Campos Delgado v. Central Cambalache

64 P.R. 57
CourtSupreme Court of Puerto Rico
DecidedJuly 28, 1944
DocketNo. 8815
StatusPublished

This text of 64 P.R. 57 (Campos Delgado v. Central Cambalache) 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
Campos Delgado v. Central Cambalache, 64 P.R. 57 (prsupreme 1944).

Opinion

Me. Justice De Jesús

delivered the opinion of the court.

By deed of April 14, 1920, Fernando González Cabeza mortgaged, with the express consent of his wife Elisa Campos, several properties belonging to them in favor of Central Cambalache, Inc., to secure • a loan in the amount of $25,000. He bound himself to pay the debt in annual installments of $5,000 with interest at 8 per cent per annum, the first installment to become due on July 30, 1921, and the remaining ones successively on the same day and month of each subsequent year until 1925, on which date the last of said installments should become due. It was agreed that in default of payment of two installments of the principal or two annual interest payments, the whole debt would be considered due.

By another deed of May 22, 1920, González Cabeza and his wife constituted another mortgage in favor of the same. Central to secure another loan in the amount of $14,000. It was stipulated that the "amount owed would be paid within the period of six years ($2,000 on May 22, 1921, and $2,400 on the same day and month of each of the years 1922 to 1926 inclusive), with legal interest at 9 per cent per annum payable on annual installments at the domicile of the creditor. It was agreed .that if the debtor should fail to pay two consecutive installments of the principal and interest, the debt would be considered due.

González Cabeza died on May 31, 1923, his estate descending to his widow in the usufructuary share and to his children Juana María de los Angeles, Fernando, Juan, and José Antonio González Campos. His mother Juana Cabeza de [59]*59Madero received as legacy the usufruct of the third of free disposal, the sister of the testator, Guillermina González Ca-beza, being appointed as her substitute.

On December 18, 1925, after two mortgage credits had become due and since the debtors had only paid the amount of $628.99 on their account, the Central brought an action of debt, ease No. 8597, in the district court against Elisa Campos Delgado and her children wherein it prayed for a judgment in the amount of $56,574.07, with interest thereon up to the time of final payment, and costs, disbursements, and attorney’s fees. In the summons issued by the clerk the following was set forth:

“And you are hereby notified that upon your failure to answer said complaint . . . the plaintiff will obtain judgment according to the prayer in the complaint.”

The defendants did not appear and the clerk entered a default judgment,1 whereupon, on August 26, 1926, the mortgaged properties were sold as a whole at a public sale and adjudicated for the amount of $56,574.07 to Oliver, Matienzo & Co., S. en C., a partnership, and on September 2 following the deed of judicial sale was executed.

By deed of August 26,1927, the children of legal age of Gon-zález Cabeza and his widow, in her own behalf and as mother with patria potestas over her minor son José Antonio, sold to said partnership for the amount of $28,675 a sugar-cane plantation of about 200 acres (cuerdas) which they had on the properties sold at public auction, agricultural equipment and movable property, the purchaser retaining the amount [60]*60of $9,625.78 which the vendors owed to the Central for agricultural advances. After making the sale the following was stipulated in clause “D” of the deed:

“It is expressly agreed that Elisa Campos and her children voluntarily waive and convey any other rights which they might have on the properties belonging to Oliver, Matienzo and Co., acquired by purchase at public auction and specially the right' of homestead which they may have thereon, which waiver is made in favor of Oliver, Matienzo and Co., in consideration also of the amount received by the first, according to the act approved on March twelve nineteen hundred and three.”

By virtue of said deed of August 26, 1927, the widow received $8,250 as her share of the property sold and each child received $2,062.50, hut since no judicial approval had been obtained of the contract as to the minor, his share was deposited in the American Colonial Bank in the name of his mother and of the . District Attorney of Arecibo until said judicial approval should be procured. It was not until the execution of this deed that the widow and the children of González Cabeza delivered to the partnership the properties which had been adjudicated to them at the judicial sale.

By a deed of October 3, 1927, Guillermina González Ca-beza, who had substituted her mother at her death as the usufructuary of the third of free disposal, sold to the partnership .the usufruct for the amount of $500.

And lastly, by a deed of January 11, 1932, the partnership in payment of its debt to the Central, conveyed all the properties which it owned among those claimed by the plaintiffs.

Ten years later, at the end of 1941, or at the beginning of 1942,2 Elisa Campos Delgado and her children, with the exception of Juan, who refused to join the plaintiffs and was made a party-defendant, filed an action in the lower court [61]*61against the Central seeking the annulment of the judgment rendered in ease No. 8597, for revendieation, and for damages. Two canses of action are set forth in the complaint. In the first one, the properties acquired by the partnership in ease No. 8597 are described. It is alleged therein that said partnership acted in behalf and for the benefit of the Central, its partners being Andres Oliver Roses and José Matienzo Lezcano, president and vice-president, of the Central Cambalache, Inc., respectively; that since the latter is an agricultural corporation, the two mortgage deeds executed in its favor were void by virtue of the prohibition contained in § 3 of the Joint Resolution approved on May 1, 1900, by the Congress of the United States, which was later incorporated in § 39 of our Organic Act; that the partnership acted as a juridical entity to facilitate the violation of said prohibition and that inasmuch as the adjudication made at the public sale in favor of the partnership was simulated, since the real purchaser of the properties was the Central and the latter could not legally acquire them, said adjudication was void; that ever since the properties were delivered to the partnership the Central has been in possession thereof, cultivating them as its own; and that the plaintiffs have requested the Central to deliver the possession of the properties, which it has refused to do.

As a second cause of action, it is alleged that since September 2, 1926, the Central has been cultivating the propr erties and planting therein minor crops, pasture, and cane, which it later converted into sugar and molasses, and that it has received benefit-payments from the Agricultural Adjustment Administration for the cane not planted or left uncut; that the fruits yielded by the properties amount to $125,000, after deducting expenses of cultivation, property taxes, and insurance of harvest, and that the plaintiffs have requested the Central to deliver the properties and to pay [62]*62üiem the amount of $125,000 as net profit, which, it has refused to do. The complaint closes with the prayer for a judgment declaring:

(1) That the adjudication of the properties made at the public sale in favor of the Central, through the partnership, is nonexistent and that the deeds executed by reason of said sale are void for the following reasons: (a)

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Bluebook (online)
64 P.R. 57, Counsel Stack Legal Research, https://law.counselstack.com/opinion/campos-delgado-v-central-cambalache-prsupreme-1944.