Fisher & Porter De Puerto Rico, Inc. v. ITT Hammel-Dahl/Conoflow

369 F. Supp. 638, 1974 U.S. Dist. LEXIS 12466
CourtDistrict Court, D. Puerto Rico
DecidedJanuary 31, 1974
DocketCiv. No. 373-73
StatusPublished

This text of 369 F. Supp. 638 (Fisher & Porter De Puerto Rico, Inc. v. ITT Hammel-Dahl/Conoflow) 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
Fisher & Porter De Puerto Rico, Inc. v. ITT Hammel-Dahl/Conoflow, 369 F. Supp. 638, 1974 U.S. Dist. LEXIS 12466 (prd 1974).

Opinion

MEMORANDUM OPINION AND ORDER

CANCIO, Chief Judge.

This cause of action arises under the provisions of controversial Act No. 75 of June 24, 1964, as amended, of the Commonwealth of Puerto Rico, 10 L.P.R.A., Sec. 278 et seq., which was authoritatively interpreted by the Commonwealth Supreme Court and declared invalid as applied to contracts executed before the date of its enactment. Warner Lambert v. Tribunal Superior, No. 0-72-106, decided on May 9, 1973. A decision has to be rendered yet involving the prospective application of Law 75. All cases of this kind before this Court have been ordered “stayed” until final pronounce[639]*639ment is had by the Commonwealth Supreme Court.1

After this Court’s order of February 12, 1973 (Simcox v. Kramer, Civil No. 898-72), certain procedures are allowed which do not fall under the “instructions to hold its hand until the (Commonwealth) Supreme Court has authoritatively ruled on the local law question in light of the federal claims.” 2 A complete stay is therefore not required and discovery proceedings found to be not inconsistent with the order are permitted. Said order clarified that “this order be understood to authorize only continuing discovery proceedings and not to affect any substantial rights of any party to an action . . . ”3 (Emphasis Supplied).

Discovery is thus understood as an exception or as not falling within the stay order, since the philosophy behind such an exception is that the discovery procedures and methods are to better provide and expand the facts and details of the action and to help the parties with a better preparation and organization for trial, not contributing in essence to the final outcome of the action.

In reference to the stay order of Fornaris, and confronted with peripheral proceedings in an action which do not affect the substantive rights of any party, this Court felt it wise not to completely paralyze such tangential preliminary steps, thereby preventing later congestion in the courts. In view of this, any subsequent action or proceedings in all Law 75 cases must be carefully studied to assure that the spirit of Simcox, supra, as well as of Fornaris, supra, be followed. The Court must guard against possible violations to Simcox or Fornaris in the guise of discovery proceedings, or otherwise, supposedly not affecting substantive rights. Such proceedings must be matched and contrasted with the holding of February 12, 1973, and accepted or rejected if not in line with it.

If the proceedings involve any action by the Court which would tend to accelerate a disposition of the case on the merits, they cannot be officially endorsed by the Court.

In the ease at bar, plaintiff filed a motion on June 5, 1973, requesting that SO days be granted to Defendant to plead and/or answer. This Court so ordered on June 29, 1973 (Order by Judge Jose V. Toledo). The defendant responded with a Motion to Stay, but later attached a Motion to Dismiss, when plaintiff opposed the Motion to Stay relying on Simcox, supra.

Defendant insists that his Motion to Dismiss, which we deem to be in the nature of a Motion to Dismiss for failure to State a Claim upon which relief can be granted as contemplated by Fed.R.Civ.P. 12(b)(6), must be decided or acted upon by the Court before he may be required to file a responsive pleading to the complaint.

A look at the language of Rule 12(b)(6) might furnish a proper guide to a disposition of defendant’s contention. The Rule in question specifically provides, in pertinent part, as follows:

“Every defense, in law or fact, to a claim for relief in any pleading, . shall be asserted in the responsive pleading thereto if one is required, except that the following defenses may at the option of the pleader be made by motion: (1) .... (2) .... (3) .... (4) .... (5) (6) failure to state a claim upon which relief can be granted . ... ” (Emphasis Supplied).

[640]*640Thus the Rule grants the pleader, in our case the defendant, an option or a choice in the manner in which he may attack the sufficiency of the complaint on its face. Is the Court bound to decide the Motion to Dismiss one way or another when defendant exercises his option as contemplated by Rule 12(b) before he may be required to file a responsive pleading such as an answer? In order to answer this question, we must look into Rule 12(a)(1) governing the timing of a responsive pleading such as plaintiff seeks here from defendant. Rule 12(a) provides that the service of a Rule 12 Motion alters the periods normally established to answer the complaint, as follows:

“(1) if the court denies the motion or postpones its disposition until the trial on the merits, the responsive pleading shall be served within 10 days after notice of the court’s action” .... (Emphasis Supplied) .

Thus, it is recognized that the Court has discretion to decide or to postpone until trial a Motion to Dismiss for failure to state a claim upon which relief can be granted.

However, we think that such a course of action by the Court presupposes that the case wherein the motion to dismiss has been made will be set for trial with reasonable promptitude and in the near future. It also presupposes the Court’s present ability to set the ease for trial on the merits. Such is not the case in this post-1964 Law 75 Suit nor in any other post-1964 suit pending in this Court, and premised exclusively on the Cause of Action in tort created by Law 75.

In Fornaris v. Ridge Tool Company, supra, Note 1, the Supreme Court of the United States remanded the case to the Court of Appeals for the First Circuit, to be in turn remanded to this Court with “instructions to hold its hand until the Supreme Court has authoritatively ruled on the local law question in light of the federal claims.” 400 U.S. at 44, 91 S.Ct. at 158. As the Simcox case, supra, at p. 639, made clear, “the underlying premise of Fornaris is that the highest court of Puerto Rico be given the opportunity to construe Law 75 in a manner not repugnant to the federal constitution.” Obviously, even though most, if not all, Law 75 cases are brought into this Court because of diversity of citizenship, they are not the ordinary type of case in which the Court has to construe and use as a Rule of decision a Commonwealth law otherwise valid. The challenge here goes to the very roots of the power of the Commonwealth Legislature to enact such a statute under both the Federal and the Commonwealth Constitutions. Principles of comity and federalism inherent in the judge-made doctrine of abstention have found their way into these apparently innocuous diversity cases, and the Supreme Court has recognized this in Fornaris.

A constitutional challenge such as is posed here is not a trifling matter, especially when it has been considered to be of sufficient substance as to be upheld by one Court4 and held in abeyance by a higher Court. When in Simcox this Court authorized discovery proceedings to continue in Law 75 cases, it echoed the importance of not giving rise to any contention that it might, either explicitly or implicitly,

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369 F. Supp. 638, 1974 U.S. Dist. LEXIS 12466, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fisher-porter-de-puerto-rico-inc-v-itt-hammel-dahlconoflow-prd-1974.