Castello v. Pérez

23 P.R. 709
CourtSupreme Court of Puerto Rico
DecidedApril 28, 1916
DocketNo. 1387
StatusPublished

This text of 23 P.R. 709 (Castello v. Pérez) 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
Castello v. Pérez, 23 P.R. 709 (prsupreme 1916).

Opinion

Mr. Chief Justice Hernández

delivered the opinion of the court.

This is an appeal from a judgment of the District Court of Mayagiiez of April 39,' 1915, dismissing the complaint with the costs, expenses, disbursements and attorney fees against the plaintiffs.

In the complaint the plaintiffs prayed for the following:

1. That the public sale bjr Special Master Benjamin S. Cornwell on September 4, 1909, of the property described in said complaint and known as “Fe” to defendant N. B. K. Pettingill in the action prosecuted by A. Buffer & Sons against Agustín Castelló Busquets and others, is null and void.

2. That consequently the deed of sale executed in favor of defendant N. B. K. Pettingill by the special master on September 15,1909, before Notary Eugenio Géigel, and the record of the same in the Begistry of Property of Mayagiiez, are also null and void.

3. That in like manner the deed of sale and mortgage of the said property executed by defendant N. B. K. Pettingill on February 28, 1910, before Notary Eugenio Géigel in favor of the other defendant, Tomás Pérez Sales, is null and void, as is also its record in the registry.

4. That the defendants who. opposed the action be adjudged to pay the costs, expenses and attorney fees.

The plaintiffs allege that Agustín Castelló, their predecessor in interest, by virtue of the dissolution of the Maya-giiez firm of Patxot, Castelló & Company, acquired the property called “Fe,” which is described in the complaint; that in a suit brought by A. Buffer & Sons, of London, in the Federal Court of Porto Bico against Agustín Castelló as liquidator of the said firm for the foreclosure of a mortgage on the said property, judgment was rendered on January 9, 1904, decreeing that defendant Castelló pay to plaintiffs [711]*711A. Buffer & Sous, or their attorney of record, the sum of $10,264.81 within five months from the date of the judgment, and further decreeing that in case of failure ■ to make the said payment the mortgaged property should he sold at public auction; that in accordance with the judgment the special master appointed by the court, Benjamin S. Cornwell, sold the property “Fe” at public auction on September 4, 1909, to defendant N. B. K. Pettingill for the sum of $8,000; that on September 15, 1909, the special master executed before Notary Eugenio Gréigel, the proper deed' of judicial sale in favor of Pettingill, who recorded it in. the registry; that later by a deed of February 28, 1910, which was also executed before Gréigel and recorded in the registry, the said Pettingill, in his own right and as attorney in fact of his wife, sold the property “Fe” to the other defendant, Tomás Pérez Sales, who mortgaged the property in favor of his vendor to secure the payment of the unpaid balance of the purchase price; that Agustín Castelló having died, the plaintiffs are his sole and universal heirs.

As grounds for the nullity of the sale to Pettingill and of that by Pettingill to Pérez Sales, the plaintiffs also alleged that from the time A. Buffer & Sons filed their complaint in the Federal Court against Agustín Castelló until the execution of the judicial deed of sale, N. B. K. Pettingill was the attorney of record of the former in that ease and that this fact, i. e., that Pettingill was the attorney of A. Buffer & Sons in the suit in which he acquired the property, clearly ap^ peared in the registry at the time of the sale to Pérez Sales.

In his answer defendant Pettingill alleged that he did not acquire the property “ Fe ” at the public auction for his own benefit, but purchased it for the account and benefit of A. Buffer & Sons, whose attorney he was, although this was not stated at the sale or in the deed executed by the special master in his favor; and both Pettingill and the other defendant, Pérez Sales, denied that there was any showing in the registry that Pettingill was the attorney of A. Buffer & [712]*712Sons in tbe suit for foreclosure, Pérez Sales being ignorant of that fact.

■ The case went to trial and judgment was rendered in the terms already stated, which judgment is submitted to our consideration by virtue of an appeal taken therefrom by the attorney for the plaintiffs.

In its opinion the lower court bases its judgment on the following findings:

“1. Although it is true that the deed executed on September .15, 1909, by Special Master Benjamin S. Cornwell in favor of N. B. K. Pettingill does not show that the sale was being made for the benefit of A. Buffer & Sons, the court is convinced that the sale was not actually made to Pettingill personally, but for the account and benefit and under instructions from bis clients who were credited with the amount of the sale.
“2. It was not clearly shown in the registry, and the court is of the opinion that it was not shown at all, when N. B. E. Pettingill executed the deed of sale of the said property in favor of Tomás Pérez Sales that the former was the attorney for A. Buffer & Sons in the action resulting in the acquisition by him of the said property at public auction.’'

In opposition to the foregoing findings the appellants assigned the following grounds of appeal:

1. The lower court erred in holding that although the deed of sale executed by the special master was executed in ■favor of Pettingill, it - is convinced that it was executed in fact for the account and benefit of his clients, A. Buffer & Sons.

2. The lower court erred in holding that it is not clearly shown in the Registry of Property of Mayagiiez that at the time Pettingill sold the property to Pérez Sales the former was attorney for the mortgagees in the suit for foreclosure which resulted in the auction sale.

The two errors maybe condensed into one, namely, error in weighing the evidence as to whether Pettingill acted for the account and benefit of his clients, A. Buffer & Sons, when he purchased the property “Fe” at public sale, and as to [713]*713whether it was clearly shown’ in the registry that at the time •of the said sale Pettingill was attorney for A. Buffer & Sons :in the suit in which the sale was made.

The evidence introduced shows positively that defendant N. B. K. Pettingill was attorney for A. Buffer & Sons in ■the action brought by them in the Federal Court against Agustín Castelló as liquidator of Patxot, Castelló & Company, and that being such attorney for A. Buffer & Sons he ■purchased the mortgaged property for $8,000 in his own name at a public sale by the special master of the Federal ■Court and satisfied the same by delivering the following-receipt :

“Mayagüez, P. R., September 4, 1909.
“A. Buffer & Sons, the complainants in the suit against Patxot, ■Castelló & Company for the foreclosure of a mortgage upon the plantation ‘Fe,’ do hereby, by their attorney of record, acknowledge the receipt of the sum of eight thousand dollars, for which said plantation has this day been sold by Benjamin S. Cornwell, as special master, and hereby stipulate- and agree that the said sum of eight thousand dollars shall be credited as a payment made upon the amount found to be due from defendants to plaintiffs in said suit. N. B. K. Pettingill, counsel of'record for A. Buffer & Sons.”

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Bluebook (online)
23 P.R. 709, Counsel Stack Legal Research, https://law.counselstack.com/opinion/castello-v-perez-prsupreme-1916.