Corporación Azucarera Saurí & Subirá v. Clavell

87 P.R. 601
CourtSupreme Court of Puerto Rico
DecidedMarch 8, 1963
DocketNo. 153
StatusPublished

This text of 87 P.R. 601 (Corporación Azucarera Saurí & Subirá v. Clavell) 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
Corporación Azucarera Saurí & Subirá v. Clavell, 87 P.R. 601 (prsupreme 1963).

Opinion

Mr. Justice Ramírez Bages

delivered the opinion of the Court.

By deed No. 67 of August 4, 1952, executed before Notary Public Leopoldo Tormes Garcia, the partnership Clavell e Irizarry and Corporación Azucarera Saurí y Subirá, appellee herein, entered into a contract for the grinding of cane and crop-loan advances. By virtue of that contract said partnership agreed to cultivate some 300 cuerdas of sugar cane in two farms, one of which was subleased and the other leased, and to deliver the cane at the batey of Central Cons-tancia, owned by appellee, during the crop seasons from 1953-54 to 1963-64, namely, during ten crop seasons. It was further agreed that during such crop seasons Central Cons-tancia would grant a crop-loan credit up to the sum of $10,800 for each crop season, plus two credits of $1,000 each to cover interest and costs, expenses, disbursements and attorney’s fees. Such credit would be guaranteed by a preferred lien on the plantations and the sugar produced by the cane in accordance with the Act on Contracts of Agricultural Advances and Grinding of Cane of March 10, 1910 (Sess. Laws, p. 119), as amended. In order to resolve the conflict between the parties in this case, it is well to make a review and subsequently an analysis of the agreements formally made by the parties in several public deeds admitted in evidence and which form part of the record.

[603]*603A. Subparagraphs B and G of the Sixteenth clause of the deed in question provide that:

“(B) In the event of nonperformance, in the opinion of ‘La Central,’ of the stipulations hereof on the part of ‘El Colono’, it is expressly agreed that ‘La Central’ may enter the lands described herein and cultivate, tend and harvest the cane thereon and process them into sugar and, to that end, to use the entire equipment which ‘El Colono’, may have devoted to those purposes, and to dispose of the sugar produced and retain for itself the liquidations or the amount thereof to cover any other debt which ‘El Colono’ may owe to ‘La Central.’
“(G) During the ten crop seasons referred to in the grinding contract ‘La Central’ may give to the Colono, for the financing of the farms involved in this contract, such amounts as in its judgment may be necessary for the planting and cultivation, cutting and hauling of the cane produced by said farms and which are comprised within the quota assigned to the CO-LONO and which may be ground by ‘La Central’ ; and ‘La Central’ may likewise, in the event of disability, death or absence of Cosme Irizarry, partner of the partnership Clavell e Iri-zarry, carry out the cultivation on all the farms which may belong at present or in the future to the partnership, for any account, at the expense of the Colono, in connection with all of which he will deal with the other partner Carlos C. Clavell ; and all amounts spent by the Central in such cultivation, up to the sum of Thirty Thousand Dollars ($30,000) in each crop season, shall be guaranteed as a preferred crop-loan credit in favor of ‘La Central’ over all the canes included in these contracts until such time as ‘La Central’ collects in full the principal and the interest accrued thereon at the rate agreed upon.”

B. The Seventeenth clause provides:

“The partnership Clavell e Irizarry (El Colono) recognizes that Corporación Azucarera Saurí y Subirá has delivered to partner Carlos C. Clavell diíferent sums of money prior hereto which have been spent in the preparation and cultivation of the farms leased and subleased by the partnership CLAVELL E Irizarry to the said Carlos C. Clavell, on which lands the said partnership has continued the cultivation in order to comply with the Grinding contract with ‘La Central.’ The sums thus delivered amount at present to FOURTEEN THOUSAND FIVE [604]*604Hundred Eighty-Three Dollars and Seventy-Five Cents ($14,583.75), which debt is assumed by the partnership to complete the amount of Thirty Thousand Dollars ($30,000), since ‘La Central’ delivers to the ‘Colono’ the Fifteen Thousand Four Hundred Sixteen Dollars and Twenty-Five Cents ($15,416.25) to complete that amount by check for that amount on its current account in the Banco Crédito y Ahorro Ponceño. . . . ‘El Colono,’ namely, the partnership Clavell e Irizarry, binds itself and agrees to pay to ‘La Central’ those Thirty Thousand Dollars ($30,000) referred to above within a period of Ten Years counted as of the date hereof in annual instal-ments of not less than Three Thousand Dollars ($3,000), together with interest accrued every year on those thirty thousand dollars at the rate of Six Per Cent (6%) annually. . . .”

C. By the Eighteenth clause the parties stipulated that:

“Carlos C. Clavell and Cosme Irizarry shall be liable solidarily for all obligations herein contracted by the partnership Clavell e Irizarry, constituted by them, in favor of Cor-poración Azucarera Saurí y Subirá, and they bind themselves severally in their private capacity with the said Corporación to furnish all those guarantees, whether mortgage or pledge, which the Central may require whenever in the opinion of the Central they are necessary to secure the collection of all amounts which ‘El Colono’ may owe to it, as stated herein.”

By deed No. 19 of September 13, 1954, executed before Notary Public Julio Viera Morales by appellee corporation Central Mercedita, Inc., appellants and third-party defendant Cosme Irizarry and his wife, the appellee assigned the said grinding contract to Central Mercedita, Inc., recognizing that in that moment the partnership in question and its managing partners Clavell and Irizarry owed to appellee, for the said financing, the sum of $27,000, plus interest. Central Mercedita bound itself to deduct and to pay annually, out of the amount of the liquidations of the partnership canes, and to deliver to appellee the annual instalments of $3,000, plus interest, as agreed upon in the seventeenth clause of deed No. 67 copied above, plus interest thereon. [605]*605D. The Fourth stipulation of deed No. 19 provides in part that:

“The parties make it clear that the Crop-Loan contract which the partnership Clavell e Irizarry has executed with Cor-poración Azucarera Saurí & Subirá has been rendered Ineffective, except for the provisions concerning ClavelTs and Iri-zarry’s outstanding debt to the said Corporación Azucarera Saurí & Subirá which on this day amounts to the aforesaid sum, a debt expressly recognized by the said debtors, as well as the personal guarantees of Carlos C. Clavell and Cosme Irizarry, those constituted as a preferred lien over the canes ... all of which is in favor of Corporación Azucarera Saurí & Subirá . . . the said Corporación Azucarera Saurí & Subirá likewise waiving in favor of Central Mercedita, Inc. all its rights, regardless of their nature, in the said cane-grinding contract which it had entered into with the partnership Clavell e Irizarry, as it appears from the aforesaid contract.”

E. Subparagraphs (b) and (c) of the Additional Clauses of the said deed provide that:

“(b) In order to comply fully with the covenants and conditions herein established, the partnership Clavell e Irizarry and its managing partners or successors hereby instruct and empower the appearing party Central Mercedita, Inc.

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87 P.R. 601, Counsel Stack Legal Research, https://law.counselstack.com/opinion/corporacion-azucarera-sauri-subira-v-clavell-prsupreme-1963.