Gandía v. Porto Rico Fertilizer Co.

28 P.R. 516
CourtSupreme Court of Puerto Rico
DecidedJune 1, 1920
DocketNo. 2046
StatusPublished

This text of 28 P.R. 516 (Gandía v. Porto Rico Fertilizer Co.) 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 v. Porto Rico Fertilizer Co., 28 P.R. 516 (prsupreme 1920).

Opinion

Mr. Justice Wolf

delivered the opinion of the court.

The Porto Rico Fertilizer Company is the defendant in this case. When the corporation was first incorporated the stock was divided as follows: 250 shares to the Virginia Carolina Chemical Company of Richmond, Virginia; 125 shares to the firm of Gandía & Stubbe; 60 shares were shown in the articles of incorporation to belong to Stubbe and 60 shares to the complainant Pedro Gandía; 3 to Federico Stubbe and 2 to Hector Cestero. In the complaint there [517]*517is a reference to the first dividend declared, bnt at the trial it was shown that the parties were referring to the second dividend. The complainant maintains that of this second dividend $8,234.06 were payable on his sixty shares and that the amount of the dividends remained in the coffers of the company.

A short time after the declaration pf these dividends, or on July 24, 1916, the firm of Gandía & Stnbbe was dissolved. There were articles of dissolution, the interpretation of which is one of the principal matters in controversy in this action. The other matter of importance is the ownership of the $8,234.06.

The answer of the defendant set up that while the* sixty shares appeared in the articles of incorporation to belong to Gandía, the said sixty shares and the sixty shares belonging to Stubbe were in reality the property of the firm of Gandía & Stnbbe; that of the 500 shares mf the Porto Eico Fertilizer Company, 250 belonged to the directors of the Virginia Carolina Chemical Company and 250 to Gandía & Stubbe, and the defendant corporation also alleges that the $8,234.06 claimed by Gandía as well as the $8,234.06 which appears to the credit of Stnbbe was a dividend, not on the 120 shares alleged to belong- individually to Gandía and-to Stubbe but on the whole 250 shares of Gandía & Stubbe, and the corporation also says that upon receiving a notice that Gandía had sold his shares to Stubbe it paid the whole sum of $16,250 to Stubbe.

The case went on to trial and on motion of the defendant the court rendered judgment of nonsuit in its favor. The court, after summing up some of the foregoing facts and the nature of a motion for nonsuit wherein all the facts stated by the complainant must be accepted as true, found that the complainant Gandía had not successfully proved his ownership of the sixty shares. The court found that proof of the fact that Gandía was the owner of sixty shares [518]*518at the time of the incorporation of the company is not proof that he was the owner to-day and that the best, proper and competent proof in the case was the hooks of the company. The court also found that in the article of dissolution $8,234.06 were assigned individually to Gandía and to Stubbe, but that, on the other hand,» this whole sum of $16,468.12 was set forth as an asset of Gandía Stubbe and that therefore the complainant was not in a condition to go against the facts thus set forth in the said articles.

The appellee maintains that 'the court below, in considering a motion of nonsuit, is not bound, as in California, merely to consider whether there is proof tending to make out a primg, facie case, but, as we understand the appellee, can weigh the whole proof and resolve a possible conflict. Section 192 of the Code of Civil Procedure says an action will be dismissed, or.judgment of nonsuit entered, in the following cases:

“(5) By the court upon motion of the defendant .when, upon a trial, the plaintiff fails to prove a sufficient case upon which to base a judgment.”

The corresponding provision in California was:

(5) By the court upon motion of the defendant when upon the trial the plaintiff fails to prove a sufficient case for the jury.”

The difference between these two sections, we hold, is just the fact that in Porto Pico there is no jury in civil cases in the insular courts. Otherwise, the rules governing nonsuits remain unchanged and we have so applied them in Vargas v. Monroig, 15 P. R. R. 26, and Méndez v. Banco Comercial, 26 P. R. R. 586. We also applied the rule in criminal cases where the court had rendered judgment of nonsuit in favor of defendants. Even if appellee was right, it is evident that the court below was not entering into the weight of the proof, but was only considering whether it was sufficient. It is evident, too, that a court should not be [519]*519called, upon twice to pass upon tlie credibility of witnesses. The idea of the word “nonsuit” implies that the complainant has not made out a prima f-acie case. We may say in passing that the final conclusion at which we have arrived wtíüld follow whether the (Tenrt-was passing upon the question of the existence of a primci facie case or whether upon the merits of the case as .submitted.

The appellee also alleged that the order on a motion of nonsuit must be excepted to. „ This has not been the practice in this jurisdiction. Section 192 of the Code of Civil procedure says that judgment of nonsuit may be entered, etc., and section 213 says that the final decision and action * * # shall be deemed to have been excepted to. A judgment of nonsuit is such final decision.

The court was in error in holding that Gandía had not proved prima facie his ownership of the sixty shares. Not only did he so testify, but the articles of incorporation show that- he was the owner of the said sixty shares, and his ownership once being shown, the presrimp.tion of its continuance exists as set forth in section 102 of the Law of Evidence and as decided by us in Fulladosa v. Castro, 27 P. R. R. 644, and cases therein cited.

The court was under a mistaken impression that the rule of best evidence applied to the proof of ownership in this case. 17 Cyc. 505, says:

“Where a record of the acts and proceedings of a private corporation is required by law to be kept, such record constitutes the best evidence of its contents, and parol evidence is not admissible if the record is accessible: The foregoing rule, however, is not of unlimited scope; independent- facts of which a witness has personal knowledge may be proved by his testimony, notwithstanding that they may also appear upon the records of the corporation.”

And in 10 R. G. L. 903, the statement of the rule is set forth as follows:

“The best obtainable evidence should be adduced to prove every [520]*520disputed fact, and a failure to produce it, but an attempt instead to sustain the issue by inferior evidence, will authorize the inference that the party does not furnish the best evidence because it would tend to defeat, instead of sustaining, the issue on his part. In requiring the production of the best evidence applicable to each particular fact, it is meant that no evidence shall be received which is merely substitutionary in its nature, so long as the original evidence can be had. The rule excludes only that evidence which itself indicates the existence of more original sources of information; but where there is no substitution of evidence, but only a selection of weaker instead of stronger proofs, or an omission to supply all the proofs capable of being produced, the rule is not impinged.

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

Cite This Page — Counsel Stack

Bluebook (online)
28 P.R. 516, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gandia-v-porto-rico-fertilizer-co-prsupreme-1920.