Court Says 'Fair Profit' Formula Is Inconsistent With Rent Control Laws

Judge Haven Parker of the Third District Court of Eastern Middlesex declared yesterday that the "fair profit" formula of the Cambridge rent control administration is inconsistent with the standards of the rent control statute.

The purpose of the suit--filed by Charles R. Nesson '60, professor of Law; Sarah Raney of Cambridge and Somerville Legal Services; and Don Siegel '69 and Jim Schuyler of Harvard Legal Aid--was to challenge the formula that former rent control administrator William Corkery had adopted for granting rent control adjustments.

Spokesmen for both the tenants and the landlords are unsure whether rents will be rolled back on whether a restraining order will maintain rent charges at the present level.

Consistent Advice

"All lawyers representing the tenants will meet to analyze the implications of the decision so that they may give their clients consistent advice. In the mean-time we ask the tenants to take no action on their own," Siegel said.

Two intervenors in the case, the Cambridge Property Owners' Association and Harlow Properties, Inc., have indicated they will probably appeal the decision.

"We're checking it, investigating it, and our attorneys are in the process of reviewing it," Carl Barron, president of the Property Owners' Association, said. "The chances are excellent that the case will be appealed."

William Walsh, attorney for Harlow Properties, Inc., said the decision would be appealed. "It has all the earmarkings of a Supreme Court case. It (the outcome) could decide the issue of rent control for the State of Massachusetts for a long time," he said.

Siegel, speaking on behalf of the counsel for the tenants, said, "We're very confident we can win any appeal. We would prevail in both fact and law."

Schuyler will speak on the decision at a meeting of Cambridge citizens tonight at the Rindge Tech Auditorium. The meeting was called to discuss new rent guidelines.