Empress Hotel Inc. v. Puerto Rico

218 F. Supp. 2d 189, 2002 U.S. Dist. LEXIS 16473, 2002 WL 1974547
CourtDistrict Court, D. Puerto Rico
DecidedAugust 9, 2002
DocketCivil 95-2057(JAG)
StatusPublished
Cited by1 cases

This text of 218 F. Supp. 2d 189 (Empress Hotel Inc. v. Puerto Rico) 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
Empress Hotel Inc. v. Puerto Rico, 218 F. Supp. 2d 189, 2002 U.S. Dist. LEXIS 16473, 2002 WL 1974547 (prd 2002).

Opinion

OPINION AND ORDER

GARCIA-GREGORY, District Judge. 1

Plaintiffs Carl Palermo (hereinafter, “Palermo”) and Empress Hotel (hereinafter, “Empress”) (collectively, “plaintiffs”) filed this Complaint on August 23, 1995. 2 On September 29, 1995, plaintiffs filed an amended Complaint. (Docket No. 49.) Co-defendant, Commonwealth of Puerto Rico, filed a motion to dismiss on August 25, 1998. (Docket No. 60.) On October 7, 1998, plaintiffs voluntarily dismissed their claim against the Commonwealth. (Docket No. 66.) On November 4, 1998, Judge Casellas issued a partial judgment dismissing all claims against co-defendant Commonwealth. (Docket No. 67.) On February 28, 2001, plaintiffs filed a second amended Complaint. (Docket No. 137.) Plaintiffs now seek equitable relief, inter alia 3 , for due process and equal protection *191 violations against defendants the Commonwealth through its Planning Board, the Regulations and Permits Authority (hereinafter, “ARPE”, its Spanish Acronym), and ARPE’s former director, Eleazar Garcia Marrero (hereinafter, “Garcia”) in his personal capacity. The Commonwealth and Garcia in turn have filed a motion to dismiss based on res judicata because of the partial summary judgment entered by Judge Casellas dismissing all claims against the Commonwealth and because the pertinent statute of limitations on the claims against García has run. (Docket No. 141.) The Court referred this motion to Magistrate Judge Justo Arenas for a Report and Recommendation. On November 29, 2001, Magistrate Judge Arenas recommended that the Court grant defendants’ motion (Docket No. 155). On December 14, 2001, plaintiffs filed objections to the report and recommendation (Docket No. 158). 4

Pending before the Court are plaintiffs’ objections to Magistrate Judge Arenas’s Report and Recommendation. Specifically, plaintiffs object to: (1) the Magistrate Judge’s recommendation that plaintiffs’ claims for equitable relief against the Commonwealth be barred because of res judicata; and (2) that the claims against Garcia be barred because of the one-year statute of limitations set forth in P.KLaws Ann. tit. 31, § 5298 (1990).

After careful review of the Magistrate Judge’s Report and Recommendation (Docket No. 33), the Court ADOPTS it in its entirety.

FACTUAL BACKGROUND

On January 30, 1989, the Planning Board approved the re-zoning of the area where the Empress is located from an RT-5 zoning classification (tourist zone) to an RT-4 zone. The re-zoning would turn the areas adjoining the Empress from high-density to low-density, which would restrict the Empress’s music and dance activities. (Docket No. 137, Second Amended Complaint ¶¶ 13-15.) Following the rezoning, the municipality of Carolina sought preliminary and permanent injunctive relief in the Puerto Rico Superior Court against the Empress’s music and dance activities relying on defendant Garcia’s representation. 5 Municipio de Carolina v. Empress Hotel, Civil FPE89-0213 (JR) (hereinafter, “the Carolina case”). Based on Garcia’s representation, the Carolina court granted the request for an injunction. The injunction would allow plaintiffs to operate a guesthouse with soft music if they obtained a special permit from ARPE. Plaintiffs sought reconsideration, and later certiorari before the Puerto Rico Supreme Court, to no avail.

Plaintiffs thereafter tried to obtain a special permit from ARPE, as required by the Carolina Court. In 1992, during the course of obtaining the permit the Carolina court required, ARPE agents allegedly told plaintiffs they could have music and dance at the Empress without a separate permit. Nonetheless, on July 13, 1992, ARPE denied the request and determined “that plaintiffs’ property (Empress) was located on a lot zoned as (RT-5), according *192 to the current Carolina map” and concluded that “plaintiffs’ proposed use (for music and dance) was prohibited in ‘RT-5’ zones.” (Docket No. 137, Second Amended Complaint ¶¶ 78 and 82.) ARPE’s permit denial also cited additional violations for the improper use of signs, terraces, and parking lots at the Empress. Palermo contends that ARPE’s permit denial was arbitrary and motivated by his Italian-American ethnicity.

As a result of ARPE’s denial, plaintiffs pursued an administrative appeal. In August, 1993, ARPE denied the appeal on the grounds that the plaintiff had operated a swimming pool, a terrace with bar, and a music and dance area without authorization. (Docket No. 137, Second Amended Complaint ¶¶ 79-89.) As a result of the administrative appeal denial, plaintiffs filed suit in Federal Court on August 23, 1995, while still awaiting ARPE’s grant of a final permit for music and dancing, as required by the Carolina injunction.

In June, 1995, the plaintiffs’ private investigator reviewed the Planning Board’s file related to the zoning resolution pursuant to which plaintiffs’ property had been changed from an RT-5 zone to an RT-4 zone classification and determined that documents required by law were missing from the file. It was during this investigation that plaintiffs allegedly discovered a conspiracy to violate their civil rights by the Commonwealth, through its Planning Board, its director, Patria Custodio, as well as ARPE, García, Municipio de Carolina and its mayor José Aponte de la Torre.

On October 26, 1996, the new ARPE regional director granted plaintiffs a use permit for the operation of a night club, cabaret, restaurant, dance area, hotel, and related uses in the RT-5 district. Palermo contends that notwithstanding the permit, the zoning map continues to show the Empress is zoned as RT-4. (Docket No. 137, Second Amended Complaint ¶¶ 97-99.)

DISCUSSION

I. Standard of Review

A district court may, on its own motion, refer a pending matter to a United States Magistrate Judge for a report and recommendation. See 28 U.S.C. § 636(b)(1)(B); Fed.R.Civ.P. 72(b); Rule 503, Local Rules, District of Puerto Rico. Pursuant to Federal Rule of Civil Procedure 72(b) and Local Rule 510.2, the adversely affected party may contest the report and recommendation by filing written objections “[wjithin ten days of being served” with a copy of the order. 28 U.S.C. § 636(b)(1). The Court must then make a de novo determination of those portions of the report or specified proposed findings or recommendations to which objection is made. See United States v. Raddatz, 447 U.S. 667, 673, 100 S.Ct. 2406, 65 L.Ed.2d 424 (1980); Lopez v. Chater, 8 F.Supp.2d 152, 154 (D.P.R.1998).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

López-Sánchez v. Vergara-Agostini
359 F. Supp. 2d 48 (D. Puerto Rico, 2005)

Cite This Page — Counsel Stack

Bluebook (online)
218 F. Supp. 2d 189, 2002 U.S. Dist. LEXIS 16473, 2002 WL 1974547, Counsel Stack Legal Research, https://law.counselstack.com/opinion/empress-hotel-inc-v-puerto-rico-prd-2002.