Font Manzano v. Suau, Fiol & Cía

50 P.R. 469
CourtSupreme Court of Puerto Rico
DecidedJuly 30, 1936
DocketNo. 7242
StatusPublished

This text of 50 P.R. 469 (Font Manzano v. Suau, Fiol & Cía) 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
Font Manzano v. Suau, Fiol & Cía, 50 P.R. 469 (prsupreme 1936).

Opinion

Mr. Justice Travieso

delivered the opinion of the Court.

The plaintiffs have filed a motion asking that the instant appeal he dismissed as frivolous. Let us first examine the facts.

On February 23, 1929, the mercantile partnership “Suau, Fiol y Compañía”, represented hy its managing partner and. Messrs. Pedro Antonio Suau Ballester and Matías Suau Ballester, caused the following to appear hy public deed:

1. — That the aforesaid partnership is the owner of an urban property, comprising a lot and a two-story building with machinery for grinding coffee, electric plant, etc., all valued at $40,000.
2. — That the other two appearing parties are the owners, the former of three rural properties of 12, 8y2 and 8 cuerdas, respectively ; and the latter of two rural properties, one of 53.83 and the other of 9 cuerdas of land.
3. — That the aforesaid partnership has made a loan with the Banco Industrial de Puerto Rico for $30,000, for which amount two promissory notes have been subscribed by Suau, Fiol y Cía. and by the two Messrs. Suau Ballester, payable to the creditor bank. In the first promissory note, the makers promise to pay jointly and severally to the bank or to its order, $25,000, value received on a loan to our entire satisfaction, and guarantee the fulfillment of the obligation expressly mortgaging an urban property belonging to the partnership Fiol, Suau y Cía. At the foot of the aforesaid promissory note, the notary states that the foregoing obligation is guaranteed by mortgage upon an urban property located in Lares.
4.- — The second promissory note is of the same tenor as the first and is signed by the same parties, who promised to pay jointly and severally to the bank $5,000, value received on a loan to our entire satisfaction. The fulfillment of the obligation is guaranteed by an express mortgage of the five rural properties belonging to Pedro Antonio and Matías Suau Ballester, as appears from a note of the notary at the foot of the document.
5.- — Paragraphs 5 and 7 of the mortgage deed read as follows: Fifth. — That in guarantee of the sum of $25,000, amount of mortgage note number one, here transcribed, interest thereon at the rate set forth in such note, plus an additional credit [471]*471of $1,000 for costs, disbursements and attorney’s fees in ease of legal action, the partnership Suau, Fiol y Cía. by its managing partner, the appearing party Betnardo Fiol Isern, constitutes a voluntary first mortgage in favor of tbe holders of the above-transcribed promissory note number one, upon the urban property described in paragraph one of this deed.” (Italics ours.)
“Seventh. — That to guarantee the sum of $5,000, amount of promissory note number two here described, interest thereon at the rate agreed upon in such note, plus an additional credit-of $200 for costs, disbursements and attorney’s fees in case of legal action, Pedro Antonio Suau Ballester and Matías Suau Ballester constitute a voluntary mortgage in favor of the holders of the promissory note number two here transcribed, upon the properties described in paragraphs second and third of. this deed.”

The Banco Industrial de Puerto Rico assigned both promissory notes to the Treasurer of Puerto Rico as collateral, such officer being the .present holder of such obligations. Both promissory notes having matured, the receiver of the bank and the Treasurer filed a complaint against the three signers of the notes. In the complaint two separate and distinct causes of action are set up.

In the first cause of action it is sought to foreclose by ordinary action the mortgage constituted by Fiol, Suau y Cía., upon the urban property located in Lares, guaranteeing the payment of the promissory note for $25,000; and-judgment is prayed for the amount of the promissory note, plus the sum of $8,679.45 as interest, plus costs, and it is further prayed that in case of failure to pay such sums the sale of the urban property guaranteeing the credit be ordered at public auction.

The second cause of action is a personal action against Pedro Antonio Suau Ballester and Matías Suau Ballester-as signers of the promissory note for $5,0.00, for the collection of such obligation; and judgment is prayed for in the sum of $5,000, interest, etc.

[472]*472A demurrer for failure to state a cause of action was overruled and the defendants answered the complaint, alleging:

1. — That the $25,000 represented by promissory note number one is part of a loan of $30,000 made by the bank to Suau, Fiol y Cía., to guarantee which the defendants constituted a mortgage upon the urban property in Lares and upon the five rural properties and signed moreover two promissory notes, one for $25,000 and another for $5,000.
2. — That neither in the deed constituting the mortgage nor elsewhere, was the responsibility of such properties divided, it being agreed upon the contrary in the deed that each and every one of the properties should answer for the whole of the credit, . . that is, for the $30,000.
3. — That the $5,000 represented by promissory note number two is part of a credit for $30,000 to guarantee which the defendants constituted a mortgage upon the urban property and upon the five rural properties and subscribed the two promissory notes.
4. — That the record of the mortgage is void for failure to state in any form the amount for which each one of the mortgage properties responds.

The district court entered judgment as prayed for. The defendants appealed.

The appellees have filed a motion in which they ask that the appeal be dismissed upon the ground that from the record of the case it appears that the appeal is frivolous and has been taken for the sole purpose of delaying execution of the judgment.

It is not immediately apparent that the appeal is frivolous, but it is easily so discovered from a critical study of the record and of the appellants’ brief. We have made such a study and it has convinced us that the appeal is without merit and is clearly frivolous.

Appellants’ theory is that there was only one mortgage loan for $30,000; that that loan was guaranteed by a mortgage upon six properties, one urban and five rural, and that the mortgage is void, because not only was the responsibility not distributed among the six mortgaged properties, as the [473]*473law requires, but the parties expressly agreed that each and every one of the six mortgaged properties would respond for the whole amount of the loan, in violation of the provisions of Sections 119 of the Mortgage Law, 164 of the Regulations and 1774 of the Civil Code (edition of 1930). To sustain that theory appellant tells us in his brief (pages 8 and 9) that:

“ . . . Prom an examination of such deed' it appears:

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50 P.R. 469, Counsel Stack Legal Research, https://law.counselstack.com/opinion/font-manzano-v-suau-fiol-cia-prsupreme-1936.