Banco Popular v. District Court of San Juan

63 P.R. 63
CourtSupreme Court of Puerto Rico
DecidedFebruary 9, 1944
DocketNo. 1552
StatusPublished

This text of 63 P.R. 63 (Banco Popular v. District Court of San Juan) 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
Banco Popular v. District Court of San Juan, 63 P.R. 63 (prsupreme 1944).

Opinion

Mr. Justice Snyder

delivered the opinion of the court.

Banco Territorial y Agrícola de Puerto Rico has been under liquidation in the District Court of San Juan pursuant to Act No. 17, Laws of P. R., 1933, for a number of years. The petitioner, Banco Popular d'e Puerto Rico, has served as the statutory liquidator from 1937 to date. On June 23, 1942 the petitioner filed a motion in the liquidation-proceedings praying for the sale at public auction of the remaining- assets of Banco Territorial. After proper notice- and hearing, no opposition thereto having been filed, the-said public sale was duly ordered, advertised, and held. Thereafter, on motion of the petitioner and after Rearing thereon, the district court on January 7, 1943 entered- an order approving, with minor exceptions, the sale of the remaining assets. No appeal was taken from, this order.

On August 5, 1943 the petitioner filed' a motion praying that the district court (a-) approve its final report on the liquidation of Banco Territorial, and (b) discharge the petitioner from any further obligations in connection with the liquidation proceedings. Prior to action by the Tower court on this motion, the members of a Special Investigating Committee of Banking Institutions in Liquidation of the House of Representatives, represented by the Attorney' General, filed a motion in the district court dated, October 13, 1943, reciting that the said Committee, pursuant to a House Resolution, was investigating the sale' involved herein and would render a report thereon to the House “and submit it to the consideration of this Honorable Court as a source of information and material for investigation, before this court reaches its-final decision regarding the report and the accounts rendered by the liquidation”. The motion quoted from the Resolution creating the investigating committee “the belief that certain abnormalities, irregularities, liaste and ambiguity existed in the adjudication made at the sale of certain assets of the Banco Territorial y Agrícola de [66]*66Puerto Eico, nominally valued at approximately $420,000.00, which sale was made about. October 30, 1942, for a sum which scarcely amounts to 2 per cent of said nominal value”. The motion, concluded as follows:

“7. That the petitioners consider it' essential for the best performance of the judicial function in this ease, that this Honorable Court have at its disposition all reports and data which the Special Investigating Committee of the House may collect at the public hearings, to the end that the judicial order shall not be at variance with the result of the legislative investigation, to the prejudice and ■detriment of the public interests involved.
'‘IVnKRKi'OR::, the petitioners respectfully suggest and pray:
(a) That this Honorable Court postpone the issuance of its order on the final report on the liquidation of the Banco Territorial y Agrícola de Puerto Eico until the Special Investigating Committee of the House files its report and a copy of the same'is submitted to this Honorable Court, without prejudice to the liquidation being ■■adjudged as finished, in order- to avoid further unnecessary expense ...”

The district court heard argument and took testimony on this motion. On November 12, 1943 the lower court entered an order reading in part as follows:

“Whereas, this court has no doubt that the report of the said Investigating Committee will be of great assistance in the decision to be readied on the final approval of the liquidation of the Banco Territorial y Agrícola, and that all of this will be to the benefit of the community as a whole due to the fact that the Bank under liquidation had a large number of depositors of limited means;
“Whereas, the report of the aforesaid Investigating Committee, as appears from the testimony adduced, will be finished and a copy of same filed with this court not later than four months from October 27;
“TiiereeoRe, the motion filed by Messrs. Piñero, Quiñones, Ells-worth, Nevares Santiago' and Beguero González is granted, and consequently the decision of this court on the final report of the liquidation of the Banco Territorial y Agrícola de Puerto Eico is postponed until the aforesaid Special Investigating Committee of the House of Eopresentatives of Puerto Eico files its report and submits a copy thereof to this court, without prejudice to adjudging the liquidation as finished.”

[67]*67We granted the petition of Banco Popular for certio-rari to review this order on the merits in view of the contention that the order violated the constitutional doctrine of the separation of powers (Act No. 32, Laws of P. II., 1943).

The doctrine of the separation of powers, as originally set forth in the Federal and State constitutions and as applied to particular situations arising during the last one hundred and fifty years, has, on occasion, been imperfectly understood, it is simple for political theorists to assert glibly that the division of governmental powers consists of the following: the legislative department initiates policy, which the executive branch executes, with the judiciary adjudicating controversies resulting therefrom. But this is far from an answer to the manifold problems engendered by this doctrine of government. It serves only to define rather than to solve the really difficult problems.

At the risk of restating the obvious, it is well to recall the genesis of the doctrine of the separation of powers, “It was not without good reason, based on experience, that Americans, almost at the moment independence was declared, set up written frames of government or constitutions and put the separation of powers at the foundation and a bill of rights in the forefront of them. From the beginning down to the Revolution the colonies had been subject to a completely centralized government with no distribution of powers and had learned what this sort of government meant.... One cannot wonder that this doctrine was received in America and put in the bills of rights after independence when he reads the high-handed statutes, interfering with every sort of individual conduct and belief and teaching of which the colonial legislatures were continually guilty, or the statutes probating wills rejected by the courts, dictating the administration of particular estates, suspending the statute of limitations for a litigant in a particular case, and exempting a particular wrongdoer from liability for a particular [68]*68wrong for which his neighbors would be liable, with which colonial statute books are filled.” '(Pound, Administrative Law, pp. 51, 52, 54):

“The substructure of the new nation was a tripartite division of governmental powers, whose ultimate purpose was, in short, to secure the liberty of the individual from oppression by any one department.” (Landis, Constitutional Limitations on the Congressional Power of Investigation, 40 Harv. L. Rev. 153, 4). “The doctrine of the separation of powers was adopted by the Convention of 1787, not to promote efficiency but to preclude the exercise of arbitrary power. The purpose was not to avoid friction, but, by means of the inevitable friction incident to the distribution of the governmental powers among three departments, to save the people from autocracy.” (Brandeis, J., dissenting in Myers v. U. S., 272 U. S. 52, 293).

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63 P.R. 63, Counsel Stack Legal Research, https://law.counselstack.com/opinion/banco-popular-v-district-court-of-san-juan-prsupreme-1944.