Figueroa-Olmo v. Westinghouse Electric Corp.

616 F. Supp. 1445
District Court, D. Puerto Rico·Decided September 11, 1985·No. Civ. 82-2518CC, Civ. 82-2828CC·Published·Cited by 11 cases

Opinion

OPINION AND ORDER

CEREZO, District Judge.

A traffic accident m which four persons lost their lives when the truck they were riding in collided with a trailer that was crossing a highway near the outskirts of metropolitan San Juan is the subject of the present consolidated actions for damages brought by forty relatives of the deceased against the owner of the trailer, Westinghouse Electric Corporation (Westinghouse). Federal jurisdiction is premised on diversity of citizenship between plaintiffs, residents of Puerto Rico, and defendant, resi *1446 dent of Pennsylvania, 1 for a claim in excess of twenty-seven million dollars. 2 Presently before us are sundry motions to review, oppose or adopt an Opinion and Order issued by Magistrate Arenas on July 30, 1984 regarding the possibility that joint representation of all plaintiffs, except for Milagros Contreras Merced, 3 by the law firm of Naveira-Rodon 4 may pose a conflict of interest situation. Another set of motions addresses the Report and Recommendation issued on September 28, 1984 in which the Magistrate recommends that Westinghouse’s partial motion for summary judgment be granted and that plaintiffs’ motions to dismiss the counterclaim and third-party complaint be denied. The Westinghouse motion requested that these plaintiffs who are also heirs of the deceased and who have filed claims as heirs on behalf of the estate be declared to have implicitly accepted the • inheritance. In a well-documented Opinion and Order the Magistrate determined that there existed the possibility of a conflict of interest, but that it could be surpassed if the attorneys involved made a full disclosure to their clients and these accepted being jointly represented by them.

Before determining whether the Magistrate’s ruling on the conflict of interests matter is correct, it is necessary to consider the procedural and factual framework of this case. In the original complaint filed on October 19, 1982 and in the first amended complaint of November 18, 1982 those .plaintiffs who also were heirs of the deceased made claims as representatives and on behalf of the estates of their respective decedents. In the consolidated action filed by Milagros Contreras-Merced, Civil 82-2828, Westinghouse filed a counterclaim on January 31, 1983 to set-off the percentage of negligence that could be attributed to her deceased husband, one of the passengers riding in the front seat of the truck that collided with its trailer. In this same case, Westinghouse filed a third-party complaint against all forty plaintiffs in Civil 82-2518 for contributory negligence and to set-off whatever amounts it may be ordered to pay plaintiffs in proportion to the degree of negligence that may be attributed to the decedents. 5 The third-party *1447 action also included Evelester Noriega-deCortez, her husband Dr. Gilberto Cortez-Figueroa and their conjugal society and the Puerto Rico Highway Authority as possible tortfeasors. 6 Third-party defendants (plaintiffs in Civil 82-2518) acknowledged receipt of the third-party complaint. Meanwhile, the plaintiffs in Civil 82-2518 filed answers to interrogatories during the first week of March 1983 where those who were also heirs of the deceased answered, under oath, that they were making claims on behalf of the estate. 7 On March 21, 1983, plaintiffs in Civil 82-2518 filed a second amended complaint which incorporated by reference all their previous claims on behalf of the estate but increased the amount of damages of several of them from the hundred thousands to the millions. The ehange was apparently requested and granted in a previous status conference before Magistrate Castellanos. On March 25, 1983, Civil 82-2828 was consolidated with Civil 82-2518. On April 12, 1983 plaintiffs in Civil 82-2518 filed an informative motion stating that they had misnumbered the paragraphs of their complaint, that they wished to increase the amount of damages and that in order to dispel any confusion they tendered a second amended complaint which included these changes, with correctly numbered paragraphs.

A close review of this second amended complaint reveals that it is more than a simple amendment of the amount of damages and a numerical correction. The claims on behalf of the estate were dropped and the caption was changed to eliminate the reference to plaintiffs as representatives of the estates. Plaintiffs in Civil 82-2518 now claimed only in their individual capacities for their own suffering and for loss of financial support, in the case of those who were dependents of the deceased. None of this was explained in the informative motion filed on April 12, 1983. Westinghouse answered the second amended complaint on April 18, 1983 and asserted counterclaims for set-off on the contributory negligence of plaintiffs’ decedents. On April 28, 1983 it also filed a third-party complaint against the other third-party defendants in Civil 82-2828, the Cortez and the Puerto Rico Highway Authority, based on the same claims asserted in their third-party action against them in Civil 82-2828. 8 The tendered complaint was ordered filed on April 21, 1983.

*1448 On May 2,1983 those who were plaintiffs in Civil 82-2518 and third-party defendants in Civil 82-2828 filed a motion to dismiss Westinghouse’s third-party complaint in Civil 82-2828 and on May 10 a motion to dismiss Westinghouse’s counterclaims in Civil 82-2518. Both motions were based on the same grounds. 9 Thereafter, the parties continued to argue both motions on identical grounds but in dual filings which in turn were photocopied so that the dual filings could be made in each of the two consolidated cases. The end result is a record approximately twenty inches high.

The ground for dismissal of the counterclaims is that under Puerto Rican law a victim’s negligence cannot be attributed to a claimant. Westinghouse countered saying that its claims were only against those plaintiffs who are also legal heirs of the decedents. 10 Westinghouse contends that these heir-plaintiffs implicitly accepted their decedent’s estate, with its assets and liabilities, by filing the initial complaints and in their sworn answers to interrogatories reasserting their claims on behalf of the estate. This argument triggered a motion by Westinghouse seeking partial summary judgment on the issue of the acceptance of the estate. In the midst of this, Westinghouse raised the possibility of a conflict of interests due to the joint representation of plaintiff heirs and non-heir plaintiffs. This brought on a burst of activity that added inches to the file of these consolidated cases.

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

Figueroa-Olmo v. Westinghouse Electric Corp., 616 F. Supp. 1445 (prd 1985).

616 F. Supp. 1445 (Figueroa-Olmo v. Westinghouse Electric Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Hill v. Culebra Conservation & Development Authority
599 F. Supp. 2d 88 (D. Puerto Rico, 2009)
Inmates of the Rhode Island Training School v. Martinez
465 F. Supp. 2d 131 (D. Rhode Island, 2006)
INMATES OF THE RI TRAINING SCHOOL v. Martinez
465 F. Supp. 2d 131 (D. Rhode Island, 2006)
Combustion Engineering Caribe, Inc. v. Geo P. Reintjes Co.
298 F. Supp. 2d 215 (D. Puerto Rico, 2003)
United States v. Hicks
52 M.J. 70 (Court of Appeals for the Armed Forces, 1999)
Lease v. Rubacky
987 F. Supp. 406 (E.D. Pennsylvania, 1997)
Guillen v. City of Chicago
956 F. Supp. 1416 (N.D. Illinois, 1997)
Davila v. Asset Conservation, Inc.
147 F.R.D. 12 (D. Puerto Rico, 1993)
Para Technologies Trust v. Commissioner
1992 T.C. Memo. 575 (U.S. Tax Court, 1992)
County of Suffolk v. Long Island Lighting Co.
710 F. Supp. 1407 (E.D. New York, 1989)
United States v. Walsh
699 F. Supp. 469 (D. New Jersey, 1988)