Medina v. Hato Rey Realty Co.
Medina v. Hato Rey Realty Co.
Opinion of the Court
delivered the opinion of the Court.
The question for decision in this appeal is simple, to wit: whether an insular court, ignoring an order issued by the Office of the Housing Expediter under the Federal Housing and Rent Act of 1947, as amended, fixing the maximum rent on a residence, is empowered to dismiss a complaint for triple damages instituted under § 205 of the aforesaid Act, on the ground that, in its judgment, said office lacked jurisdiction to issue the order. These are the findings of fact of the District Court of San Juan, according to the evidence introduced at the hearing, insofar as pertinent to the question involved here: that the plaintiff, Alejandro Medina, leased from the defendant, Hato Rey Realty Co., Inc., in December 1945, certain premises in building No. 17 in Guayama Street, Hato Rey, at a rental of $50 monthly; that in the bond given to secure the payment of the rentals, the plaintiff set forth that the premises would be used for a photographic laboratory;
Pursuant to these facts the court a quo arrived at the conclusion of law that, since the defendant had leased the premises for commercial purposes, neither § 204(6) of the Federal Housing and Rent Act of 1947, as amended, which prohibits the demanding, accepting, or receiving of any rents greater than the maximum rent for the use or occupancy of “any controlled housing accommodations,”
“In our judgment, the administrative remedies established in the regulations to review such orders issued by the Office of the Housing Expediter must be exhausted where said orders refer to properties subject to the control of the aforesaid Federal Agency. In other words, we think that when the*599 Housing Expediter issues an order in connection with a property which is not contemplated by the provisions of the Federal Housing and Rent Act, the person affected thereby is not bound to exhaust those administrative remedies simply because it is not within its authority to fix the maximum rent to a property which has not been rented or offered for rent for dwelling purposes.
“In order that plaintiff’s action may prosper under § 205 of ‘The Housing and Rent Act of 1947, as Amended’ it must prove that the defendant charged him rents in excess of those which he could legally charge him, and we can not say that the rents charged by the defendant are illegal even in view of the order of the Housing Expediter reducing them, because the rented premises were not under his control, inasmuch as they do not fall within the definition of ‘housing accommodations.’ ” (Italics ours.)
The appellant assigns in this appeal as the only error that which he believes the lower court committed in dismissing the complaint on the preceding grounds. In our judgment he is correct.
It is not incumbent on insular courts to decide whether an order issued by the Office of the Housing Expediter under the authority of the Federal Housing and Rent Act when the latter was applicable to dwellings in Puerto Rico, was entered with or without jurisdiction over premises rented, according to defendant’s contention, for commercial purposes when said agency determined that they were also being used for dwelling purposes and the latter predominated. The case law is unanimous to the effect that the proceedings established and the administrative remedies afforded by the Federal Housing and Rent Act and by the Regulations adopted by the Housing Expediter are of an exclusive nature and must be complied with and exhausted. Bowles v. Willingham, 321 U. S. 503; Macauley v. Waterman S. S. Corp., 327 U. S. 540; Myers v. Bethlehem Corp., 303 U. S. 41; Yakus v. United States, 321 U. S. 414; Bourjois, Inc. v. Chapman, 301 U. S. 183; Independent Warehouses v.
We shall not stop to summarize the facts and conclusions reached in these cases.
In the order issued by the Office of the Housing Expediter on May 10, 1948 the defendant was apprised that it should refund to the plaintiff any rents collected in excess of the $30 provided in the order “within 30 days from the date this Order is issued unless the refund is stayed in
The judgment appealed from will be reversed and another rendered ordering the defendant, Hato Rey Realty Co., Inc., to pay to the plaintiff, Alejandro Medina, the sum of $600 plus legal interest from the filing of the complaint, with costs and $100 as attorney’s fees.
It appears from the document that this was not set forth in the body of the bond, but rather on the margin, beyond the surety’s signature.
The evidence showed, even though the court did not make any conclusion to that effect, that defendant’s President and Manager, Mr. Francisco Grovas, knew that plaintiff had devoted part of the premises as living quarters for his family.
In view of this decision, the Insular Office of Rent Control considered the case closed with respect to the petition addressed to it by the plamtiff-
The order recites:
“The Rent Director, after consideration of all the evidence in this matter, has determined that the Maximum Rent for the above-described housing accommodations should be decreased on the grounds stated in Section (s) 5-c-l of the Rent Regulation, and further for the reason (s) stated in Section (s) 4-c of the Rent Regulation, the Maximum Rent so decreased and determined by this Order shall be effective from July 1, 1947.
“Therefore, it is ordered that the Maximum Rent for the above-described accommodations be, and it hereby is, decreased from $50 per month, to $30 per month, effective from July 1, 1947. No rent in excess of $30 (maximum rent established by this order) may be received or demanded.
“Any rent collected from the effective date of this Order in excess*598 of the amount provided in this Order shall be refunded to the tenant within 30 days from the date this Order is issued unless the refund is stayed in accordance with the provisions of Section 1300.209 or 1300.217 of Revised Procedural Regulation No. 3.
“This Order is now in effect and will remain in effect until changed by the Office of Rent Control.”
See footnote 2.
Section 202(6) of said Act defines the term “housing accommodations” as follows:
“The term ‘housing accommodations’ means any building, structure, or part thereof, or land’ appurtenant thereto, or any other real or personal property rented or offered for rent for living or dwelling purposes (including houses, apartments, rooming-or boarding-house accommodations, and other properties used for living or dwelling purposes) together with all privileges, services, furnishings, furniture, and facilities connected with the use or occupancy of such property.”
The cases cited by the lower court and by the appellee are clearly distinguishable. The question raised in the instant case was not involved in any of them.
Pursuant to § 205 of the Federal Housing and Rent Act, attorney’s fees are mandatory, the reasonable amount thereof being left to judicial discretion.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.