F. Rodríguez Hermanos & Co. v. Aboy de Cintrón

66 P.R. 498
CourtSupreme Court of Puerto Rico
DecidedJuly 26, 1946
DocketNo. 9176
StatusPublished

This text of 66 P.R. 498 (F. Rodríguez Hermanos & Co. v. Aboy de Cintrón) 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
F. Rodríguez Hermanos & Co. v. Aboy de Cintrón, 66 P.R. 498 (prsupreme 1946).

Opinion

Mb. Chief Justice Tbavieso

delivered the opinion of the court.

Fermín Rodriguez and his wife Matilde Lanza Martinez, by a deed of December 18, 1925, which was recorded in the registry of property, acknowledged having received, as a loan from Encarnación Aboy widow of Cintron, the sum of $25,000, which they bound themselves to repay in instalments as follows : $5,000 on December 18,1927, and the balance of $20,000 on a like day and month of 1928; said loan to bear interest at the rate of 10 per cent per annum until fully paid, the interest being payable at the end of each monthly period; and in order to secure the payment of the principal sum, the agreed interest thereon, and an additional debit item of $2,000 they constituted a mortgage on an urban property.

By a deed of December 11, 1928, which was also recorded in the registry of property, the above-mentioned mortgage contract was modified and extended as follows: The payment of the $25,000 was extended for a term of five years, counted from December 18, 1928, such payment to be made in annual instalments, thus: $2,000 on December 18, 1929; $3,000 on December 18 of each of the years 1930, 1931, and 1932; and the balance of $14,000 on December 18, 1933; the additional interest rate of 10 per cent was reduced to 9 per cent per annum payable at the end of each monthly period; and it was stipulated that the creditor reserved to herself the. right [501]*501to treat the term of the mortgage loan as expired in case of default in any of the conditions set forth in the mortgage deed.

F. Rodríguez Hermanos & Company, a commercial partnership, by a purchase deed of January 17,1929, acquired the mortgaged property and assumed the obligation to pay the $25,000 mortgage under the terms stated above.

By a private instrument executed on May 22,1930, Fermín Rodríguez and his wife Matilde Lanza Martinez, the partnership F. Rodríguez Hermanos & Company, represented by its managing partner Fermín Rodríguez, and Encarnación Aboy widow of Cintron, represented by her attorney-in-fact José Hernández Usera, agreed to extend and did extend to December 18, 1930, the term for the payment of the $2,000 instalment which had expired on December 18, 1929, under the same conditions set forth in the mortgage deed, except that interest at the rate of 10 per cent would be charged on said instalment. This private instrument was never embodied in a public deed and, therefore, it was not recorded in the registry of property.

The creditor, Mrs. Aboy widow of Cintron, on February 19,1932, instituted, in the District Court of San Juan, a summary foreclosure proceeding against F. Rodríguez Hermanos & Company, and alleged that the latter partnership was indebted to the mortgage creditor in the sum of $25,000 as principal and in the sum of $1,534.94 as interest from June 19, 1933, to February 18, 1932, including in this liquidation the additional 1 per cent interest on the annual instalment of $2,000 which became due on December 18, 1929, according to the stipulation set forth in the private extension agreement mentioned above. In order to secure the effectiveness of the judgment, on February 19, 1932, an attachment was levied on the rents and profits of the mortgaged property. The foreclosure proceeding followed the course provided by law, and in pursuance thereof, on April 21, 1932, said property was awarded to Encarnación Aboy widow of Cintron [502]*502for the sum of $22,000, which was applied in partial satisfaction of the mortgage claim, and the foreclosing creditor held possession of the property from the latter date until June 27, 1940, when she sold it to the Municipal Housing- Authority of the Capital of Puerto Rico.

F. Rodríguez Hermanos & Company, on September 14, 1943, brought the action herein against Encarnación Aboy widow of Cintron praying for the annulment of the aforesaid foreclosure proceeding on the following grounds:

(1) Because in the initial petition for foreclosure there was included a claim for additional interest of 1 per cent on the $2,000 instalment due on December 18, 1929, which claim was not secured by mortgage, since the same was agreed in a private instrument executed by the parties.

(2) Because in the assumption of liability the foreclosing creditor failed to bind herself to indemnify interested third persons for any loss or damage suffered by the latter in consequence of the mortgage foreclosure proceeding.

(3) Because the value of the property involved in the •foreclosure proceeding was not previously assessed in order to determine the minimum price at which it must be sold at public auction in accordance with the provisions of § 175 of the Mortgage Law Regulations, the Act of March 9, 1906, relative to the manner of satisfying judgments, being erroneously invoked and applied as a legal basis for the initial petition.

(4) Because the writ demanding payment which was served on the partnership, plaintiff herein, in the foreclosure proceeding is void, inasmuch as it is stated therein that the interest to be collected on the principal sum of $25,000, at the rate of 9 per cent per annum, from June 18, 1931, to February 18, 1932, amounted tó $1,534.94, when as a matter of fact said interest only amounted to $1,500, and thus cláim was made, for $34.94 in excess of the amount due.

In consequence of the alleged nullity, the plaintiff sought to recover the value of the mortgaged property at the time [503]*503the defendant took possession thereof which it estimated at $42,278, since the specific property conld not he returned inasmuch as it had been alienated in favor of the Municipal Housing Authority of the Capital of Puerto Rico, plus the rents and profits yielded by said property from February 19, 1932, to June 27, 1940, amounting to $45,100, and an additional sum of $550 monthly as damages, from June 27, 1940, to the date on which any judgment of recovery rendered in this ease might become final and enforceable, after deducting the amounts paid by the defendant as property taxes and adjudging the defendant to pay the costs, expenses, and attorney’s fees of the action; and it consented and further prayed that judgment by confession be rendered adjudging the plaintiff, F. Rodríguez Hermanos & Company, to pay to the defendant in this case, Encarnación .Aboy widow of Cin-tron, the sum of $25,000 as principal, amount due by virtue of the above-mentioned mortgage, plus interest thereon at the rate of 9 per cent per annum from June 18, 1931, to the date on which any judgment rendered in this case in favor of the plaintiff partnership might become final and enforceable, together with additional interest at 1 per cent on the annual instalment of $2,000 which had been extended pursuant to a private instrument, accruing from the latter date to that on which said judgment might become final.

The defendant filed her answer, admitting some ol: the averments of the complaint and denying others. She alleged that the mortgage foreclosure proceeding in. question was valid, and that no essential error had. been committed in the prosecution thereof; that the rents derived from the property involved in the proceeding, from 1932 to 1940, amounted to $34,812.39, and that she had paid during that period the taxes due on said property; that the reasonable value of the mortgaged property at the time the defendant took possession thereof was $25,992.05; and that in the event the foreclosure proceeding were annulled the plaintiff would not be entitled to the rents after June 27, 1940, since on the latter date the

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Bluebook (online)
66 P.R. 498, Counsel Stack Legal Research, https://law.counselstack.com/opinion/f-rodriguez-hermanos-co-v-aboy-de-cintron-prsupreme-1946.