González v. Muñoz

597 F. Supp. 1231, 1984 U.S. Dist. LEXIS 21865
District Court, D. Puerto Rico·Decided November 20, 1984·No. No. Civ. 83-1304CC·Published·Cited by 1 cases

Opinion

OPINION AND ORDER

CEREZO, District Judge.

Maria Isabel González, mother and judicial administrator of minor Pedro Javier Muñoz González, filed this suit against Demetria Muñoz and the First National State Bank-Edison, New Jersey, to recover certain funds which allegedly belong to him. Federal jurisdiction is said to be premised on diversity of citizenship between plaintiff and defendant Muñoz1 and on the banking-transaction jurisdictional grant of 12 U.S.C. Section 632.2 Presently before us is a Motion to Dismiss for Lack of In Personam Jurisdiction filed by codefendant First National State-Bank Edison, New Jersey (First National) on September 30, 1983, opposed by plaintiffs, and a Motion for Partial Summary Judgment against defendant Demetria Muñoz filed by plaintiffs on November 17, 1983.

The facts portrayed by the record3 show that Don Benito Muñoz, the minor’s deceased father, left a certain amount of cash which was given to his sister Demetria Muñoz to hold for the benefit of his son. Demetria purchased two certificates of deposit4 in New Jersey from First National [1233] for a total of $33,000. The minor’s mother subsequently filed an ex-parte proceeding in the Superior Court of Puerto Rico, Ponce Part, for the judicial administration of her son’s assets. That court ordered Demetria Muñoz and First National to transfer the funds held through the certificates to the Clerk of the Ponce Court. It is alleged that both defendants were duly notified of this order yet failed to comply. Plaintiffs seek judgment ordering these two defendants to deposit the amount of the certificates plus interests, costs, disbursements and attorney’s fees for $4,500 with the Clerk of the Ponce Court and that $15,000 in damages be awarded.

Demetria Muñoz has made several formal and informal appearances through out-of-state counsel Jeffrey Streisfeld in which she indicates that she was entrusted with a certain amount of money by her dying brother Benito to keep for the minor’s benefit. She has alleged that Benito made her promise not to let the minor’s mother get her hands on the money; that the only additional amounts that she received were used to pay her brother’s funeral expenses and that a remaining $1,000 is deposited in a savings account. She expressed her willingness to deliver the certificates of deposit in exchange for dismissal of this action without costs but plaintiffs’ attorney has refused that offer. She opposed plaintiffs’ unsworn request for summary judgment with a motion resembling an answer to a complaint entitled “Affirmation in Opposition” in which the sufficiency of plaintiffs’ pleadings is challenged and most of the allegations of the complaint are denied. On January 30,1984 the court afforded her out-of-state counsel ten days to request pro-hac-vice admission to practice before this court pursuant to Local Rule 4 for this District, a copy of which was sent to him together with the order. Mr. Streisfeld sent a reply letter stating that compliance with Local Rule 4 which requires retaining local counsel would be too costly and requested that she be exempted from this requirement. This was denied but Demetria Muñoz was allowed to appear pro se. She was advised that all future communications with the court should be made through motions filed with the Clerk. She did not appear at a hearing for oral argument on plaintiffs’ motion for summary judgment. The court denied a request made by plaintiffs that the opposition to summary judgment signed by attorney Streisfeld be accepted as Demetria Muñoz’ pro-se appearance and stated that it would review the record to see if she should be allowed another extension of time to oppose the pending request for summary judgment. Defendant Muñoz has not made any further appearances and the court did not grant her any further extension.

As far as First National is concerned it argues that it has not performed a single act within the jurisdiction of Puerto Rico, does not own real property or conduct business here and that the issuance of an order by the Commonwealth Court regarding the minor’s funds does not allow for the exercise of personal jurisdiction over it. When determining whether a court can exert personal jurisdiction over a party one must consider the constitutional limits of such power which, as recently discussed in Helicópteros Nacionales de Colombia, S.A. v. Hall, — U.S.-, 104 S.Ct. 1868, 80 L.Ed.2d 404 (1984), can be summarized as follows: “[d]ue process requirements are satisfied when in person-am jurisdiction is asserted over a nonresident corporate defendant that has “ ‘certain minimum contacts with [the forum] such that the maintenance of the suit does not offend ‘traditional notions of fair play and substantial justice.’ ” Id. 104 S.Ct. at 1872. The conditions under which Puerto Rico has permitted its courts to exercise their jurisdiction over nonresidents are spelled out in Rule 4.7 of the Puerto Rico Rules of Civil Procedure and the applicable caselaw. See e.g.: A.H. Thomas Co. v. Superior Court, 98 DPR 883, 98 PRR 864 (1970). The rule indicates that Puerto Rico courts may exercise jurisdiction over a nonresident if it either conducted business [1234] transactions in Puerto Rico personally or through an agent or participated in the commission of tortious acts within Puerto Rico5 personally or through an agent. The conduct or business transaction occurring in Puerto Rico must, however, be a purposeful act performed by the defendant upon whom personal jurisdiction is trying to be exercised. As the Supreme Court of Puerto Rico said in A.H. Thomas:

‘The unilateral activity of those who claim some relationship with a nonresident defendant cannot satisfy the requirement of contact with the forum State ... it is essential in each case that there be some act by which the defendant purposefully avails itself of the privilege of conducting activities within the forum State, thus invoking the benefits and protections of its laws.’

A.H. Thomas, PRR at 869 citing Hanson v. Denckla, 357 U.S. 235, 78 S.Ct. 1228, 2 L.Ed.2d 1283 (1958).

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González v. Muñoz, 597 F. Supp. 1231, 1984 U.S. Dist. LEXIS 21865 (prd 1984).

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