Colón Villegas v. White Star Bus Line, Inc.

63 P.R. 332
CourtSupreme Court of Puerto Rico
DecidedMarch 31, 1944
DocketNo. 8730
StatusPublished

This text of 63 P.R. 332 (Colón Villegas v. White Star Bus Line, Inc.) 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
Colón Villegas v. White Star Bus Line, Inc., 63 P.R. 332 (prsupreme 1944).

Opinion

Mr. Chief Justice Travieso

delivered the opinion of the court.

Eegina Villegas Figueroa lost her life as a consequence of injuries sustained in a collision between a street car of the Porto Eico Eailway Light and Power Co. and a bus belonging to the White Star Bus Line, Inc. in which she was riding as a passenger. An action was brought against the White Star Bus Line, Inc. by the heirs of the deceased, and the District Court of San Juan rendered judgment on June 25, 1941, ordering the defendant corporation to pay the sum of $4,000.

In view of the fact that the defendant corporation did not pay the judgment rendered against it, the plaintiffs filed a “Motion to Summon Sureties,” wherein they prayed for an order requiring the Porto Eican and American Insurance Co. to appear and show cause why they should not be bound, as surety of the White Star Bus Line, Inc., to pay the judgment. The order was issued and the Porto Eican and American Insurance Co. answered, opposing the petition of the plaintiffs. The parties were heard on the questions raised and the surety, The Porto Eican and American Insurance Co., agreed that its liability.be determined within the suit and by the proceeding of “summons of the surety” used by the plaintiffs and that the matter be submitted to the consideration of the court on a stipulation of facts. The court by an order of March 23, 1943, granted the “Motion to Sum[334]*334•mon the Sureties,” and after deciding that the Porto Rican and American Insurance Co. was bound to pay the judgment entered in the action against the White Star Bus Line, Inc., by reason of the bond which it had furnished before the Public Service ■ Commission at the time of the accident which .gave rise to this suit, ordered said surety company to pay to the plaintiffs the amount of the judgment.

Peeling aggrieved by this order, the Porto Rican and American Insurance Co. took the present appeal to this court.

The facts, as stipulated by the parties, are, in brief, as follows:

On July 11, 1937, at the time of the accident the White Star Bus Line, Inc., was a public service company engaged in the transportation of .passengers within and. between the Municipalities of San Juan and Río Piedras, which had been authorized to render such service by franchise No. 586 of April 12, 1927. Paragraph 11 of said franchise reads as follows:

‘ ‘ Section 11. — Before entering upon the powers and duties of this franchise, the grantee shall provide a good and suitable surety bond as and additional security, issued by a casualty company legally authorized to do this class of business in Porto Rico, which bond shall be conditioned to respond for any final judgment rendered in - a competent court in favor of any person who suffers damage to his person or interests or to his heirs in ease of his death by reason of the maintenance or use of any bus of the grantee operated hereunder as a public carrier. Said bond shall be in a sum not less than fifty thousand (50,000) dollars, and shall be subject to the approval of the Public Service Commission, after’ examination by the Attorney General of Porto Rico as to form and execution. After its approval by the Public Service Commission, said bond shall be filed by the Secretary of said Commission.
“The Public Service Commission of Porto Rico reserves the right at any time to require a new bond and t.o fix the amount and conditions thereof, after hearing the grantee.”

[335]*335The bond furnished by the Porto Eiean and American Insurance Co., at the request of the White Star Bus Line, Inc., provides in its dispositive part thus:

“Therefore, we, ‘White Star Bus Line, Inc.,’ as principal, and ‘The Porto Eiean and American Insurance Co.,’ a corporation organized under the laws o'f Puerto Eieo, with its main office in San Juan, Puerto Eico, as surety, constitute ourselves, the former as such principal and the latter as surety, jointly and severally in favor of any person and we bind ourselves to pay up to the limit of $25,000, any compensation awarded by a competent court in a final judgment, for damages in his person or property or to his heirs in case of death, by reason of any accident due to the use of any of the motor vehicles .mentioned in the license granted by the Hon. Public Service Commission for the transportation of passengers between San Juan and Eío Piedras and between any other point within these two municipalities, as well as by reason of injuries or' damages caused by any vehicle of the ‘White Star Bus Line, Inc.’ and used for the service or inspection of the vehicles, engaged in the transportation of passengers; excluding the injuries, or damages, sustained by the chauffeurs, collectors, inspectors and/or any other employee used by the ‘White Star Bus Line, Inc.’ in said service of transportation, care, or inspection of said vehicles.”

This bond was approved by the Public Service Commission on July 26, 1928, and at the time of the accident the same was in force.

The Porto Eiean and American Insurance Co. contends that it is not liable for the judgment rendered against the White Bus Line, Inc., inasmuch as under the terms of the bond it is an indispensable requisite or condition precedent that a final judgment be rendered before any liability shall arise on the part of surety; and that in the case at bar the judgement of the court as well as that of the District Court of San Juan were rendered subsequent to July 11, 1938, on which date the bond was officially cancelled by the Public Service Commission. The surety further 'alleges that in the event that it were liable under the terms of the bond mentioned, no action lies against it until the plaintiffs proceed [336]*336to execute the judgment on the property of the defendant and to levy on defendant’s property; and that in the event that the surety were further liable for the judgment rendered in the present case, its liability would only extend to 50 per cent of the total amount, inasmuch as it was expressly stipulated so in the bond, the penultimate paragraph of which reads as follows:

"It is expressly stipulated that the Maryland Casualty Company of Baltimore, has issued, through its authorized agents in Puerto Rico, another bond for $25,000 (Twenty-five thousand dollars) for the same purpose and of the same nature as this document, and therefore any judgment, compensation or award of any kind by reason of injuries, or damages caused to any person who pursuant to and within the terms of law may, or should be entitled to, bring an action to recover from the Principal in this document, such claim, compensation or award, together with all the expenses and/or fees incurred or that might be incurred, shall be paid in proportion by each of the companies mentioned.”

The surety maintains that the suretyship contract on which the plaintiffs ground their claim was made between said surety company and the White Star Bus Lane, Inc., subject to the condition that a similar suretyship contract be issued and maintained in force between said White Star Bus Line, Inc., and the. Maryland Casualty Company and that said condition was violated and the Porto Bican and American Insurance Co. was relieved of all responsibility under said contract by reason of said violation because prior to the date of the accident which gave rise to the claim of the plaintiffs, the contract between the White Star Bus Line, Inc., and The Maryland Casualty Co.

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63 P.R. 332, Counsel Stack Legal Research, https://law.counselstack.com/opinion/colon-villegas-v-white-star-bus-line-inc-prsupreme-1944.