Lugo Rodriguez v. Puerto Rico Institute of Culture

221 F. Supp. 2d 229, 2002 U.S. Dist. LEXIS 16490, 2002 WL 1974542
CourtDistrict Court, D. Puerto Rico
DecidedAugust 9, 2002
DocketCivil 01-2325 (JAG)
StatusPublished
Cited by2 cases

This text of 221 F. Supp. 2d 229 (Lugo Rodriguez v. Puerto Rico Institute of Culture) 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
Lugo Rodriguez v. Puerto Rico Institute of Culture, 221 F. Supp. 2d 229, 2002 U.S. Dist. LEXIS 16490, 2002 WL 1974542 (prd 2002).

Opinion

*233 OPINION AND ORDER

GARCIA-GREGORY, District Judge. *

This is an action brought by plaintiffs, Dr. Lionel Lugo Rodriguez (“Lugo”) ARPO, S.E., d/b/a Plaza Suroeste Mall (“Mall”), Plaza Oasis & Hotel Oasis Inc., Southwest Investment Corporation and Inn Management (collectively, “plaintiffs”) against Federal Insurance Company (“Federal Insurance”), Puerto Rico Institute of Culture (“PRIC”), Robert L. Bounds Dávila, Jorge Ortiz Colón, Doris Maza, Héctor Cazul, Mildred González Va-lentín, Collection Center for Municipal Income (“CRIM”), Ramón Nazario, Carlos Martinez, Manuel Velázquez, Orlando Mas, Orlando Hernández, and Osvaldo González Aviles, all sued in their individual and official capacities (collectively, “defendants”). The verified complaint asserts four causes of action against the defendants. (1) a civil claim for damages under the Organized Crime and Control Act of 1970, Pub.L. No 91^52, Section 901(a), 84 Stat. 941, Racketeering Influenced and Corrupt Organization (“RICO”); (2) a claim for violation of plaintiffs civil rights under 42 U.S.C. § 1983,1985 and 1986 premised under certain acts and omissions of defendants under color of state law; (3) a tort claim pursuant to Article 1802 of the Puerto Rico Civil Code (“the Code”); and (4) a claim for vicarious liability under Article 1803 of the Code. Currently pending before the Court are defendants’ motion to dismiss and for summary judgment (Docket Nos. 15, 39, 65, and 87). 1 The Court will grant these motions for the reasons set forth below. 2

FACTUAL BACKGROUND

The facts that originate this case began in 1987 when Lugo purchased some real estate consisting of a lot and a building in San Germán. Lugo wanted to develop a commercial project in the lot and building. On January 21, 1988 Lugo applied for the required permits and submitted a preliminary construction plan for a Mall to the Puerto Rico Administration of Regulations and Permits (“ARPE”). On July 20, 1988, ARPE responded with a “Notice of objection” pursuant to which Lugo had to submit an endorsement from PRIC for the proposed construction because of certain historical tunnels that could be affected by the construction. Lugo then submitted the preliminary Mall construction plans to PRIC.

PRIC informed Lugo that it would approve the preliminary construction plans only if certain recommendations it was making regarding the three fagades of the building existing in the property were in *234 corporated to the final construction plans, in addition to the preservation of the historical tunnels. (Docket No. 39 at 3). Lugo submitted the letter from the PRIC to ARPE for its consideration. ARPE construed the letter as an authorization of PRIC for the proposed preliminary construction plans and conditionally approved them. ARPE stated that the endorsement of PRIC was conditioned on the inclusion of the recommendations regarding the fa-gades in the final construction plans. (Docket No. 39 at 3).

On February 16, 1989, architect López Reyes, representing PRIC, made several observations to Lugo regarding the amended construction plans submitted by Lugo, as well as the initial PRIC recommendations respecting the preliminary construction plans, and requested that these observations be incorporated as soon as possible. (Docket No. 39 at 3). In response, Lugo, through architect Héctor L. Torres of Archicorps (a consulting firm hired by Lugo) sent a letter to PRIC, informing that ARPE was requiring its endorsement for the project. In the letter, Lugo stated that only one of the three fagades of the original building would not be modified. He also indicated that since so little of the building remained on the lot, the structure to be built would be made out of steel and the characteristics of the architecture and the new amended plans would incorporate elements that would be more adequate to the operation of a shopping center. (Docket No. 39 at 4). Ortiz Colón, a PRIC architect, informed Lugo that the project would only be acceptable if all the existing building fagades were to be preserved in their current state.

On October 19, 1989, Lugo and ARPE reached an agreement whereby the permits would be granted if the project complied with PRIC’s fagade recommendations. In response to the agreement with ARPE, PRIC informed that Lugo’s supposed “PRIC endorsement” submitted to ARPE was not official since it had not been signed by an authorized officer. Hence, PRIC had not officially endorsed the project.

On September 10, 1991, Lugo sent a letter requesting PRIC’s endorsement for the project’s tax exemption. PRIC denied the application for endorsement. The final decision as to whether a potential tax payer is entitled to a tax exemption once it has PRIC’s endorsement lies exclusively on the Secretary of the Treasury. PRIC’s intervention is limited to one of endorsement. (Docket No. 39 at 9.) Since Lugo was not pleased with the decision, he requested the PRIC’s Board of Directors to review the decision. After receiving documentary evidence and oral testimony, an official examiner recommended that the application for PRIC’s endorsement for tax exemption be denied. (Docket No. 39 at 6.) The Board of Directors adopted said report and denied the application. 3

Thereafter, Lugo sought review in the Puerto Rico Circuit Court of Appeals. The Puerto Rico Circuit Court of Appeals addressed Lugo’s allegations that PRIC had endorsed construction of the Mall and that PRIC officials had made false reports in his application. On December 9, 1998, the Court held that it was clear that the endorsement for the construction was limited to certain corrective measures related to the tunnel running underneath the Mall and that said endorsement did not approve the work to be performed in the building. (Docket No. 39 at 11.) It expressly held that it was obvious that the Mall project had never obtained PRIC’s official endorsement, and that during its development Lugo never seriously considered framing the Mall according to the best principles of historical preservation. *235 (Docket No. 39 at 12). It also held that Lugo had expressed in two occasions that he was not applying for a tax exemption and that he was now estopped by his own acts in pursuing such application inasmuch as he had waived it. In its conclusion, the Court expressed that Lugo did not establish that there were any irregularities in the PRIC administrative and final decision denying his application for the tax exemption that would justify reversal.

On January 14, 1999, the plaintiff filed a petition for certiorari before the Puerto Rico Supreme Court seeking review of the Court of Appeals decision. The Supreme Court denied certiorari on March 5, 1999.

On July 10, 2001, the plaintiff filed suit in the Mayaguez Court of First Instance alleging that PRIC had filed a false and fraudulent report which had caused the denial of the requested tax exemption. On March 12, 2002 The Mayaguez Court of First Instance granted defendants’ motion for summary judgment on res judicata

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221 F. Supp. 2d 229, 2002 U.S. Dist. LEXIS 16490, 2002 WL 1974542, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lugo-rodriguez-v-puerto-rico-institute-of-culture-prd-2002.