed when the parties sign an agreement; as a broker he has no further duties.
Moreover, defendant, according to agency law, is not an agent, either general or special, but is simply a broker. It is a fundamental rule of agency that an agent is a fiduciary and, as such, has fiduciary obligations to his principal — to act for him and for him alone in a transaction. Restatement, Agency, Sec. 1. In the case at bar defendant acted for both landlord and tenant and, of course, could not be an agent of both. She was only a broker. I conclude that the word “agent” as used in the Regulation is used accurately; it means a general or managing agent in the strict sense.
3, Since my holding with respect to the capacity in which defendant acted is dis-positive of the case, I shall not pause to consider whether the registration statement with respect to the King Charles Avenue property permitted the rent which was, in fact, charged and collected.
Judgment should accordingly be entered for defendant.
The pertinent provisions of the Regulation are:
Sec. 7(d)(2). Registration Statement. “The landlord shall prepare the form known as ‘Registration Statement’ if the maximum rent for the dwelling unit is determined under any paragraph of section 4 other than paragraph (a), (g), or (h). The landlord shall prepare the Registration Statement in triplicate and shall send the three copies to the area rent office. The Administrator shall retain one copy on file, and he shall cause one copy to be delivered to the tenant and one copy, stamped to indicate that it is a correct copy of the original, to be returned to the landlord.”
Sec. 7(d)(3). Change in Tenancy. “Within five days after renting to a new tenant, the landlord shall file a form provided by the area rent office for this purpose. The landlord shall state the maximum rent for the dwelling unit, and he shall obtain the new tenant’s signature on this form.”
Sec. 13(8). “ ‘Landlord’ includes an owner, lessor, sublessor, assignee or other person receiving or entitled to receive rent for the use or occupaney of any housing accommodations, or an agent of any of the foregoing.”
The language of the latter statute is, in part, as follows:
“No person shall be excused from attending and testifying or from .producing books, papers, tariffs, contracts, agreements, .and documents before the Interstate Commerce Commission, or in obedience to the subpoena of the commission, whether such subpoena be signed or issued by one or more commissioners, or in any cause or proceeding, criminal or otherwise, based upon or growing out of any alleged violation of the preceding chapter on the ground or for the reason that the testimony or evidence, documentary or otherwise, required of him, may tend to crim-inate him or subject him to a penalty or forfeiture. But no person shall be prosecuted or subjected to any penalty or forfeiture for or on account of any transaction, matter or thing, concerning which he may testify, qr produce evidence, documentary or otherwise, before said commission, or in obedience to its subpoena, or the subpoena of either of them, or in any such case or proceeding * *
For one view on this question see Bowles v. Seitz, D.C., 62 F.Supp. 773.
Boston Sand & Gravel Co. v. United States, 49 S.Ct. 52, 278 U.S. 41, 73 L.Ed. 170.
Sec. 7 of the Regulation is concerned with the duties of a “landlord”. Sec. 8 of the Regulation provides:
“Inspection. Any person who rents or offers for rent or acts as a broker or agent for the rental of housing accommodations and any tenant shall permit such inspection of the accommodations by the Administrator as he may, from time to time, require.”
Sec. 8 is not without significance. The author of the Regulation must have known what a “broker” was. The failure to include the word “broker” within the definition of “landlord”, as it appears in Sec. 7, reenforces the interpretation made here of Sec. 7.
Reference
- Full Case Name
- BOWLES, Price Administrator v. RUPPEL
- Status
- Published