TESTA V. KATT
330 U.S. 386 (1947)
NATURE OF THE CASE: Testa (P) appealed a reversal of an award for damages under 205 (e)
of the Emergency Price Control Act, 56.
FACTS: The Emergency Price Control Act provides that a buyer of goods at above the
prescribed ceiling price may sue the seller 'in any court of competent jurisdiction' for not
more than three times the amount of the overcharge plus costs and a reasonable attorney's
fee. The Act provides that federal district courts shall have jurisdiction of such suits
'concurrently with State and Territorial courts.' Such a suit under 205 (e) must be
brought 'in the district or county in which the defendant resides or has a place of business
. . . .' Katt (D) sold a car to P for $210 over the ceiling price. Both P and D Providence.
P sought under 205 (e). The court awarded treble damages and costs. On de novo appeal to
the State Superior Court P was again awarded judgment, but only for the amount of the
overcharge plus attorney's fees. On appeal, the State Supreme Court reversed, in that 205
(e) was 'a penal statute in the international sense' and an action for violation of 205 (e)
could not be maintained in the courts of the State. The Supreme Court granted certiorari.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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