Gandía-Córdova v. Stubbe

34 P.R. 820
CourtSupreme Court of Puerto Rico
DecidedJanuary 20, 1926
DocketNo. 3324
StatusPublished

This text of 34 P.R. 820 (Gandía-Córdova v. Stubbe) 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
Gandía-Córdova v. Stubbe, 34 P.R. 820 (prsupreme 1926).

Opinion

Me. Justice Hutchison

delivered the opinion of the court.

Plaintiff brought suit for the rescission or annulment of a contract of dissolution and liquidation of a partnership upon the theory of fraud, misrepresentation and mistake.

Later two other suits were filed, one against the Porto Bico Fertilizer Company for dividends alleged to have accrued to plaintiff herein under the terms of such contract, and another likewise based upon an implied affirmance of such contract against defendant herein and against the liquidator of such partnership agreed upon and named by the parties to such contract, for the removal of such liquidator and for money claimed to be due under the provisions of such contract, although characterized as damages arising out of a breach of such contract or out of the fraudulent acts and misrepresentations relied upon in the case now under consideration.

Final judgments seem to have been rendered in both of these subsequent actions prior to the date of the trial herein, the result in one of the same being adverse to defendant Stubbe and in both favorable to plaintiff Gandía.

Additional details as to the true character of the second of these two subsequent actions may be found in the opinion of this court in Gandía, v. Trías et al., 29 P.R.R. 629.

[821]*821Plaintiff now appeals from a judgment of dismissal entered in the first of these three actions and says:

“First. — The court erred in holding that the plaintiff and appellant, by his prosecuting to final judgment another action against the defendant and against the Porto Bico Fertilizer Company, can not be allowed the remedy asserted in this suit in accordance with the doctrine known as election of remedies.
“Second. — The court erred in rendering judgment in favor of the defendant and against the plaintiff.”

Appellant contends that the election was made and became irrevocable when the complaint herein was filed, and quotes from 9 R. C. L. 960, section 7; 15 Cyc. 259 to 260; Klipstein & Co. v. Grant, 141 Fed. 72, and Robb v. Vos, 155 U. S. 131.

The argument then proceeds as follows:

“The Court, in its opinion in the case of Muller vs. Fusca, cited in 20 Corpus Juris, page 35, maintained that when the defendant permits the subsequent action to be prosecuted to judgment this has the effect of preventing the further prosecution of the first of the actions.
“But the trial court in this case ignored that this theory is not supported by the weight of authority, nor even by the weight of clear reasoning, for if it were- accepted then it would be necessary to conclude that the election of remedies is made by the defendant and not by the plaintiff.
“In illustration of this, let us suppose that the plaintiff has a right to elect between two different remedies, to wit: the action for the annulment of a contract, and the action for damages. Let us suppose also that the plaintiff brings one of these actions, let us say, the affirmance of the contract and. damages, and some time after brings the other action mentioned. If the doctrine laid down in Muller vs. Fusca and cited by the trial court were applied to the case to which we are referring, it would be necessary to conclude that it is the defendant and not the plaintiff who could exercise the right of electing a remedy, as he would only have to remain silent, that is, not to allege the defense of election of remedies in either of the two cases, allow one of them to be prosecuted to judgment and then plead this fact as preventing the further prosecution of the other suit.
[822]*822“¥e think that a sound doctrine in matters o£ procedure shows and requires that the defense of election of remedies be raised at the time of answering the complaint in the action subsequent to the first one brought, when the two actions are inconsistent. That is, the defendant in this case, when he appeared to answer the complaint in the action for damages to which the court and the defendant refer, should have pleaded as an affirmative defense the existence of an action for annulment of contract, that is, the existence of the present action which had been already brought and was, therefore, pending, so that such defense could be discussed and decided in the second case begun. But in not doing so, and in waiting until judgment was rendered in that case, thereafter, at the second trial of the present ease to file an amended answer alleging that the plaintiff has elected the remedy asserted in the action for damages and can not, therefore, further prosecute the present action, he has incurred in a gross departure from the sound principles which govern the practice and procedure in the courts of justice, assuming a position which is untenable in the light of logic and of law. Besides, i/t is not alleged in the answer and it does not appear from the record of this case that plaintiff Pedro Gandía has executed the judgment rendered in the said case of damages.
“In 9 Ruling Case Law, page 960, section 6, we find this same vieAvpoint stated as follows:
“ 'Under the rule that the first pronounced act of election or suit constitutes an election of the remedy,- and that this is a defense to the prosecution of a second inconsistent suit or remedy, it cannot be pleaded as a bar to the first that a second suit has been instituted and pursued to a judgment, when such judgment has not been executed or enforced.’
“This doctrine destroys the theory laid down in the case cited by the district court and makes patent the error of the said court in upholding by its judgment the defense raised by the defendant.
“The priority of this-suit over the action for damages (civil suit number 830), appears from paragraph X of the complaint in the said suit number 830, for damages, which forms part of the record in this case as evidence offered by the plaintiff and appellant.
“But even assuming that the present case, instead of being, as it is, the first one begun by the plaintiff against the defendant? were the last one brought, the defense of the defendant would always be of doubtful applicability, as in accordance with the jurisprudence an action ex contráctil derived from a fraudulent contract is not inconsistent with an action for damages caused by the fraud; [823]*823thereby making an important exception to the doctrine of election of remedies.
“In 9 Ruling Case Law, section 5, page 959, this doctrine is expressed in the following language:
“ ‘A class of cases is to be distinguished from those which are subject to the doctrine of election of remedies. It may be that the same transaction will give rise to distinct and independent grounds of action which may be concurrently or consecutively pursued to satisfaction. Accordingly, a recovery in an action for the hire of personal property is no bar to another action seeking to obtain damages for injuries done to the property while in the hands of the bailee.

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Related

Erhardt v. Schroeder
155 U.S. 124 (Supreme Court, 1894)
Friederichsen v. Renard
247 U.S. 207 (Supreme Court, 1918)
Schoeneman v. Chamberlin
55 A.D. 351 (Appellate Division of the Supreme Court of New York, 1900)
A. Klipstein & Co. v. Grant
141 F. 72 (Fifth Circuit, 1905)

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Bluebook (online)
34 P.R. 820, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gandia-cordova-v-stubbe-prsupreme-1926.