Central Boca Chica, Inc. v. Treasurer of Puerto Rico

53 P.R. 826
CourtSupreme Court of Puerto Rico
DecidedNovember 17, 1938
DocketNo. 7783
StatusPublished

This text of 53 P.R. 826 (Central Boca Chica, Inc. v. Treasurer of Puerto Rico) 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
Central Boca Chica, Inc. v. Treasurer of Puerto Rico, 53 P.R. 826 (prsupreme 1938).

Opinion

Mr. Justice De Jesús

delivered the opinion of tbe court.

As shown by the pleadings, the facts in this case may.be summarized as follows: That Central Boca Chica, Inc., for the purpose of insuring its workmen during the fiscal year 1932-33, applied for and obtained from the Industrial Com[827]*827mission on October 25, 1932, policy No. 8294, baying agreed with tbe insurance assessor of tbe Industrial Commission, Mr. José Gr. Salgado, that tbe quota or premium would be paid in monthly installments commencing on October 81, 1932. That tbe plaintiff tended tbe first installment of tbe premium, amounting to $900, bnt tbe Treasurer of Puerto Rico demanded that tbe premium be paid quarterly in advance, and in accordance with that ruling returned to tbe plaintiff the check No. 7576 issued by plaintiff in favor of tbe Treasurer of Puerto Rico for tbe aforesaid sum of $900. That tbe situation remained tbe same until April 13, 1933, when, Central Boca Chica having passed into the bands of Wirshing & Co., S. en G., application was made for insurance in tbe State Fund until June 30 of that year, which was done by payment of tbe corresponding premium. That tbe defendant refused all offers of tbe plaintiff to pay tbe premium in monthly installments, and that on April 13, 1933, the defendant also refused to accept from plaintiff payment of tbe whole premium, with interest and surcharges, the position taken by tbe Treasurer being that by plaintiff’s failure to pay its quota or premium in advance, it bad become an uninsured employer and was obliged to pay not only tbe premium payable by an insured employer, but also tbe indemnities and penalties imposed by the statute upon all uninsured employers. Following out bis view, the Treasurer of Puerto Rico, through tbe collector of internal revenue, attached personal property of the plaintiff for tbe collection of $6,106.80, which includes tbe quota or premium plus surcharges and costs of attachment, collecting furthermore tbe sum of $10,086.50, which represents tbe various awards for labor accidents allowed and paid to various workmen employed by plaintiff during the period from October 14, 1932, to April 13, 1933. This sum includes also expenses of liquidation and surcharges. Notices of attachment were opportunely served on plaintiff, and tbe proper demands for payment of these liquidations were made by tbe Industrial Commission. •

[828]*828The essential facts of the two supplemental amended complaints are substantially admitted by the defendant. The parties disagree as to the legal effect of the facts. Plaintiff urges that policy No. 8294 was valid and that Mr. José G. Salgado, the insurance assessor of the Government, was authorized to agree to the payment of the premium in monthly installments, while defendant contends that the policy had no legal existence and that Mr. Salgado was not empowered to make the agreement contended for by plaintiff. In any event, the Treasurer of Puerto Rico rejected the policy and returned the first payment which plaintiff sought to make, and the policy No. 8294 in question was thus left without effect.

The lower court correctly stated the point in controversy when in its opinion it set out the problem in the following terms:

“The question of law to be decided in this suit is as follows:
• “Whether an uninsured employer, in addition to paying the awards to his employees for accidents occurring during the time when he was not insured, must also pay to the Treasurer of Puerto Rico the quota or premium for an insurance policy covering the same pei’iod of time during which the employer was not insured and during which the accidents occurred for which he has paid awards.”

After an analysis and comparison of the different sections of Act No. 85 of 1928 (Session Laws, p. 584) believed to be applicable, and after citing section 1043 of the Civil Code (1930 ed.), the trial court reached the following conclusion :

“That Central Boca Chica, Inc., was not required by any provision of Act No. 85 of 3928 to pay a quota or premium for the period of time during which it was an uninsured employer, that is, for the period from October 34, 1932, to April 13, 1933, and therefore the entire sum of $6,016.79 paid under protest by Central Boca Chica, Inc., to the Treasurer of Puerto Rico, appearing from receipt No. 334 of January 29, 1934, must be returned by the defendant to the plaintiff, together with interest thereon at the rate of 6 per cent per annum from the date on which the complaint was filed in this [829]*829court, that is, from October 2, 1934 (section 3 of Act No. 8 of April 19, 1927).”

Following the conclusion above quoted, judgment was entered adjudging the Treasurer of Puerto Rico to return to Wirshing & Co., 8. en C., as successors to all the rights and actions of the original plaintiff Central Roca Chica, Inc., the sum of $6,016.79 paid under protest by the latter company on January 29, 1934, together with interest thereon at the rate of 6 per cent per annum from the filing of the original complaint on October 2, 1934, without special imposition of costs.

Both parties have appealed from that judgment. Plaintiff has now moved in two successive motions which we shall consider together, to dismiss the defendant’s appeal on the following grounds:

1. Because the defendant did not adopt either the method of a transcript of the evidence or that of a bill of exceptions and statement of the case for the purpose of bringing before this court the evidence which the trial court had before it; nor has defendant agreed with plaintiff to use the transcript of evidence which it is intended to present in this case, defendant not having therefore in any way brought up to this court the evidence presented in the lower court.

2. Because the defendant’s appeal is frivolous, and

3. Because no brief has been filed within the time provided by the rules of this court.

Both of plaintiff’s motions were set for hearing, and both parties appeared on the 7th of the present month and argued orally in support of their respective contentions.

We shall consider separately in the order set forth the grounds for dismissal urged by appellee.

In making a summary of the pleadings we have set out the facts appearing therefrom and have stated that defendant has in substance admitted the essential allegations-of the complaint, leaving for us to decide, as did the judge [830]*830of the lower court, the question as to whether an uninsured, employer, in addition to paying the awards to Ms employees for accidents occurring during the time when he was not insured, must also pay the quota or premium for an insurance policy coveting the same period of time during which the employer was not insured and during which the accidents occurred for which he has paid awards. In other words, whether an uninsured employer may be regarded as a self-insurer for the period during which no policy was in force.

The whole controversy is reduced to a question of law. Since it appears from plaintiff’s own pleadings that the Treasurer rejected policy No.

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53 P.R. 826, Counsel Stack Legal Research, https://law.counselstack.com/opinion/central-boca-chica-inc-v-treasurer-of-puerto-rico-prsupreme-1938.