Bowles v. Sago
| Citation | 65 F. Supp. 178 |
| Decision Date | 04 April 1946 |
| Docket Number | No. 5049.,5049. |
| Parties | BOWLES, Adm'r, OPA, v. SAGO et al. |
| Court | U.S. District Court — Western District of Pennsylvania |
Thomas F. Garrahan and Robert B. Greer, both of Pittsburgh, Pa., for plaintiff.
Morris Feldstein, of Pittsburgh, Pa., for defendants.
This is a civil action brought by the Administrator of the Office of Price Administration against the defendants, Edward Sago and Julia Sago, under and pursuant to the provisions of section 205(a) of the Emergency Price Control Act of 1942, as amended, 50 U.S.C.A.Appendix, § 901 et seq.
It was the contention of the plaintiff that the defendants violated section 4(a) of the Emergency Price Control Act of 1942, as amended by the Stabilization Extension Act of 1944, 50 U.S.C.A.Appendix, § 901 et seq., in that the defendants charged rents in excess of the Maximum Rent Regulation (8 Fed.Reg. 14663) as provided for housing accommodations in the Pittsburgh Defense-Rental Area.
It is further contended by the plaintiff that the defendants are the owners of housing accommodations situate at 316 32nd Street, McKeesport, Penn., which comprise two rental units known as the right side and left side.
In connection with the right side of said dwelling unit, the legal maximum rent on March 1, 1942, was $20 per month, and the defendants demanded and received $33 per month rent for said housing accommodation from October 5, 1944, to and including July 6, 1945, or monthly overcharges were made in the amount of $13 for a period of ten months, or a total overcharge of $130.
In connection with the left side of said dwelling unit, the legal maximum rent on March 1, 1942, was $20 per month, and the defendants demanded and received $33 per month rent for said housing accommodation from October 6, 1944, to and including June 6, 1945, or monthly overcharges were made in the amount of $13 for a period of nine months, or a total overcharge of $117.
The plaintiff claims that the defendants are liable to the Administrator, on behalf of the United States, for the amount of $741, the same being three times the amount of said overcharge, pursuant to section 205(e) of said Act, together with the costs of said proceeding.
The plaintiff also demands injunctive relief against the defendants, their agents, servants, employees, attorneys, and all persons acting directly or indirectly in their behalf, and which violation of the regulations pertaining to Rent Regulation for Housing would be restrained.
This matter was presented for hearing before the Court without a jury, and each of the parties to said proceeding has filed Suggested Findings of Fact and Conclusions of Law.
The Court, after hearing and consideration, makes the following Findings of Fact and Conclusions of Law:
Findings of Fact
1. The plaintiff is the duly appointed and qualified Administrator of the Office of Price Administration.
2. This action is before the Court pursuant to the provisions of section 205(a) of the Emergency Price Control Act of 1942, as amended, 50 U.S.C.A.Appendix, § 901 et seq., and jurisdiction is conferred upon this Court by virtue of section 205 (c).
3. Rent Regulation section 2(b) of the Act (8 Fed.Reg. 14663) was in effect for housing in the Pittsburgh Defense-Rental Area during the period from October 5, 1944, to and including July 6, 1945.
4. That the legal maximum rent for the housing accommodation owned by the defendants, situate at 316 32nd Street, McKeesport, Penn., known as the right side of said dwelling unit, was $20 per month, and that the charge made by the defendants for the rental of said premises was $13 per month in excess of the legal maximum rent, and that said charge was made for a period of ten months, or a total overcharge of $130.
5. That the legal maximum rent for the housing accommodation owned by the defendants, situate at 316 32nd Street, McKeesport, Penn., known as the left side of said dwelling unit, was $20 per month, and that the charge made by the defendants for the rental of said premises was $13 per month in excess of the legal maximum rent, and that said charge was made for a period of nine months, or a total overcharge of $117.
6. That the facts and circumstances produced at the time of the hearing of the civil action clearly establish that the acts of the defendants were not willful but were the result of failure to exercise practicable precautions to comply with the Rent Regulation.
1. The Court has jurisdiction of the within proceeding pursuant to the provisions of section 205(a) of the Emergency Price Control Act of 1942, as amended, 50 U.S.C.A.Appendix, § 901 et seq.
2. The Court has jurisdiction over the parties hereto by virtue of section 205(c) of the Act.
3. The defendants, Edward Sago and Julia Sago, have violated the provisions of section 4(a) of the Emergency Price Control Act of 1942, as amended by the Stabilization Extension Act of 1944, 50 U.S.C.A. Appendix, § 901 et seq., and, more particularly, Rent Regulation for Housing in the Pittsburgh Defense-Rental Area (8 Fed.Reg. 14663).
4. The defendants, Edward Sago and Julia Sago, demanded and received excess rental for the right side of a dwelling unit in the amount of $13 per month, for the period from October 5, 1944, to and including July 6, 1945, or made a total overcharge of $130 for the rental of said premises.
5. The defendants, Edward Sago and Julia Sago, demanded and received excess rental for the left side of a dwelling unit in the amount of $13 per month, for the period from October 6, 1944, to and including June 6, 1945, or made a total overcharge of $117 for the rental of said premises.
6. The actions of the defendants in demanding and receiving excess rental for the premises were not willful.
7. The actions of the defendants in demanding and receiving excess rental for the premises were the result of failure to take practicable precautions.
8. The plaintiff is entitled to recovery and judgment is, therefore, entered in favor of the plaintiff and against the defendants, Edward Sago and Julia Sago, in the amount of $494 together with the costs of said proceeding.
9. The plaintiff is entitled to injunctive relief as prayed for against the defendants.
In this civil action brought by the Administrator of the Office of Price Administration against the defendants, Edward Sago and Julia Sago, under the provisions of the Emergency Price Control Act of 1942, as amended, 50 U.S.C.A.Appendix, § 901 et seq., it appears that the defendants purchased certain real estate from Luigi Theodori on May 13, 1944, and said dwelling comprised four rooms and bath on each side together with furnace and garage. That at the time of the purchase, there were tenants in each of the dwelling units; one tenant remaining in the property for approximately four weeks after the purchase, and the other tenant for seven or eight weeks.
That at the time of the purchase, the defendants made inquiry of Luigi Theodori as to whether or not the property had been registered with the Rental Division of the Office of Price Administration, and Mr. Theodori informed them that he didn't know what the Office of Price Administration was and that it was his property. The former owner informed the defendants that the tenants paid what ever they felt like paying, and the defendants in this proceeding made no inquiry of the tenants as to what rental they were paying. That after the tenants removed from the premises, the defendants made numerous repairs to the property at a cost of approximately $1,000. The tenants of the former owner delivered possession to the defendants in May or June, 1944, and the premises were first rented by the defendants in October, 1944.
That before the tenants of the defendants moved into the rental units, one of the defendants, Julia Sago, went to the Office of Price Administration at McKeesport, Penn., to make inquiry as to what rental should be charged and was informed that it would be necessary for the defendants to file their application for registration in order that the fair rental value could be fixed if the units had not been rented prior to October 1, 1944. It further appears that one of the tenants of the former owner paid the defendants the amount of $20 for the period of time that said tenant occupied the one unit, and the other tenant paid no rental to the defendants. There appears to be no question that neither of the units was rented for the period from sometime in June, 1944, to October, 1944.
Although the rental had never been fixed for either of the dwelling units, since the tenants were anxious to have possession, the defendants permitted the tenants to occupy said dwelling units without having the rental value fixed. Relying on an oral statement made by an employee at the McKeesport Office of Price Administration that on the basis of the facts orally presented by the defendants, the units would warrant a rental charge of $35, the defendants...
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