Creditors of Sánchez v. Estate of Díaz

12 P.R. 81
CourtSupreme Court of Puerto Rico
DecidedFebruary 21, 1907
DocketNo. 17
StatusPublished

This text of 12 P.R. 81 (Creditors of Sánchez v. Estate of Díaz) 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
Creditors of Sánchez v. Estate of Díaz, 12 P.R. 81 (prsupreme 1907).

Opinion

Me. Chief Justice Quiñones

delivered the opinion of the court. ,

Attorney José de Guzman Benitez, on behalf of the Estate of María Diaz, widow of Yeve, has applied to this Supreme Court for a writ of certiorari, requesting the District Court of the Judicial District of San Jnan to transmit to this Supreme Court the record of the proceedings in involuntary insolvency instituted against José Avalo Sanchez, alleged to be terminated, in order that this court may review the same, and, should it be necessary, reverse and annnl the proceedings opposed to the provisions of law, which are being followed by said district court in the prosecution of the aforesaid insolvency ease-, wherein it is also exceeding its jurisdiction to the serious detriment of the rights of the petitioners.

The facts upon which they base their petition are the following :

That by order of August 22, 1891, made by the former Court of First Instance of the District of San Francisco of this capital, on the petition of Vicente Baibas y Capó as, a creditor of José Avalo Sanchez, the latter was declared in involuntary insolvency, letters rogatory being issued to the [83]*83judge of first instance of the district of Humacao, at tlie petition of said Balbás, requesting tlie transmission to tlie court issuing tliem, for consolidation with tlie insolvency proceedings, of tlie record of the execution proceedings which. María Diaz, the widow of Yeve, had been prosecuting since the year 1889 against said Avalo Sánchez, for the recovery of a mortgage credit which he had acknowledged in her favor upon an estate belonging to him, called “Bello Sitio,” situated in the municipal district of Fajardo. The judge of Humacao refused this consolidation on the ground that execution proceedings directed only against the property mortgaged could not be consolidated with insolvency proceedings, and, furthermore, because the execution proceedings in question had been terminated by the order of sale made therein upon appeal, by the former Audiencia Territorial of this Island, directing the execution to be prosecuted until the property attached had been sold at auction.

That pursuant thereto, the compulsory proceedings against the “Bello Sitio” estate were prosecuted, and the latter was offered at public sale and awarded to the execution creditor, the widow of Veve, in payment of her claim for 10,939.34 pesos, the judge of first instance of Humacao, Rómulo Villaher-mosa, executing in her favor the proper deed of award before Hotary Marcelino Estevánez, which deed was recorded in the registry of property in favor of said widow of Yeve, she being thus put in possession of the estate sold at public auction.

Nothwithstanding the fact that the judge of first instance of the San Francisco court had admitted that the consolidation sought by Vicente Balbás, who had initiated the insolvency proceedings, did not lie, he subsequently reversed his action and again applied to the Humacao judge for the consolidation of the execution proceedings referred to, and the record having been transmitted to him without opposition on the part of the execution creditor, the widow of Yeve, inasmuch as the execution proceedings had-terminated and she [84]*84was in possession of the estate sold, the judge of San Francisco, by order of December 26, 1891, without granting her a hearing, declared null and void all the proceedings had subsequent to August 27, 1891, the day when the Humacao judge was first required to make the consolidation of the execution proceedings and, consequently, also declaring null and void the proceedings under which the public sale was held, the approval of the award, the liquidation of charges, the deed of award, the proceedings to give possession, and all the entries, made in the registry of property relating to the notice of attachment and the record of ownership of the estate of “Bello Sitio” made in favor of said widow of Veve. Notice of this decison'of the San Francisco judge was not served personally upon her, but the same was announced in open court.

That the order having issued to the Registrar of Property of ITumacao to make the cancellations decreed, the registrar refused to make them, on the grounds, among others, that the only court having jurisdiction to order the cancellation of the cautionary notice of the attachment was the court of that city and district, in accordance with article 84 of the Mortgage Law; and as to the cancellation of the records of ownership,, because the nullity of the title upon which the records had been made had not been declared in a final judgment rendered in a declaratory action, to which María Diaz, the widow of Veve, should have been a party, in accordance with articles 79, 82 and 83 of the Mortgage Law, the decisions of the Supreme Court of Spain-of February 7, 1868, and March 10,. 1873, and the decisions of the Director G-eneral of April 13, 1874, February 16, 1883, November 29, 1881, and July 1, 1886.

That as a consequence of its last decisions the San Juan court again ordered the attachment and custody of the estate of “Bello Sitio,” and appointed a receiver and administrator thereof, the attachment being carried out whereby the widow of Veve was deprived of the estate, and one Tomás García appointed the receiver and administrator thereof, under a bond of 2,000 pesos, which he had never furnished.

[85]*85That while all this was talcing place with respect to the administration of the estate of the insolvent, nothing had been done in the other proceedings relating to said estate, because neither had the creditors been called, nor any meeting been held, nor any attempt made to appoint receivers, nor had any steps been taken tending to show that insolvency proceedings were being prosecuted, and it is to be observed that, subsequently, the record of the proceedings relating to the administration of the estate of the insolvent, and the initial proceedings thereof, disappeared, as well as the record of the original proceedings of a declaratory action, prosecuted and lost by Avalo Sánchez, seeking the nullity .of the execution proceedings.

Under these circumstances, on April 6, 1900, Vicente Bal-bás y Capó, the only creditor who had instituted the insolvency proceedings, presented a statement to the former District Court of San Juan, abandoning the prosecution of the insolvency proceedings, which statement was also signed by the insolvent as an evidence of his agreement to the discontinuance, upon which statement an order was made on the 23d of said month of April, conceived in the following terms:

“Considered, let it be ratified, and a decision will be rendered;” and Vicente Balbás having ratified it on the same date, the district court made a new order on the same date holding Vicente Balbás to have abandoned and discontinued the prosecution of the insolvency proceedings to his prejudice, and with the costs. Notice of this, decision was served on the latter on the 10th of the following month of May, since which date no steps whatever were taken looking to the continuation of the insolvency proceedings.

That on May 4, 1901 — that is to say, the'following year— Attorney José de G-uzmán Benitez presented a petition to the district court on behalf of the widow of Veve, alleging that inasmuch as Vicente Balbás, who had instituted the insolvency proceedings and was the only known creditor of the insolvent, had withdrawn from the prosecution thereof, and the court [86]

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Cite This Page — Counsel Stack

Bluebook (online)
12 P.R. 81, Counsel Stack Legal Research, https://law.counselstack.com/opinion/creditors-of-sanchez-v-estate-of-diaz-prsupreme-1907.