Gilbert v. Sargent
Gilbert v. Sargent
Opinion of the Court
This is an appeal from a decree of the lower court dismissing appellant’s bill for an injunction against the enforcement of certain orders of the rent commission of the District of Columbia.
On November 1,1921, appellant as plaintiff filed a bill in equity in the lower court against the rent commission and certain tenants of plaintiff as defendants, alleging that since April 1,1921, he had been and still was the owner in fee simple of a certain apartment house situate within the District; that he acquired the property subject to various outstanding leases held by defendants, which theretofore had been executed by and in the name of one George W. Linkins, whom
The defendants answered, admitting the filing of the complaints and the rent commission’s determinations thereon, and alleging that the latter were fair and reasonable, and were binding upon plaintiff under the provisions of the Rents Aet. On November 29, 1921, a temporary restraining order was entered by the lower court, enjoining defendants from enforcing the order of the rent commission pending the suit. On May 22, 1923, the lower court dissolved the temporary injunction, and referred the cause to the auditor, to ascertain and report the amounts of the excess payments made by the defendants as tenants, over and above the amounts fixed by the rent commission. The auditor thereupon reported to the court the amounts of such excess payments made between the time of filing the complaints and June 1,1923, by which time the various complaining tenants had vacated the apartments.
Afterwards, to wit, on April 25, 1923, the issues came to trial before the court; the Attorney General of the United States being substituted for the rent commission as defendant. It was conceded in open court that at the hearing before the rent commission notice was given by Linkins that he was merely the rental agent for plaintiff, who was the owner of the property; that- Linkins objected against proceeding without notice to plaintiff as owner; that the objection was overruled by the rent commission, and the determinations made without notice to plaintiff. The plaintiff also tendered proof as to the value of the property at the times in question, to show that the return under the reduced rates would be less than 4 per cent, per annum thereon, and accordingly confiscatory. The lower court rejected the evidence as incompetent. • The plaintiff also tendered evidence to show that there was no emergency existing in the District of Columbia at the times in question, and that the aet of Congress creating the rent commission was not operative at the date of the determinations. This evidence also was rejected. The court then ratified and confirmed the auditor’s report, awarded execution to defendants for the excess payments, and finally dismissed plaintiff’s bill. • The present appeal was then taken.
We think that the controlling question herein was answered by the Supreme Court of the United States in Chastleton Corporation v. Sinclair, 264 U. S. 543, 44 S. Ct. 405, 68 L. Ed. 841. In that ease, as in this, it was argued that the only remedy permitted the owner by the Rents Aet was by way of appeal from the commission’s determinations, and that equity would refuse relief because of the right to appeal at law. This argument was answered in the following language:
“It is objected that the plaintiffs have an adequate remedy at law by way of appeal. But, apart from the fact that it is doubtful whether the Chastleton Corporation and Hahn were not entitled to treat the order as a nullity so far as they were concerned, it is open to equal doubt whether, in a proceeding under the law, they could assail its validity. There are many tenants to be dealt with. However looked at, a bill in equity is the natural and best way of settling the parties’ rights.”
It follows accordingly that the plaintiff below was entitled to bring his suit in equity, and therefore entitled to submit evidence showing that the rentals fixed by the commission were unfair, unreasonable, and confiscatory. The rejection of such evidence was error. Similarly the plaintiff was entitled to submit evidence to show that the
“Here, however, it is material to know the condition of Washington at different dates in the past. Obviously the facts should be accurately ascertained and carefully weighed, and this can be done more conveniently in the Supreme Court of the District than here. The evidence should be preserved, so that, if necessary, it can be considered by this court.”
It was contended by plaintiff below that the failure of the rent. commission to notify him of the filing of the complaints was a jurisdictional defect, which rendered the determinations void. Under the ruling upon this point in Tebbs v. Union Realty Corporation, 52 App. D. C. 347, 286 F. 1011, and Chastleton Corporation v. Sinclair, 53 App. D. C. 373, 290 F. 348, we disagree with this contention. Moreover, we are of the opinion that the lower court did not err in substituting the Attorney General for the rent commission as a party defendant in the suit. Section 4, Aet approved August 24, 1921; section 17, Aet of May 22,1922.
The decree of the lower court is reversed, with costs, and the cause is remanded, for further proceedings not inconsistent herewith.
Reference
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- GILBERT v. SARGENT, Atty. Gen.
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