Arvelo v. Banco Territorial y Agrícola

25 P.R. 677
CourtSupreme Court of Puerto Rico
DecidedJuly 27, 1917
DocketNo. 1365
StatusPublished

This text of 25 P.R. 677 (Arvelo v. Banco Territorial y Agrícola) 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
Arvelo v. Banco Territorial y Agrícola, 25 P.R. 677 (prsupreme 1917).

Opinion

Mb. Chief Justice Hernández

delivered the opinion of the court.

The appeal submitted for our reconsideration was taken by the plaintiffs from a judgment rendered by the District Court of San Juan, Section 1, on March 15, 1915, dismissing the complaint and the counterclaim with costs against the plaintiffs.

In the said complaint the plaintiffs pray for judgment against the defendant, the Banco Territorial y Agrícola de Puerto Bico, for the sum of $70,000 as damages for the value of the property conveyed to the said banking corporation in a foreclosure proceeding brought by it against the Succession of Hilario Arvelo and the rents yielded from September 26, 1898, to the date of the complaint, September 7, 1913, together with all the costs, expenses and fees, and that plaintiffs be granted any other relief consistent with the allegations of their complaint.

. The defendant demurred to the complaint on the ground' that it did not state facts sufficient to constitute a cause of action, and also that the action was barred by limitation, according to articles 1301 and 1968 of the Spanish Civil Code, corresponding to section 1268 and subdivision 2 of section 1869 of the Revised Civil Code. In its answer to the complaint, admitting some of its allegations and denying and rectifying others, the defendant set up a counterclaim, praying that in case the complaint should be sustained and judgment rendered against it for any amount, the plaintiffs be adjudged to pay to the Banco Territorial y Agrícola the sum of $9,965.80 as principal and $13,955.94 as interest accrued to June 30, 1913, and additional interest on the said principal at the rate of 9 per cent per annum until the date of payment, together with $88.46 as commission on advance payment and $361.22 for the costs incurred by the bank in the foreclosure proceeding, on the condition that pending payment to the Banco Territorial y Agrícola of the amounts [680]*680claimed in the counterclaim, the plaintiffs shall'not be entitled to receive, and. the bank shall not. be obliged to pay, the amounts, if any, which the court may order to be paid to the plaintiffs by reason of their complaint.

From the pleadings of the parties, together with the evidence shown by the record to have been admitted at the trial, the following facts appear:

1. By a public deed of June 3, 1896, Hilario Arvelo y Ríos created a voluntary mortgage in favor of the Banco Territorial y Agrícola- upon a certain rural property in the ward of Jayuya, of the municipality of. Utuado, recorded in his name in the registry of property, to secure a debt of 15,000 provincial pesos which he acknowledged that he owed to the Banco Territorial y Agrícola and agreed to pay under certain conditions,

2. When the said mortgage debt became due the Banco Territorial y Agrícola de Puerto Rico instituted a summary foreclosure proceeding under the Mortgage Law against the Succession of Hilario Arvelo in the court of first instance of Utuado to recover the amount due,, without alleging in the complaint the death of Hilario Arvelo or who were his heirs or whether they had accepted the inheritance, praying that demand for payment be made upon the Succession of Hilario Arvelo Ríos, which the court sustained, ordering that demand be made upon the Succession of Hilario Arvelo Ríos or the person in charge of the mortgaged property in any legal capacity.

3. That the demand so ordered was executed by the clerk of the court in the following manner:

“On February 23, 1898, accompanied by the constable, Miguel Arnau, I went to the. residence of , the Succession of Hilario Arvelo Ríos in the ward of Jayuya and finding there the widow of Arvelo Ríos, who said that her name was Florentina Vega and that she was in charge of the property referred to in this proceeding, I demanded that she pay the 15,547.94 pesos claimed by the Banco Territorial y Agrícola de Puerto Rico, ’ plus 3,000 pesos as interest and costs, within thirty days, and warned her that unless she did so the mort[681]*681gaged property would be sold at auction, at the same time delivering to her the copy presented by Solicitor Casalduc. She did not sign because she said that she could not write, and at her request Nemesio Arvelo signed for her after the constable had signed before me, to which I certify. Miguel Arnau. Nemesio Arvelo. Carlos Buitrago.”

The widow of Arvelo was known by the names of Floren-tina, Flores, and Sinforiana.

4. Payment not having-been made within the time fixed, the bank moved that the mortgaged property be sold at auction and the court sustained the motion, entering an order on March 28, 1898, for the «ale of the property on April 25 following. On the said twenty-eighth day of March notice of the sale was issued. A copy was posted publicly in the customary place in the court of Utuado and another copy was delivered to the bank’s solicitor for publication in the Gazette and was published therein in the issues of April 5, 6 and

7, 1898. The first sale was abandoned because no bidder appeared.

5. On motion of the mortgagee, on May 23, 1898, the court ordered a second sale to be held on June 20, 1898, and reduced the valuation of the property 25 per cent. On the date of the court’s order notice of the sale was issued, one copy being posted on the door of the courthori.se and another delivered to the solicitor of the bank for publication in the Gazette, and it appeared in its issues of May 31 and June 1 and 2, 1898. The second sale also failed to take place for the lack of a bidder.

6. On motion of the mortgagee and by an order of July 8, 1898, the court set a third and final sale for August 4 at a minimum upset price of the amounts secured by the mortgaged property. On the said eighth day of July notice of the sale was issued as ordered, two copies being posted in the customary public places and another delivered to the solicitor of the mortgagee for publication in the Official Gazette, in which it was published in the issues of the seven[682]*682teenth, nineteenth and twenty-first of the same month of July. This third sale also failed because there was no bidder.

7. On September 20, 1898, the mortgagee bank moved that the mortgaged property be conveyed to it in payment of the debt claimed, and on the twenty-sixth the court ordered that the said property be conveyed to the bank for the sum of 15,546.94 provincial pesos. Notice of this was given to the widow of Hilario Arvelo in the ward of Jayuya, at the residence of the Succession of Arvelo, as stated by the clerk who served the notice by reading the order and delivering a copy of it to the widow, who did not sign because she said she did not know how to write, Bamón Árvelo signing for her at her request.

8. .On motion of the grantee bank and by order of the court of Utuado the constable of the said court, accompanied by the clerk, went upon the said property on March 10, 1899, and delivered possession of it to the .bank, which was represented in that act by Bamón Arvelo.

9. The Banco Territorial y Agrícola recorded its title to the mortgaged property in the registry, the said record setting out that demand for payment had been made upon the Succession of Arvelo, but the dates on which the notices of each sale were published • were hot stated.

10.

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Bluebook (online)
25 P.R. 677, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arvelo-v-banco-territorial-y-agricola-prsupreme-1917.