López Delgado v. South Porto Rico Sugar Co.

62 P.R. 227
CourtSupreme Court of Puerto Rico
DecidedJune 14, 1943
DocketNo. 8645
StatusPublished

This text of 62 P.R. 227 (López Delgado v. South Porto Rico Sugar 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
López Delgado v. South Porto Rico Sugar Co., 62 P.R. 227 (prsupreme 1943).

Opinion

Me. 'Justice De Jesús

delivered the opinion of the court.

Towards the end of 1937 the plaintiff and the defendant entered into a verbal contract for the grinding of sugar cane pursuant to which the defendant agreed to grind the cane of the plaintiff of superior grades, from the farms of the former in the Municipality of Cabo Rojo, under the regular grinding terms, payment of the share of the plaintiff to be made within the first 15 days of the month following the delivery of the cane. On the date on which the contract was entered into, Act No. 112, approved May 13, 1937 (Laws of 1937, p. 261) was already in force. The pertinent portion of §11, and §15 as a whole, read as follows:

“Section 11. — The liquidation of the sugar belonging to a colono shall be made by the central fortnightly or monthly, as it may have been agreed upon, taking as the value of the sugar, for its liquidation, the fortnightly or monthly average price in the New York market, [229]*229of the sales of sugar of 96° of polarization, for the fortnight or month in which the cane was delivered, from which average price a sum which shall not exceed fifteen (15) cents for each hundredweight shall be deducted to cover the expenses of bagging and freight; ...”
“Section 15. — Every contract entered into, or every practice introduced, in contravention of the provisions of this Act, shall be null and inexistent.”

Pursuant to said contract, the cane grower delivered his cane to the sugar mill. The latter ground the cane from January to May of 1938 and by virtue of the readjustment made in December 1939, to which we shall hereinafter refer, adjusted the contract to the provisions of -the said Act No. 112, with the exception of the discount for bagging and freight provided in §11, supra, under which the mill discounted 25 cents from the cane grower instead of a sum not exceeding 15 cents for each quintal of sugat.

Shortly after said Act No. 112 came into effect, its constitutionality was assailed by another person. Pending definite determination of the validity of the law, the mill continued in a provisional way to make the said discount of 25 cents, in violation of the cited legal provision. While the matter was in this state, and before the constitutional question which was pending in the courts had been definitely decided, Act No. 213 (Lavrs of 1938, p. 411) was approved on May 15, 1938. By virtue of that Act various sections of Act No. 213 were amended, among them §11. Pursuant to said amendment the centrals were authorized to ‘ ‘ deduct an amount which shall not exceed twenty-five (25) cents for each hundredweight, free from all imposts, to cover the expénses of bagging, freight, maritime insurance, commissions, insular excises and all other expenses in connection with the sale of sugar in the New York market; ...”

Meanwhile the judgment of the District Court of the United States for Puerto Bico, declaring Act No. 112 constitutional, was affirmed by the Circuit Court of Appeals for [230]*230the First Circuit on June 13, 1939 (Vidal v. Fernández, 104 F. (2d) 606), and subsequently, on November 6, 1939, the Supreme Court of the United States denied' a petition for certiorari (Vidal, Receiver, v. García, Attorney General of P. R., el al., 308 U.S. 602). In that way the constitutionality of said Act No. 112 became definitely established.

On December 12, 1939, after the constitutionality of Act No. 112 had been definitely established, .the mill readjusted the liquidation in the manner quoted above, continuing to discount 25 cents instead of 15 cents for each quintal of sugar. It based its alleged right to discount 25 cents on the point that §11 had been amended by Act No. 213 of 1938 in the above-described manner before the constitutionality of the law had been definitely established. In the opinion of the mill, as Act No. 213 of 1938 contained no saving clause with reference to the rights acquired under §11 of Act No. 112, the amendment to the said Section, authorizing the central to discount 25 cents for each quintal of sugar, had retroactive effect and ought to be considered as though it had always been the law. So that on making the said readjustment on December 12, 1939, the mill sent to the grower a check for $281.60, which did not include, of course, the difference between the 15 cents and 25 cents discount mentioned above.

It should be noted that on the back of the said check for $281.60, in conformity with what nád been done on previous checks, the central provided the following: “Endorsement hereof by the payee is acknowledgment of full payment and satisfaction of the statement which was attached to the voucher and bears this same date and serial number.”

On December 22, 1939, the grower endorsed and cashed the said check for $281.60; but he claimed from the mill 10 cents for each quintal of sugar, amounting to $789.15, a sum which he contended had been improperly retained by the mill. The latter having refused to pay this sum, the grower filed this suit, claiming the said sum,. with legal interest from [231]*231the 15th day of the month following the delivery of the cane, until complete payment thereof, pins costs and attorney’s fees.

In its answer the mill set up several defenses which in effect were that the complaint did not state facts sufficient to constitute a cause of action, that the amendment of §11 of Act No. 112 by Act No. 213 was retroactive to the dates of the deliveries of the cane, and that the collection of the cheek for $281.60 with the above-noted endorsement had the legal effect of accord and satisfaction and therefore put an end to any claim by the plaintiff.

The district' court entered judgment for the grower for the $789.15 claimed in the complaint, plus costs and $200 attorney’s fees. The mill has appealed from that judgment.

The contention of the appellant that the amendment of §11 was retroactive to the effective date of the original Act, that is, Act No. 112, is clearly without merit. Act No. 112 as a whole is a law of substantive character and therefore any amendment thereto has prospective effect unless something therein expressly indicates the contrary, and does not prejudice rights acquired under previous legislation. Section 3 of the Civil Code provides to that effect as follows :

“Section 3. — Laws shall not have a retroactive'effect unless they expressly so decree.
“In no case shall the retroactive effect of a law operate to the prejudice of rights acquired under previous legislative action.”

The authorities which the appellant invokes refer to procedural statutes which, as we held in Mason v. White Star Bus Line, Inc., 53 P.R.R. 320, 323, have retroactive effect and apply both to pending and to future cases, unless the act itself expressly or implicitly shows that this was not the intent of the legislature.

The demurrer herein, which sets up the contentions that the complaint has failed to state a cause of action and that [232]*232the district court lacked jurisdiction, is based on the theory that the amendment in question was retroactive and that the plaintiff therefore has no claim herein. What we have said decides these contentions against the defendant-appellant.

We proceed to consider the defense of accord and satisfaction.

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Bluebook (online)
62 P.R. 227, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lopez-delgado-v-south-porto-rico-sugar-co-prsupreme-1943.