Cooperativa Cafeteros de Puerto Rico v. Colón Torres

84 P.R. 267
CourtSupreme Court of Puerto Rico
DecidedDecember 21, 1961
DocketNo. 12478
StatusPublished

This text of 84 P.R. 267 (Cooperativa Cafeteros de Puerto Rico v. Colón Torres) 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
Cooperativa Cafeteros de Puerto Rico v. Colón Torres, 84 P.R. 267 (prsupreme 1961).

Opinion

Mr. Justice Dávila

delivered the opinion of the Court.

The Inspector of Cooperatives requested from “Cafeteros de Puerto Rico” an extensive report on the operations of said cooperative. The letter of the Inspector of Cooperatives appears as appendix to this opinion. “Cafeteros” prepared a document containing all the information requested, and its board of directors, at a first meeting, agreed to submit the report. At a subsequent meeting the directors reconsidered their former agreement and informed the Inspector of Cooperatives that they would not submit the report but that he could examine the document they had prepared containing all the information requested, and take note of whatever he deemed convenient. The Inspector did not accept and in[269]*269formed “Cafeteros” that it should mail a copy of the report to his office. “Cafeteros” failed to do so and after 30 days from the date the Inspector requested that the report be mailed to him, he fined it $5 for each day of delay in sending the report, up to a maximum of fifteen days. 5 L.P.R.A. § 912. “Cafeteros” appealed from this decision to the Secretary of Agriculture but the latter refused jurisdiction. It then filed the present petition for a declaratory judgment.

The question for decision as stated in the complaint is “whether or not the report requested ... is of the nature and character of those referred to in § 16 of Act No. 291 of 1946 [5 L.P.R.A. § 896].”

The above-mentioned provision states thus:

“Each association organized under this Act shall prepare and make an annual report setting forth the following:
(1) Name of the association.
(2) Principal place of business.
(3) A general statement of its business operations during the fiscal year, showing the shares paid and the number of shareholders, if a capital-stock association, or the number of members and the amount of the admission quota, if a non-stock association.
(4) The volume of business with members and non-members.
(51 A detailed report of expenditures and receipts.
(6) Statement of condition at the close of operations.
(7) Any other information which the Inspector of Cooperatives .. . may deem necessary.
Copy of this report shall be sent to the Inspector of Cooperatives of Puerto Rico and to the Department of Cooperatives of the Agricultural Extension Service of the University of Puerto Rico, certified by the president and the secretary of the association.
When a cooperative association shall [fail], without good excuse, to render to the Inspector of Cooperatives on the due date thereof the annual report mentioned in this section, or any other report requested by him...”

Upon deciding the question the trial judge held that “the request of the Inspector of Cooperatives of Puerto Rico.... [270]*270constituted an unreasonable exercise of his power to request special reports within the scope of § 16 of the Cooperative Act of Puerto Rico. An examination of the details contained in the aforesaid letter, together with the evidence presented during the trial, convinces us, in the first place, that even though the report is pertinent for the purposes of an inspection of the Association’s books by an agent of the defendant Inspector, the requesting of such a special report has no basis whatever from the standpoint of verification. That is, if "defendant’s purpose was to carry out an investigation of the report which had been originally submitted by the plaintiff, no benefit would be derived in requesting the same person who submitted the original report to submit a detailed report on the same matter. The veracity granted to the first report had necessarily to be exactly as that given to the detailed report because it had been rendered by the same person. In the second place, the fact of insisting that the information requested be given in writing and sent to the defendant by mail — despite the fact that plaintiff offered to provide the Inspector with the means to check the same — made the requirement unreasonable. It tended to compel plaintiff to reveal business secrets and confidential information such as the name of foreign coffee buyers and production costs.” (Italics ours.)

Before passing to consider the question presented in this appeal it is fitting to indicate that the Legislative Assembly has considered that cooperativism is permeated with great public interest. Hence, that upon approval of the General Cooperative Associations Act (Act No. 291 of April 9, 1946,.., 5 L.P.R.A. § 881 et seq.) it stated the following in the Statement of Motives:

“The practice of cooperative action in every aspect of our social and economic life, inspired in a philosophy of human' renovation, should constitute one of the most valuable and effective instruments for the solution of the global problem of the Island. In the first place, it can contribute to greater pro[271]*271duction of wealth as well as to a more equitable distribution thereof. In order to ensure, for example, increased purchasing power for the limited resources of our people, so that there may be a larger quantity of consumer goods available, as well as the enjoyment of more and better social and economic services, the purchase of articles for daily consumption and the rendering of the various services to the community should be organized, to the extent that circumstances will permit, in cooperative form.”

Implementing this policy, cooperatives have received special treatment from the Legislative Assembly. They have received benefits and advantages not given to other entities. Exemption from all taxes on real and personal property up to an assessed valuation of one hundred thousand dollars ($100,000), Act No. 291 of 1946, § 26 — 5 L.P.R.A. § 906, income tax exemption, id. <§, 27, 5 L.P.R.A. § 907; exemption from payment of municipal license taxes with regard to the volume of business done with their members, Act No. 81 of June 20, 1955, 5 L.P.R.A. § 918; sale of government real property to cooperatives without call for bids, Act No. 97 of June 24, 1960, 5 L.P.R.A. § 925; among others. A strict supervision in charge of the Inspector of Cooperatives has been established by law in exchange for the advantages granted, since, as stated in the afore-mentioned Statement of Motives “The efforts made thus far for the organization of cooperatives in Puerto Rico have suffered from five serious defects, to wit: ... 3. Lack of an adequate inspection system, both as to the accounting methods employed, as well as to the fulfillment by cooperatives themselves of the principles underlying cooperativism.”

Pursuant to the General Cooperative Associations Act of Puerto Rico, the Inspector of Cooperatives of Puerto Rico is the officer in charge of seeing that the provisions of the above-mentioned Act are complied with. Certain powers and regulations are imposed upon him — § 19, 5 L.P.R.A. § 899 — including the following:

[272]*272“a. To require the board of directors of the cooperative to correct the irregularities pointed out by the Inspector, or to call an assembly of members in order that said assembly may do it.
“b.

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Bluebook (online)
84 P.R. 267, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cooperativa-cafeteros-de-puerto-rico-v-colon-torres-prsupreme-1961.