Cayuga Linen & Cotton Mills, Inc. v. Crédito y Ahorro Ponceño

41 P.R. 462
CourtSupreme Court of Puerto Rico
DecidedJuly 29, 1930
DocketNo. 4706
StatusPublished

This text of 41 P.R. 462 (Cayuga Linen & Cotton Mills, Inc. v. Crédito y Ahorro Ponceño) 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
Cayuga Linen & Cotton Mills, Inc. v. Crédito y Ahorro Ponceño, 41 P.R. 462 (prsupreme 1930).

Opinion

Mr. Justice Wolf

delivered the opinion of the Court.

We are agreed with the conrt below that the facts and conclusions to be drawn in this case are more or less as follows : The Cayuga Linen & Cotton Mills, Inc., a corporation of New York, with its principal office at Albany, New York, presented a complaint before the District Conrt of San Juan [463]*463to recover the sum of $1,609.86 and interest. The suit was filed against the Crédito y Ahorro Ponceño, a Puerto Eican corporation with its principal office in the city of Ponce, and for that reason the case was transferred to the last named city. The complaint set up that on the 7th of September, 1924, the parties entered into a contract whereby the complainant sold to the defendant twenty boxes of 150 lbs. each of cloth to wrap up tobacco, at the price of 38‡ a pound, f. a. s. (al costado del vapor), to be shipped in the last week of November; that the complainant shipped the said merchandise in accordance with the contract and drew against the defendant for $1,609.86 with freight to San Juan and insurance; that the draft was not accepted despite the fact that the defendant had accepted the merchandise, and likewise, despite the request for payment the complainant had not been paid all or any part of the said amount.

The defendant made some denials, and the case was at issue on the 16th of September, 1927, and then, after various motions on the part of the plaintiff, the case was finally set for the 27th of January, 1928.. The court then goes on to set out the evidence that was submitted by the parties, and then held that the following facts had been proved: That the Cayuga Linen & Cotton Mills, Inc., of New York, sold to the Crédito y Ahorro Ponceño, of Cayey, Puerto Eico, through the firm of Fernández & Pérez, of San Juan, Puerto Eico, twenty boxes of cloth to wrap up tobacco, etc.; that the merchandise the object of the sale was shipped on the port of Baltimore, State of Maryland, ‘U.S.A., consigned to the defendant at the port of San Juan, Puerto Eico, and that this merchandise, when it was opened in Puerto Eico and examined by the defendant, proved to'be damaged, inasmuch as it was completely soaked with water (mojada con agua) and proved to be worthless. It was an admitted fact by the parties that Fernández & Pérez were the agents and representatives of the complainant in Puerto Eico, and that the [464]*464merchandise was damaged by water; that there was no controversy with respect to these facts, but there was one with, reference to who should suffer the loss, each party claiming; that the other should suffer it; that in support of its theory the plaintiff maintained that the merchandise was sold f. a. s. Baltimore, Md., and this constituted a formal delivery to the' defendant, and that all the risk and damage that the merchandise suffered from that moment until its arrival at Puerto' Rico would have to be endured by the defendant; and the-defendant maintained that the delivery had to be made in Puerto Rico in the month of November, 1925, that the merchandise did not arrive until January, 1926, and that any damage which the merchandise suffered until it was delivered to the defendant would have to be borne by the complainant, and, besides, that there was no formal delivery, and that,, even if there had been, the merchandise was returned to the-complainant.

The court then proceeded to discuss the abbreviations “f. a. s.” and “f. o. b.”, and cited authorities that these words mean “the price to be charged at the time of such delivery”. The court said that there was no doubt that the initials “f. a. s.” were used in connection with the price of the merchandise, and not to indicate the place of delivery. Necessarily, the court and everybody else in the case agreed that if the contract contemplated a formal delivery at the side of the vessel, the defendant would be responsible. The court held that there was no special agreement to this effect, and therefore, the condition would have to be determined from the proof. The court showed that the contract said that the merchandise be shipped to the Crédito y Ahorro Ponceño of Cayey, Puerto Rico, consigned to the port of San Juan, Puerto Rico, and that until the complainant delivered the merchandise in the port of Puerto Rico there was no formal delivery, and the title remained in the complainant, and citing from 24 R.C.L. 47, the court uses the English words “The risk follows the title”.

[465]*465That the plaintiff, however, did not deliver the goods to the port of New York as the contract seemed to indicate, but delivered them in Baltimore, was another conclusion of the-court by which the plaintiff could not maintain that the title-had passed to the defendant by reason of the delivery to* the ship. The court furthermore held that the intention of' the parties that the plaintiff should retain the title until the goods were delivered in Puerto Rico was evidenced by the execution of a bill of lading and a draft sent to the National City Bank of New York; that when the plaintiff intends to deliver the title he does not ordinarily send a bill of lading, but retains the title to the merchandise until a formal delivery is made. The court went on to say that it could not be said that the defendant received and accepted the merchandise because the proof showed that the general agents of the complainant retained it without getting the bill of lading or the invoice and because the defendant had a right to examine the merchandise and to refuse to accept it if it was not in a serviceable state; that not only was there no formal delivery to the defendant, but that the contract was never perfected, because before the formal delivery, in the process of examining and in noting by the defendant that it was rendered Useless by water and in calling the attention of the plaintiff, the latter by its general agents in Puerto Rico, Fernández & Pérez, ordered that the defendant return the merchandise to dock No. 5, of San Juan, Puerto Rico.- The court then entered into further considerations to the effect that Fernández & Pérez were the general agents of the Cayuga Linen & Cotton Mills, Ina, and that even if the title had passed to the purchaser it would have devolved upon the vendor by the return of the goods and their acceptance by the vendor.

As a final conclusion the court said that the defendant was not obliged to accept the goods because the contract called for a delivery in November and they were not delivered until January, 1926.

[466]*466The appellant assigned several errors by reason of the failure of the District Court of Ponce to postpone the trial, and then proceeded to assign other errors to the effect that the judgment was against the evidence. It strikes us it would be slightly better if an appellant upon attacking the judgment as a whole for failing to folldw the evidence should make a greater specification. For example, that the evidence tended to show that the defendant accepted the goods and that any attempted return thereof was to its own agents, inasmuch as the Crédito y Ahorro Ponceño constituted Fernández & Pérez its own agents for the purpose of taking charge of the goods.

The appellant says that there was no evidence that Fer-nández &; Pérez were the agents of the complainant, but Mr. Fernández himself took the stand and gave evidence tending to show that he was such general agent.

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Cite This Page — Counsel Stack

Bluebook (online)
41 P.R. 462, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cayuga-linen-cotton-mills-inc-v-credito-y-ahorro-ponceno-prsupreme-1930.