Alonso v. Madera

32 P.R. 661
CourtSupreme Court of Puerto Rico
DecidedFebruary 1, 1924
DocketNo. 2759
StatusPublished

This text of 32 P.R. 661 (Alonso v. Madera) is published on Counsel Stack Legal Research, covering Supreme Court of Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alonso v. Madera, 32 P.R. 661 (prsupreme 1924).

Opinion

Mr. Justice Hutchison

delivered the opinion of the court.

Jaime Pizá and Leopoldo Santiago appeal from a preliminary order issued in a suit for a permanent injunction after a hearing on an order to show canse, restraining them and other defendants, pending a final determination of the issues involved, from using the-words Alonso Riera” as part of the name of the corporation Alonso Riera and Company, Ine., or on envelopes or in letters and circulars or otherwise in such maimer as directly or indirectly to canse confusion between the name of the said corporation [662]*662and that of the business’ already established by the plaintiff, Javier Alonso Riera.

Enough of the pleadings, affidavits and documentary evidence to show in a general way what was before the trial judge at the time of issuing the preliminary writ was set forth in Alonso Riera & Company, Inc., v. Campillo, District Judge, 30 P. R. R. 276, wherein the corporation applied to this court for a writ of prohibition, and to which we refer in the interest of brevity for a better understanding of the facts involved herein.

In the instant case appellants now insist that—

1.The District Court of San Juan, First District, erred in assuming jurisdiction as a court of equity in a case where it had no such jurisdiction because of a lack of facts to establish it and because the plaintiff had his remedy at la.w.
2. The court erred in granting this injunction in the absence of a plea of specific, but merely of possible, imaginary or 'speculative, damages.
3. The court erred in granting an injunction in a case where irreparable injuries for which no relief can be obtained in an action for damages, are not pleaded or shown.
4. The court erred in granting a preliminary injunction partaking of a mandatory character in a case in which such order -virtually disposes of the 'suit.
5. The court erred in deciding in a. preliminary injunction questions of fact and of law pending decision, without giving the parties an opportunity to establish facts and-argue legal issue's.

Appellants say that as to. them the facts alleged do not entitle plaintiff to relief in a court of equity:

1. Because they refer to persons, acts, contracts and legal relations foreign to the appellants.
2. Because they are not connected with the incorporation of Alonso Riera & Co. Incorporated, at least those shown under letters A to H.
3. Because in order to present them the plaintiff has made aver-ments of law which are of the sole incumbency of a competent court or tribunal, to wit: the nullity of agreement for the use of the firm name and the dissolution of the firm of Alonso Riera [663]*663& Co., which, allegations are but mere conclusions of law unauthorized by any tribunal or by the statements or admissions of the parties in the acts and contracts referred to.

It is true that the complaint leaves much to be desired in so far as any connection between appellants herein and the activities imputed to Herminio Madera is concerned. It does allege, however, that Madera, in order to avoid such decree as mig'ht be entered in the pending proceeding for an injunction, “maliciously procured” appellants together with other persons surnamed Hiera and Alonso respectively “to enter into and figure as incorporators” of the new Corporation; that the said Riera and Alonso had been “made to figure as incorporators by the said Herminio Madera, solely and exclusively for the purpose of using their names in a name of the said corporation,” and that the newspaper notices gave the names of the said incorporators, including appellants, without mentioning or connecting therewith in any way the said Herminio Madera, all of which tended to increase the actual confusion by apparently adding a new entity in which the surname Alonso Riera was to figure, in addition to those already in existence.

Construing these averments in the light of the context, the plain inference is that appellants were not the real in-corporators, but mere dummies or stalking horses used by Madera as a means to a- consummation of the plan, • which in this manner, it was also alleged, “had been recently carried out.”

If appellants were in fact bona fide incorporators, innocent of any conscious connection with the real purpose for which the corporation was alleged to have been organized, a simple disclaimer of any such connection, or even an affidavit, like that of Mariano Riera Palmer, stating the facts, might have saved them any further trouble or inconvenience by reason of the controversy between plaintiff and Madera.

[664]*664It may be that plaintiff is estopped to deny the validity of his agreement, upon his retirement from the firm of Alonso Eiera & Company, that the partnership might continue to use the firm name throughout the term of the partnership, or.during the period of any extension thereof. The averment that the partnership has ceased to exist may he a conclusion of law, but the complaint also alleged the fact upon which that conclusion was based, to wit, the acquisition by Madera of the entire interest belonging to the only other member of the firm, subsequently to the retirement of plaintiff and his brother therefrom. i

The brief for appellant seems to assume rather than to show that such acquisiton by a single partner did not necessarily operate the dissolution of the firm. Much stress is laid upon the proposition that an injunction will not issue to protect a doubtful or disputed right.

"The doctrine that a right or title involved must he established in a court oE law before an injunction will issue does not, however, apply to all cases where a temporary restraining order is asked. It may also happen that irreparable injury is threatened where such a situation exists, in which ease the court may grant relief by injunction, notwithstanding there is a dispute as to title, and, having assumed jurisdiction on that ground, may, it is held, proceed to adjudicate on the rights of the parties, even though it involves a determination as to the question of title. Relief in equity may also be had before plaintiff has established his rights at law, where the material facts out of which his rights arise are admitted; and 'if there is a doubt as to his rights, it is one of law only. Tt may also be remarked in this connection that while under the former system of jurisprudence, in which relief in equity was administered by a different tribunal and by a. different procedure from those that gave relief at law, courts of equity have 'sometimes refused to interfere before the right was established at law, there seems to be no good reason, under the present 'system in code states where both are blended, why such relief should not be granted in the fir'st instance by injunction and it has been so ruled.” 14 R. O. L., p. 356, sec. 58.

In our consideration of the application by the corpo[665]*665ration for a writ of prohibition, we pointed out that a court of equity in a proper case may disregard the distinction between the corporation as a legal entity and its stockholders.

Free access — add to your briefcase to read the full text and ask questions with AI

Cite This Page — Counsel Stack

Bluebook (online)
32 P.R. 661, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alonso-v-madera-prsupreme-1924.