In Re Caribbean Petroleum, LP

561 F. Supp. 2d 194, 2008 U.S. Dist. LEXIS 77785, 2008 WL 2488511
CourtDistrict Court, D. Puerto Rico
DecidedJune 20, 2008
DocketCivil 04-1964 (FAB)
StatusPublished
Cited by9 cases

This text of 561 F. Supp. 2d 194 (In Re Caribbean Petroleum, LP) is published on Counsel Stack Legal Research, covering District Court, D. Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Caribbean Petroleum, LP, 561 F. Supp. 2d 194, 2008 U.S. Dist. LEXIS 77785, 2008 WL 2488511 (prd 2008).

Opinion

OPINION AND ORDER FOLLOWING BENCH TRIAL

BESOSA, District Judge.

I. INTRODUCTION

Plaintiffs are 263 residents of Cabrera Development in Utuado; the development borders the Rio Grande de Arecibo. On July 11, 1994, they filed suit for damages under Article 1802 of the P.R. Civil Code, P.R. Laws Ann. tit. 31 § 5141, against Caribbean Petroleum Corporation (“Caribbean Petroleum” or “Gulf’) in the Superior Court of Utuado, alleging that they had been harmed by the fumes from a gasoline spill that occurred at a Gulf gasoline station in their vicinity. They alleged that the fumes came from gasoline that seeped from the gasoline station through the ground near their homes, eventually reaching and contaminating the Rio Grande de Arecibo. On March 7, 1994, Caribbean Petroleum accepted responsibility for the spill. (Joint Exh. I, pp. 9 and 11.) The Utuado Court then bifurcated the case and held a trial on the issue of negligence and liability.

On April 5, 2005, the Utuado Court issued an Amended Partial Judgment holding that a causal relationship existed between the gasoline spill and the following damages claimed by plaintiffs: eye, throat and nose irritation; headaches; an increase in the number and severity of allergies in those plaintiffs with preexisting allergy conditions; and mental and emotional anguish stemming from the disturbance and interruption of plaintiffs’ individual and family lives. 1 The Amended Partial Judgment is final and was not appealed by the defendants. (Joint Exh. I)

A subsequent trial intended to determine damages was never held by the *199 Utuado Court because Caribbean Petroleum filed a bankruptcy petition before the United States Bankruptcy Court for the District of Delaware. The Delaware Bankruptcy Court transferred plaintiffs’ claims to the United States Bankruptcy Court for the District of Puerto Rico, which in turn referred the claims to this Court for the final liquidation of damages.

The parties then agreed to classify the plaintiffs into three basic categories, according to the severity of their damages. On July 6, 2006, this Court scheduled the trial for the first 82 plaintiffs referred to as “Group 3” (asthmatic patients and other illnesses relating to respiratory tract health). During the Pretrial Conference held on February 12, 2007, this Court ordered the parties to choose a representative sample of plaintiffs from Group 3 for trial purposes. (See Docket Nos. 62 and 72.) Once the judgment for damages as to the representative plaintiffs were entered, the Court expressed, the parties will “have a better sense of what will happen with the others” and “may be able to settle out” the case as to the remaining plaintiffs. (Docket No. 72, Transcript of the Pretrial Conference held on February 22, 2007, p. 10, lines 19-24.)

A bench trial was held on July 2, 3, 5, 6, and 16-20, 2007, on the issue of damages as to the first group of 17 representatives from Group 3 (Docket Nos. 87-90, 101-104.) The parties then filed their proposed findings of facts and conclusions of law (Docket Nos. Ill and 112.) Upon due consideration of the testimonial and documentary evidence presented at trial, and pursuant to Rule 52(a) of the Federal Rules of Civil Procedure, the Court now issues its findings of fact and conclusions of law.

II. DAMAGES IN PUERTO RICO

Article 1802 of the Civil Code provides, in its pertinent part, that “[a] person who by an act or omission causes damage to another through fault or negligence shall be obliged to repair the damage so done.” P.R. Laws Ann. tit. 31 § 5141. To prevail in a cause of action for fault or negligence, a plaintiff must prove, by a preponderance of the evidence, the following elements: (1) an act or omission constituting fault or negligence; (2) injuries; and (3) a causal connection between the act or omission and the injuries. Admor, F.S.E. v. Almacen Ramon Rosa, 151 D.P.R. 711, 725 (2000)

Preponderance of the evidence means nothing more than to prove that the defendant’s negligent conduct or omission was the factor that most probably caused the plaintiffs damages. Perez Cruz v. Hosp. La Concepcion, 115 D.P.R. 721, 732 (1984) (emphasis added); Rivera v. Turabo Med. Ctr. P’ship, 415 F.3d 162, 168 (1st Cir.2005)

The principle underlying the calculation of damages is clear: damages in Puerto Rico are compensatory. Torres v. Castillo Alicea, 111 D.P.R. 792, 804 & n. 7 (1981); Perez v. Sampedro, 86 D.P.R. 526, 530 (1962); see also Marina Industrial v. Brown Boveri, 114 D.P.R. 64 (1983) (punitive damages do not exist in Puerto Rico); and Noble v. Corporacion Insular de Seguros, 738 F.2d 51, 54 (1st Cir.1984). When determining the amount of damages that a party is entitled to recover, however, the courts “must not lose sight of the fact that section 1802, being a remedial statute, should be liberally construed to accomplish its purpose.” Rivera Colon v. Diaz Arocho, 2005 T.S.P.R. 116 at p. 17, 2005 WL 2149301; Dorante v. Wrangler, 145 D.P.R. 408 (1998); and Munoz Hernandez v. Policia de P.R., 134 D.P.R. 486 (1993). Therefore, the purpose of adjudication of damages pursuant to article 1802 is to put the injured party, as nearly as possible, where he would have been had the breach not occurred. Cappalli, Tort Damages in *200 Puerto Rico, 46 Rev.Jur.U.P.R. 241, 242 (1977); J. Puig Brutau, Fundamentos de Derecho Civil, 512 (1976).

Under Puerto Rico law, there are two types of recoverable damages: pecuniary or economic damages, and moral damages. The Puerto Rico Supreme Court has defined moral damages as “the damage inflicted on the beliefs, feeling, dignity, social esteem, or physical or mental health of the injured party.” Rivera Colon, 2005 T.S.P.R. at p. 18, 2005 WL 2149301. Because it is “symbolic in nature,” the courts are called to quantify the moral damages suffered by a plaintiff in monetary terms. In doing so, however, “... the damages must be totally redressed.” Rivera Colon, 2005 T.S.P.R. at p. 18, 2005 WL 2149301.

The Puerto Rico Supreme Court has acknowledged the courts’ “delicate challenge” in assessing and valuing damages. Rivera Colon, 2005 T.S.P.R. at p. 23, 2005 WL 2149301. See, e.g. Rivera Colon, 2005 T.S.P.R. at p. 21, 2005 WL 2149301; Rodriguez Cancel v. A.E.E., 116 D.P.R. 443 (1985). “Awarding an insufficient sum in damages has the effect of diminishing the civil liability to which the tortfeasor must be subject; on the other hand, awarding an exaggerated sum entails a punitive element not recognized in [Puerto Rico’s] legal system.” Rivera Colon, 2005 T.S.P.R. at 22, 2005 WL 2149301.

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Bluebook (online)
561 F. Supp. 2d 194, 2008 U.S. Dist. LEXIS 77785, 2008 WL 2488511, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-caribbean-petroleum-lp-prd-2008.