Business Women's Ass'n v. Knight

MOORE, P. J. The question for decision is whether the judgment of a state court is void by reason of its award of treble damages as provided by the Emergency Price Control [95]Act of 1942 [56 Stats. 23; 50 U.S.C.A.App. § 901 et seq.], herein referred to as the act, where the party affected by the order of the O.P.A. has not complied with the procedure outlined in the act for vacating such order.

Appellant, Business Women’s Association, herein sometimes designated “BWA,” owns and occupies a 10-room house in Los Angeles which it utilizes as a clubhouse for hardship cases of indigent women. In November, 1946, respondents and others filed in the municipal court of the city of Los Angeles an action against appellant for overcharges of rent. The court found that appellant did not operate its premises as a nonprofit California corporation and had failed to comply with O.P.A. rent regulations; that it “had collected certain named sums from each of plaintiffs in said action” and entered judgment against appellant for treble the amounts which those plaintiffs had paid to BWA.

On August 20, 1947, appellant filed the instant action to set aside and annul such judgment on the ground of lack of jurisdiction. By its amended complaint appellant alleged that the act did not empower the administrator of the Office of Price Administration “to regulate the charges or prices to be charged for the rental of rooms in a structure owned and operated by a nonprofit, benevolent or educational institution”; that appellant was a nonprofit corporation and therefore did not “come within the scope and regulation of the Rent Control Act”; that the municipal court “had no authority or jurisdiction to entertain said action.” A general demurrer to appellant’s complaint having been sustained without leave to amend, this appeal is taken from the ensuing judgment of dismissal.

Character of Appellant Corporation Not Involved

Appellant’s character as a nonprofit corporation is not involved. In 1942, pursuant to the act, the Federal Housing Administrator issued a regulation governing rooming houses, residential hotels, etc. Paragraph 1388.1231, section lb, subdivision 5 of such regulatory order provided that if the administrator certifies on the written request of the landlord that a club which occupies rooms is a nonprofit organization and is so recognized by a writing of the Bureau of Internal Revenue, and rents its rooms to members only and to their guests who are members of bona fide clubs having reciprocal arrangements for the exchange of privileges, and is otherwise operated as a bona fide club, the regulation shall not apply to the hous