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DRAFT FOR ATTORNEY REVIEW — NOT FINAL

Bernstein Management Corp. v. District of Columbia Rental Housing Commission, 952 A.2d 190 (2008)

Citation
Bernstein Management Corp. v. District of Columbia Rental Housing Commission, 952 A.2d 190 (2008)
Parent Document
Bernstein Management Corp. v. District of Columbia Rental Housing Commission, 952 A.2d 190 (2008)
Jurisdiction
DC (municipal)
Effective Date
2008-07-10

Other Sections in This Document (44)

Full Text

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Petitioner argues that even if the Rent Administrator and the Commission had authority to impose fines and treble damages, their decision to do so in this case was arbitrary because the Rental Housing Act does not provide any standards on which an agency can base such a determination. We disagree. The statute authorizes the imposition of a civil fine up to $5,000 only if it is determined that the infraction was “willful[ ],” D.C.Code § 42-3509.01(b), and treble damages “in the event of bad faith,” id. § 42-3509.01(a). The statutory penalties here are therefore distinguishable from the scheme disapproved in County Council v. Investors Funding Corp., 270 Md. 403, 312 A.2d 225, 246-47 (1973), a case on which petitioner relies. In County Council, the Maryland statute provided for the imposition of a civil penalty not exceeding $1,000 “for the violation of any provision” of the landlord-tenant law. Id. at 246. The Maryland Court of Appeals held that because the penalties that the government charged in that case were not determined according *197to the class or nature of the violation, and thus lacked legislative safeguards or standards, the grant of unlimited discretion to the county administrative body to fix such penalties was illegal. The D.C. statute, on the other hand, provides a standard, necessitating a finding of a willful violation or bad faith, and, therefore, the Rent Administrator and the Commission do not have the “unrestricted [and] unbridled discretion” that the administrative agency in County Council had. Id. V.