Fortuna Estates v. Henna

8 P.R. Fed. 638
District Court, D. Puerto Rico·Decided May 18, 1916·No. No. 970·Published

Opinion

HamxltoN, Judge,

delivered the following opinion:

Before discussing the merits of'the case, it is necessary to consider preliminary objections as to parties and the nature of the relief sought.

1. It is alleged by the respondents that they own only the reversion of one half of the property, and that the other owners are not yet made parties. Equity rule 73 is invoked to show that notice of an application for preliminary injunction must be given to the opposite parties. It does not seem, however, that this is applicable. In some cases a preliminary injunction could not be obtained in time to do any good if the plaintiff had to wait for absent defendants to be brought in by publication. The rule must be construed as relating to parties who are in court. And, moreover, the parties who are in court seem to [647] be tbe substantial defendants. Defendant Parra may not be an owner, but be is a proper, if not a necessary, defendant in that he is the active representative of the absent defendants, is in the actual control of the properties to which it is alleged the water is being diverted, and is the very person by whom the obstructions complained of were placed in the Jacaguas river, which resulted in the diversion of the water. The office of a preliminary injunction is to preserve the status quo until the court may grant permanent relief upon the final hearing. It does not appear that anything except a continuation of the alleged injury will be effected by waiting until other defendants are made parties.

2. The same is true of the contention that the People of Porto Rico or the Commissioner of the Interior should be named as a party defendant. The People of Porto Rico have been held in civil cases to be quasi sovereign so far as concerns process of courts, and a delicate question would arise as to making them a party. It is probably true that the same result would follow in making the Commissioner of the Interior a party, inasmuch as he would come in in a purely representative capacity as representing the People of Porto Rico. However this may be, it is not necessary. The plaintiff has or has not certain rights under its contract with the People of Porto Rico, and these rights will or will not be enforced, as the case may be. The People of Porto Rico have not put obstructions in the Jacaguas river or rebuilt intakes in such a manner as to take off water which belongs to the plaintiff. The People of Porto Rico have authorized the defendants so to do, but the act of the defendants was their act alone. Whether they can call on the People of Porto Rico to defend the suit is a matter which does not at [648] present arise. Somewhat the same question was presented in the suit of Insular Dock Co. v. P. J. Carlin Constr. Co. ante, 24, where conflicting contracts had been made by the Secretary of War. It was there held that it was a question of existing rights, regardless of the source from which those rights were obtained, and that litigation should proceed between the private parties claiming those rights. While not the same, it is not unanalogous to a case where legal rights are derived directly from the government, as in the case of conflicting patents. The litigation here, however, is not between a party and the government, but between the individuals having the conflicting claims. There is no reason in such case for joining the government as a party, even if the government were subject to suit. If the government should seek to intervene, its application would be carefully considered.

3. The object of the bill in this cause is to restrain certain acts which are alleged to result in irreparable damage to the plaintiff. The damage complained of is injury to plaintiff’s growing sugar cane, upon which depends the value of the property involved in this litigation. Theoretically it might be possible to compensate the plaintiff for such loss by the payment of money, but practically it is not possible to do so. Almost all property in the world can be estimated in money value, but this does not change the fact that for all practical purposes damage to property sometimes is irreparable in the eye of the law. Where the main object of its use is prevented the damage may well be irreparable.- Where there will be a destruction of the element which makes the property of value, the damage will be irreparable. California Pastoral & Agri. Co. v. Enterprise Canal & Land Co. 127 Fed. 741. In the case at bar the land [649] obtains its value from tbe raising of cane for tbe manufacture of sugar, wbicb is tbe main industry of Porto Pico, and apparently tbe sole industry of tbe plaintiff. Tbe business interrelations growing out of tbe sugar industry, both as to colonos and employees on tbe one side, and as to American and other business bouses to whom tbe product is to be shipped on tbe other, make up, a commercial network, for whose breaking tbe courts would be powerless to estimate and award damages. This constitutes irreparable damage in tbe eye of tbe law. In tbe case at bar tbe answer does not expressly deny this allegation of tbe bill; but by setting up that tbe same injury will accrue to tbe defendants by similar deprivation of water, it practically admits tbe claim of tbe plaintiff that tbe same result will accrue to itself.

All that is needed for a preliminary injunction is to satisfy tbe court that a cause of action exists, and that irreparable injury will result unless tbe preliminary injunction is granted. Irving v. Joint Dist. Council, U. B. C. & J. 180 Fed. 896, 900; Barrett v. New York, 183 Fed. 793, 799. While a preliminary injunction should be cautiously used, it should not be withheld when in tbe exercise of a sound judgment it is necessary to prevent injustice. Continuous Glass Press Co. v. Schmertz Wire Glass Co. 82 C. C. A. 587, 153 Fed. 577, 578. A preliminary injunction rests largely within tbe sound discretion of tbe trial court, especially where tbe defendant can be fully protected against loss by a bond to be given by tbe plaintiff. Railroad Commission v. Texas & P. R. Co. 75 C. C. A. 226, 144 Fed. 68, 73.

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