Commercial Investment Co. v. Mayaguez Light & Power Co.

4 P.R. Fed. 267
CourtDistrict Court, D. Puerto Rico
DecidedAugust 22, 1908
DocketNo. 201
StatusPublished

This text of 4 P.R. Fed. 267 (Commercial Investment Co. v. Mayaguez Light & Power Co.) is published on Counsel Stack Legal Research, covering District Court, D. Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Commercial Investment Co. v. Mayaguez Light & Power Co., 4 P.R. Fed. 267 (prd 1908).

Opinion

Rodey, Judge,

delivered the following opinion:

The issue before us is on a rule against the respondent to show cause why he should not be punished as for a contempt of court for an alleged wrongful interference with property in the hands of a receiver. The facts out of which the matter arises are about as follows:

In the latter part of March, 1908, the Commercial Investment Company of Porto Rico filed its bill of complaint against the Mayaguez Light & Power Company, praying for the foreclosure of a mortgage which the former held upon the electric light and ice plants of the latter in said Mayaguez. On proper application, and a showing therefor, P. L. Cornwell was appointed receiver pending the foreclosure, and he immediately qualified,, took possession of all the property, and proceeded to act in the-premises. A proper order in that behalf was made, and all persons were commanded to turn over to him all of the property of the respondent corporation, and all persons were enjoined from interfering with him in any manner in his conduct of the business of said concern as is usual pending the foreclosure.

[269]*269In order to maintain the business as a going concern, in addition to running the electric light plant, it became necessary that the receiver should continue the manufacture of ice, and its ■sale and distribution in the city of Mayaguez, the same as the plant had theretofore been doing. However, either because the machinery was not in order, or for some other cause, the ice plant portion -of the property in question remained idle until about the 1st of August, 1908, when the receiver caused the same "to be started, having first made a contract with a certain firm named Remotti & Koppisch, in the city of Mayaguez, for the delivery to them of a certain large quantity of ice daily, which they immediately proceeded to distribute and sell on their own account. The respondent Dr. Isaac Gonzalez Martinez is the local health officer at Mayaguez, acting under the superior board of health of the island, at San Juan. On the morning of August 4th, 1908, some three or four days after the ice plant in question had started up and begun to distribute ice, he was driving through the streets, and saw some of it in the wagons both of the plant itself and of these distributers. Seeing, as he •claims, that some of it was opaque, he concluded it was impure, and condemned certain portions of it. Then he went to the plant, and there condemned some more; then he condemned twelve or fourteen blocks from the wagons, and brought them in the city building, so as to take samples from them, which he ■did, and finally, the next day sent a block of the ice, with two •or three sealed bottles of water obtained from melted portions •of it, to headquarters at San Juan for analysis. He claims that he called upon the receiver of the ice plant to witness the taking and preparation of these samples, but that the latter refused to attend. Then he caused a policeman, or several of [270]*270them, to go around to many people who had purchased the ice, and condemned portions of it in their possession. He did this during the whole of the 4th and 5th of August. lie claims that he had no knowledge that the plant was in the hands of a receiver, hut admits that, after he had condemned some of the ice, the receiver himself told him of that fact, and Mr. Remotti, one of the contractors for the distribution of the ice, testified that he was present when the receiver so informed the respondent. There was a good deal of evidence introduced, going to show that there was considerable feeling and bad temper manifested by one of those distributers of the ice, and perhaps, to some extent, even by the receiver, on the one side, and the-respondent health officer, on the other, and there was also evidence tending to show that the respondent health officer went around over the city, condemning the ice, both on the streets and at the plant, carrying a revolver with him, and, further, it was testified to, although he partially denies it, that respondent said, when notified that the property was in the hands of a receiver of this court, that he, respondent, did not care if it was, that the superior board of health was above the power of the court, and that he would do as he pleased, and that he was not, subject to any orders but those of his superior officers in the board of health.

The receiver, on the 6th of August, filed a petition for an order to show cause, which was duly verified, and supported it by about a dozen affidavits of as many different persons. It set forth that the ice thus condemned was nice, clear, crystal ice,, manufactured from distilled water by the best known processes, and that it was .as pure as ice can be, when properly so manufactured, and that respondent condemned it without first having; [271]*271liad any analysis of it made. These affidavits further set forth in great detail, and the proofs tended more or less in the same direction, that the respondent Avas not, in truth and in fact, actuated by any commendable desire to preserve the health of the community where he was thus acting as health officer, but Avas, in fact, acting from an unworthy motive of personal spite against the receiver, and against the contractors Avho were distributing the ice; and, further, that his actions were intentionally in the interest of a rival plant, with which some of the respondent’s friends were connected, and which latter plant, OAving to an accident to the machinery, had been shut down for a day or tivo previously, and the business of Avhich Avas being secured by the plant in question in the interim, and that respondent’s efforts were intended to thwart the efforts of the receiver to secure this neAV business, and to aid the other plant in saving it. Further, that the action of respondent was also in fact due to personal-pique and spite against the plant in question and its receiver, because he, respondent, had made a long, favorable scientific report some six months previously regarding it, when the quality of the ice had been questioned, and in which report he, respondent, had reported against the presence of bacteria in the ice, etc.; and that he Avas now trying to injure the plant because he had not been paid by the then proprietors for his services for making such report. That respondent was further moved to his wrongful acts because, after the plant had been put in the hands of a receiver, the former attempted to attach some of the funds due to it from one of its debtors, to secure compensation for his said previous favorable report on the ice, Avhich attachment the receiver prevented by securing a proper order of this court for its dismissal; and that, for this reason, [272]*272said health officer was venting his spite on the concern, now that he found himself vested with seeming power to do so.

It was further alleged in these affidavits, and the proofs, to some little extent, moved in the same trend, that, in addition, respondent was moved to this wrongful action for political reasons and motives. That political feeling in the district of Mayaguez was very high, and that, because the plant in question and its distributers were of the opposite political party from respondent, and the plant belonging to the opposition concern was in the hands of his political partisans and friends, he was endeavoring to aid them in this way, etc.

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Bluebook (online)
4 P.R. Fed. 267, Counsel Stack Legal Research, https://law.counselstack.com/opinion/commercial-investment-co-v-mayaguez-light-power-co-prd-1908.