Garratón Romaguera v. Peñagarícano
Garratón Romaguera v. Peñagarícano
Opinion of the Court
Appellants, owners of a three-story building located at 352 Fortaleza Street of this Capital, had leased on October 1, 1942 three business premises on the main floor of the building with an area of 2,208.86 square feet to Angélica Haddock, Manuel Pumares and Winthrop Chemical Co., for monthly rentals of $70, $80 and $87. The rentals for the latter two premises were subsequently readjusted increasing them to $96 and $46.25, respectively. The total rental received was therefore $215.25. Improvements and repair works were subsequently made and a certain additional space of 1,399.30 square feet was included, so that the area leased on the main floor was 3,608.16 square feet.
In October 1955 Telecentro Eléctrico, Inc., occupied the entire main floor upon payment of a monthly rental of $500 for a period of 16 months, namely, until January 1957. On the following August the lessee corporation complained before the Economic Stabilization Office that appellants were charging an overprice. After the proper investigation was conducted and an administrative hearing held with the appearance of the interested parties, on July 31, 1958 the Administrator sent a notice “on the rent which we propose to fix,” stating that pursuant to § 6 of the Reasonable Rents Act, 17 L.P.R.A. § 186, it proposed to fix a maximum rental of $363.30 a month, prospectively. The rental includes water service, to be paid by the landlord. Premises of 3,608.16 square feet, based on “the fact that the present rental is higher than that for similar premises on October 1, 1942. The improvements have been taken into account.” The interested parties having failed to make any objection, an order was issued on November 12, 1958 fixing the maximum rental at the said $363.30.
An administrative hearing was held on January 26, 1959 in connection with the overcharge, and on April 20 a demand for reimbursement was issued for the sum of $136.70 a
Paragraph 8 of § 6 of the Reasonable Rents Act, 17 L.P.R.A. § 186, provides:
“In cases where the Administrator adjusts the rent which was being paid .prior to the date of the taking effect of this Act or issues a final order on any rent, fixing in lieu thereof the reasonable rent as herein determined, the tenant shall be required to pay only the basic rent or the reasonable rent fixed for the purpose, but he shall not be entitled to any reimbursement or claim for the payment made in excess of the reasonable rent prior to the date on which the latter may be fixed, except in those cases where by express provision of this Act the rent automatically adjusts to the amount prevailing on October 1, 1942, and except in such cases where the Administrator issues a temporary order increasing or fixing the maximum rent until the case is finally decided; Provided, That the rent so increased or fixed shall be subject to reimbursement to the tenant as to the amount in excess of the maximum rent that may be fixed by the final order.”
A mere reading of this statutory provision shows that whenever the Administrator fixes a reasonable rent lower than that which the tenant has been, paying, the latter is not entitled to reimbursement of the amount overpaid unless (a) the rent has been adjusted, according to the express statutory provision, to the amount prevailing on October 1, 1942, namely, the basic rent; and (b) the Administrator has issued a temporary order increasing or fixing the maximum rent until the case is finally decided. However, such
In the present case the Administrator did not issue any temporary order and, hence, the demand for reimbursement may be justified only if it is established that it accrues from an automatic adjustment of the basic rent.
The judgment rendered by the Superior Court, San Juan Part, on February 2, 1961, will be reversed and another rendered instead setting aside the order of reimbursement issued on February 17, 1960 by the Economic Stabilization Administrator in case VPC-2248.
For a review of the legislation on the Administrator’s power to fix lease rental as of the enactment of the Reasonable Rents Act, see Mejías v. Superior Ct.; Nadal et al., Ints., 82 P.R.R. 546 (1961). Cf. Mejías, Adm’r v. Superior Court, 82 P.R.R. 708 (1961).
Case-law data current through December 31, 2025. Source: CourtListener bulk data.