Cass v. Arias

5 P.R. Fed. 217
District Court, D. Puerto Rico·Decided November 13, 1909·No. No. 618·Published

Opinion

[218] A was the owner of a large plantation, and, desiring to cultivate pineapples npon the same, entered into a five-year contract with B to plant and manage the same, A to furnish all money, implements, and help in and about the premises. At the end of about a year and a half, after a large amount of planting had been done, which A alleged was a complete failure owing to the incompetency of B, and, after A had spent more than ten thousand dollars in such expenses, in the way of paying salary and furnishing a house for B and paying for the labor, etc., and after, as he contended, seeing that the whole project was a failure owing to the incompetency of B, excluded B from the premises, and the latter brought suit. Held: That their differences were matters entirely for the jury under proper instructions, which

Rodey, Judge,

gave to them as follows:

The plaintiff in this case sues' the defendants for a wrongful breach of contract and damages to him thereunder, and asks judgment at your hands in his favor for the sum of $37,944 with the costs of the action. He specifies in his amended complaint that this damage is made up of $31,000 on account of the profit that would have accrued to him under the contract between the parties, had it not been for the action of the defendants; $3,944.40 for plaintiff’s interest in the pineapples and profits that would have accrued to him from the first harvest, as set forth in paragraph 4 of his amended complaint; and $3,000 for loss of employment of plaintiff, inability to meet his obligations, and loss of credit, as is set out in paragraph 6 of his complaint, The court instructs you that in no event could the plaintiff in law recover this last item of $3,000. It is too remote and you are not permitted to allow him anything on that account.

[219] On tbe other hand, the defendants deny any liability at all on any account to the plaintiff, and file a cross complaint against him wherein they allege that he has damaged them in the sum of $20,833.20, which is made up of $9,000 for money advanced for the planting of slips, cultivation of the crop, the price of the slips, etc., and $11,833.20 for the loss of profits that would have accrued to the defendants for their share of the first harvest, had it not been for the negligence, inexperience, mismanagement, and inefficiency of the plaintiff. They therefore ask you to ignore his claim against them as having no foundation in truth or in fact, and to give them an affirmative judgment against the plaintiff for the amount they thus claim.

It will thus be seen that the facts and claims surrounding the case are of such a character that it is peculiarly the duty of a jury of sensible men to find the truth and settle the rights of the parties under the law as given you hy the court.

As you have seen, the defendants were the owners of a tract of land, and the plaintiff was supposed to be a person versed in the cultivation of pineapples. The parties entered into a written contract on July 24, 1907, that is before you, whereby the defendants were to furnish the land for the enterprise and pay all the costs and expenses of carrying it on, and the plaintiff was to have charge thereof and devote his whole time and attention to the same, and was to get 25 per cent of the net profits as his share in the undertaking, but he was also to get $30 per month as an advance, during the life of the contract, to be charged against his interest in the profits, besides an additional $30 per month for taking care of a cocoanut grove, etc., in which he had no profit-earning interest. It was also provided that, if during the first year there should be no profits, then the defend[220] ants would not have to make tbe $30 per month advance for the future, during the life of the contract, on that account.

The court instructs you that although the contract (paragraph G) uses the language: “And if during the first year there should be no profits, Bird Brothers will not have to advance anything further for future years,” still it would be unreasonable to hold, under all the facts and circumstances of this case, that this language meant a calendar year of twelve months, and therefore the court instructs you that it meant, and you must hold it to mean, a crop or harvest year, even should that be more than twelve months, because it is manifest that the intention of the parties referred to the profits of the first crop, and, if it took more than a year to raise it, that is what they meant.

The contract, as you will see, was for a period of five years with a possible renewal of the same by agreement thereafter, but it was provided (paragraph 1) that the same might be shortened if either party should so desire, but in such event the one desiring to end the contract should purchase the other’s rights in the plantings.

Now, it is fundamental in law that when parties enter into a written contract of partnership, they are bound by the terms of that contract, but it is equally the law that when the minds of two people meet in making a contract, if either misrepresents the facts and deceives the other, and the one who is deceived thereafter breaks or ends the contract because of such misrepresentation or deceit, the law permits such person to do so, and if the damage the person breaking the contract has sustained by reason of the acts of the other equals any interest or right such other has in the partnership property, then the person breaking the contract is not liable in damages for his act.

[221] Therefore, if you believe from a preponderance of the evidence in this case that the plaintiff here represented himself, either by himself or his friends, to be a person who had experience in and was well versed in the planting and raising of pineapples, and that such representations induced the other party to enter into the contract with him, and that in truth and in fact he did not have any such experience and was not such competent person, and that in consequence thereof the defendants sustained losses, and. were being injured by continuing the-contract with him, they had a perfect right to end the' same at any time, and to offset the damages, if any, which his action may have caused to them, against any then interest or right he may have had in the concern, if it was worth anything.

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Cass v. Arias, 5 P.R. Fed. 217 (prd 1909).

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