Jeansonne v. Marath

• Decision Date: 01 December 1952
• Docket Number: No. 19945,19945
• Citation: 61 So.2d 598
• Parties: JEANSONNE v. MARATH.
• Court: Court of Appeal of Louisiana — District of US

Page 598

61 So.2d 598

JEANSONNE v. MARATH.

No. 19945.

Court of Appeal of Louisiana, Orleans.

Dec. 1, 1952.

Gatlin & Hill, New Orleans, for plaintiff and appellee.

Charles E. Deichmann, New Orleans, for defendant and appellant.

McBRIDE, Judge.

On June 23, 1949 plaintiff rented from the defendant the dwelling known as 639 South White Street, in the City of New Orleans, under a verbal month-to-month lease, stipulating for a monthly rental of $25; plaintiff remained as tenant and paid all rent until September 23, 1950, on which date he moved from the premises. About four months after the termination of the relationship of landlord and tenant between the parties, the local Area Rent Director handed down an order reducing the monthly rent on the unit from $25 to $15; the order established the latter figure as the maximum or ceiling rent effective as of June 23, 1949, the date of the commencement of plaintiff's tenancy.

On the strength of the Director's order the plaintiff claims that he was overcharged $10 each month for the period of fifteen months he occupied the property, and by this suit he is seeking to recover treble the amount of the aggregate overcharge, plus a reasonable attorney's fee. The matter reaches us on the appeal of defendant from the judgment rendered below casting him for $450, together with attorney's fees of 15% thereof.

The record does not disclose whether 639 South White Street had ever been leased to anyone before plaintiff took over the premises as tenant. At any rate, it is shown by the testimony of the attorney and an inspector for the Federal Rent Office that defendant neglected to register the unit for the purpose of having a maximum or ceiling rent established. According to the testimony of the two witnesses from the Rent Office, it was incumbent upon defendant, under the provisions of regulations adopted by the Administrator, to register the premises within thirty days after his having rented them. We gather that in the latter part of 1950, subsequent to plaintiff's removal from the premises, the Rent Office became apprised of defendant's dereliction in making the registration which culminated in the ceiling rent being fixed at $25 per month by the Rent Director, according to an order dated January 10, 1951. The inspector explained that this order was merely of a temporary nature, was intended to serve in place of the registration which should have been made by the landlord, and specifically stated that the rent fixed therein was 'subject to change by subsequent order.'

Nine days later, on January 19, 1951, the Area Rent Director issued a second order, a copy of which is included in the record, and this second order decreased the monthly rent from $25 to $15 per month, and established the latter figure as the maximum rent effective as of June 23, 1949. Not alone that, but the landlord was commanded to refund to the tenant within thirty days all rents collected in excess of $15 per month. This suit is predicated on this second order.

Section 205 of the Housing and Rent Act of 1947, as amended by the act of March 30, 1949, 50 U.S.C.A.Appendix, § 1895, in force throughout the term of the verbal lease, reads:

'Any person who demands, accepts, or receives any payment of rent in excess of the maximum rent prescribed under section 204 shall be liable to the person from whom he demands, accepts, or receives such payment (or shall be liable to the United States as hereinafter provided), for reasonable attorney's fees and costs as determined by the court, plus liquidated damages in the amount of (1) $50, or (2) three times the amount by which the payment or payments demanded, accepted, or received exceed the maximum rent which could lawfully be demanded, accepted, or received, whichever in either case may be the greater amount: Provided, That the amount of such liquidated damages shall be the amount of the overcharge or overcharges if the defendant proves that the violation was neither willful nor the result of failure to take practicable precautions against the occurrence of the violation. * * *'

Defendant raises two defenses: (1) that the Rent Director acted illegally in issuing the second order in view of the first order which had been issued only nine days before, and (2) that the tenant had rented two rooms to persons who are named in the answer, and that he collected a large amount, in excess of the rent which he himself paid defendant, from them for the use of the two rooms.

There is no merit to the first defense. The defendant was under the legal duty of making timely registration of his property with the rent office. Bearing in mind defendant's failure to comply with the Administrator's regulations, we believe that the purpose of the first order was satisfactorily explained by the inspector. The Area Rent Director after inquiry and deliberation had the right to alter or revise his preliminary or provisional findings, and the notice so stated.

It makes no material difference that the tenant departed from the dwelling unit before the second and final order was issued, nor is the...