Cividanes Alonso v. Oben

13 P.R. Fed. 237
District Court, D. Puerto Rico·Decided December 19, 1923·No. No. 1634·Published

Opinion

Odlif, Judge,

delivered the following opinion:

In a somewhat famous letter written by Juan Salgado to the United States Veterans Bureau, he set forth at some length that he had received about half a dozen letters in regard to his plea for increased compensation, and that these letters were contradictory where they were not vague, and that they were vague where they were not contradictory, so that Juan found himself not only in a deplorable physical condition, hut that intellectually he was in a state of “nebulous confusion.” This last phrase describes accurately the mind of the present writer at the close of the argument of the present proceeding, which is a motion to remand to the Insular district court at Guayama a lawsuit which had been brought to this court by the counsel for Luce & Company, interveners.

In the first place, this court was puzzled to know why a proceeding, the only relief being that of an injunction, should [239]*239appear upon the law docket of this court. But it was explained that the reason was because it was labeled a lawsuit when originally brought in the Insular court. Counsel stated that in the Insular district courts there are only two dockets, one for criminal cases and one for cases not criminal. No distinction seems to he made between actions of an ordinary nature for damages arising either .out of contract or tort, and cases which in the Federal courts are regarded as purely upon the equity side of the docket. The reason of course is that for some reason, never yet made clear to me, juries are used in the Insular courts in the trial of serious criminal offenses, hut juries'are never used in any proceedings not criminal. Therefore, this proceeding, hearing the label of a lawsuit in the Insular court, naturally brought the same label with it when it was removed to this court. Thus, we see one cloud removed from the haze which surrounded this peculiar case.

Next we were-confronted with the proposition that the removal was improper and unauthorized because made by inter-veners, and that there could not be such a thing as an intervention in an action at law. This point, however, was clarified by the court being reminded that in any proceeding in the Insular district court of a civil nature any third party had the right to intervene. Therefore, I am obliged to hold, and do hold, that, inasmuch as Luce & Company had the absolute right to intervene while the ease was pending in the Insular district court, they became properly parties to the proceeding, and that they had the same rights after being permitted to intervene as if they had been made the original defendants.

■ We were then ■ confronted with the proposition, that, inasmuch as the plaintiff, being domiciled in Porto Rico, brought [240]*240this lawsuit originally against two defendants, also domiciled in Porto Rico, the cause was not removable to the Federal court, and that Luce & Company, even though they were permitted to intervene, did not acquire thereby a right of removal which the original defendants did not possess. But it appeared upon an examination of the record that these original defendants had filed disclaimers in the Insular district court, whereby they set forth that they had no interest whatever in the controversy; that any acts done by them which formed the basis of the complaint upon the part of the plaintiff were by orders of Luce & Company, the interveners, who employed said original defendants. Thereupon, it is argued that Luce & Company were the real defendants and that Oben & Vazquez had been made defendants in the original proceedings for the deliberate purpose of destroying the right of removal to the Federal court. It is not necessary to cite authorities showing that this cannot be done, but for the purposes of this case it now becomes necessary for this court to go into the question of good faith or bad faith on the part of the plaintiff in bringing his proceeding against Oben and Vazquez only. I am obliged to hold, upon the record as presented to me, the facts of which have been in no way denied, that Luce & Company comprise a limited partnership known in the local Spanish law as a Sociedad en Comandita, that they claim to own the real estate described in this proceeding, and that all of the members of the firm are domiciled outside of the Island of Porto Rico. It was argued by counsel for the plaintiff, that, inasmuch as this limited partnership was constituted in accordance with the laws of Porto Rico, it became an entity similar to a corporation, and that such entity was a citizen of the United States domiciled in Pprto Rico, and [241]*241that the domicil of the individual members of the firm'was immaterial. In support of this position, there is cited a decision of the supreme court of Porto Pico in the case of People v. Zayas, Insular district judge, reported in vol. 29 of the Decisions of the Supreme Court of Porto Pico, page 423 (and following), the opinion being written by Mr. Justice Wolf, and concurred in by the other four members of the court.

The answer to this contention, however, is complete when we examine the decision of the circuit court of appeals for the first circuit, opinion by Mr. Circuit Judge Bingham, in the case of Porto Pico v. Fortuna Estates, decided March 8, 1922, reported in 2Y9 Fed. page 500, whereby there was affirmed an opinion and a judgment of the Honorable Peter J. Hamilton, who was judge of this court before the present judge, in which he decided against the People of Porto Pico and in favor of the Fortuna Estates et al., holding that a limited partnership in Porto Pico has exactly the same status as an ordinary partnership, and where the jurisdiction of a Federal court of a suit against any partnership depends upon diversity of citizenship or domicil, the question is to be determined by the citizenship or domicil of the individual members, even though under the law of the place of its origin such partnership is regarded as an entity and may sue and be sued in its partnership name. The present judge had made the same ruling in the case of Mestre v. Pussell, which was a proceeding in equity carried by appeal to the circuit court of appeals for the first circuit and affirmed in another opinion by Mr. Justice Bingham, reported in the same volume of the Fed. at page 44.

Therefore, I am obliged to disregard the decision above cited of the supreme court of Porto Pico, and follow the two decisions [242]*242of the circuit court of ¿ppeals at Boston; and I hold, that, inasmuch as the members of the limited partnership entitled Luce & Company all reside outside of the Island of Porto Rico, and inasmuch as this limited partnership under the local law were allowed to intervene in the Insular court, and inasmuch as the original defendants have disclaimed, this case stands before me exactly the same as it would if it had been originally brought by the plaintiff, domiciled in Porto Rico, against Luce & Company, sole defendant, all domiciled outside of Porto Rico.

The remaining question for decision by me is whether this cause is removable upon the ground that the amount involved in the controversy is more or less than $3,000. It is contended by the plaintiff that the amount involved is less than $3,000, and it is contended by the intervener that the amount involved is greater than $3,000.

Of course, upon this motion I must be guided by the record, and the 5th paragraph of the petition for removal reads as follows': “That the parcel of land on which are situated the buildings belonging to the Succession of Mrs.

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