Martín Santos v. Urban Renewal & Housing Corp.

89 P.R. 173
CourtSupreme Court of Puerto Rico
DecidedOctober 7, 1963
DocketNos. R-63-5, R-63-6
StatusPublished

This text of 89 P.R. 173 (Martín Santos v. Urban Renewal & Housing Corp.) 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
Martín Santos v. Urban Renewal & Housing Corp., 89 P.R. 173 (prsupreme 1963).

Opinion

Mr. Justice Santana Becerra

delivered the opinion of the Court.

These are cases of claims for wages. In case No. R-63-5, Celio Martín Santos et al., the amended complaint states that the claimants worked for the Urban Renewal and Housing [175]*175Corporation of Puerto Rico and its predecessor the Housing Authority of Puerto Rico, as permanent employees in relation to its profitable enterprises, projects, and activities in the construction of buildings and immovables, among other purposes, to lease them for compensation; that the Housing Authority of Puerto Rico as well as its successor the Corporation compelled the claimants to work, without pay, in excess of 40 hours per week and during the 15-minute coffee-break after the first two hours of work, and during periods between 12:00 n. and 1:00 p.m.; that in some occasions, without any right whatsoever, the compensations of different claimants were changed, and several of the claimants were laid off and discharged without just cause and without paying them their wages. They also claim vacation pay corresponding to the period of ten years prior to June 1, 1962, in accordance with the agreement to that effect with respondent. In case No. R-63-6 of Lino Ortiz et al., the complaint contains similar allegations, except for the claim related to vacations.

The respondent Corporation filed a motion to dismiss the complaints. The trial court rendered judgment dismissing them, as a question of law, on the ground that the Minimum Wage Act is not applicable to the Urban Renewal and Housing Corporation of Puerto Rico, and consequently, neither is Mandatory Decree No. 11 of the construction industry. This is the problem now before us.

The Urban Renewal and Housing Administration and respondent herein, Urban Renewal and Housing Corporation, were created by Act No. 88 of June 22, 1957. In general terms the Administration was created for the social, economic, and technical research in the field of housing and urban renewal; to study and evaluate the housing and urban renewal problems in the Commonwealth of Puerto Rico, and to make recommendations concerning policies and programs in relation to said problems; for the long-term housing and [176]*176urban renewal planning and programing and the promotion of construction of low-cost private dwellings. The Corporation was created as a corporate and politic public entity, to which the law conferred the same powers, duties, functions, and authority as were conferred under previous laws on the Puerto Rico Housing Authority and the Municipal Housing Authorities, and those conferred to the Social Program Administration of the Department of Agriculture and Commerce with respect to the minimum-requirement developments. The Corporation was also empowered to carry out recreative and artistic activities in public housing developments.1

Section 3 of Act No. 88 provided that the officials and employees of the Administration shall be included within the competitive service. Those of the Corporation shall be comprised within the exempt service, save that the officials and employees transferred to said Corporation who are regular employees within the competitive service shall retain their status. Petitioners allege that they have served under respondent Corporation and also under the Housing Authority of Puerto Rico.

Insofar as pertinent, Act No. 126 of May 6, 1938, as amended, upon creating the Puerto Rico Housing Authority as a public body corporate and politic with governmental functions and juridical personality, authorized it to appoint its officials, agents, and permanent and temporary employees, and to determine their qualifications, duties, and remuneration. Within its area of operation it was given the power to prepare, carry out, acquire, lease and operate housing projects and the reconstruction, improvement, alteration or repair of any housing project; to agree to any conditions [177]*177attached to federal financial assistance relating to the determination of prevailing salaries and wages or payment of not less than prevailing salaries or wages or compliance with labor standards, in the development or administration of projects, and to include in any contract let in connection with a project, stipulations requiring that the contractor and any subcontractors comply with requirements as to minimum salaries or wages and maximum hours of labor. It was authorized to lease any dwellings, houses, accommodations, lands, buildings, and structures embraced in any housing project, and to establish rents therefor; to lease with a right to ownership and to sell improved lots with or without a dwelling; to set aside and sell lots at a reasonable price to private persons who are engaged in such activities which are useful and convenient to the project and to invest any funds held in reserve in property or securities.2

Insofar as pertinent herein, the Minimum Wage Act, No. 8 of April 5, 1941, as amended, defines “employer” as every natural or artificial person of any kind that, whether or not for profit, employs any number of workmen, laborers or employees or allows them to work, for any kind of remuneration. “Occupation” was defined as every work, labor, art, trade, employment or activity, whether or not for profit. “Laborer,” “employee,” or “worker” was defined as every natural person who exercises, discharges or performs any art, trade, employment or work, under the orders or for the benefit of another, or on the basis of a contract of lease of [178]*178services, or through remuneration of any kind ... excluding professionals, executives, and administrators, as the latter were defined by the Minimum Wage Board. And the Act stated that the terms defined shall always be construed in the widest sense, and shall not exclude other terms embodying agricultural, industrial or commercial activities or occupations or labor of any kind.

The Minimum Wage Act of 1941 further provided that it shall not be applicable to persons employed by the United States of America, the Commonwealth of Puerto Rico, or the municipalities thereof, neither shall persons employed . . . with corporations, authorities or analogous organizations created or controlled in part by said governments, be understood to be included, as far as regulations and decrees theretofore or hereafter issued by the Board.

The Minimum Wage Act of 1956, No. 96 of June 26 of that year, which repealed the Minimum Wage Act of 1941 provided, insofar as pertinent — § 33 — that it is not applicable to persons employed by the Government of the United States or by the Government of the Commonwealth of Puerto Rico, with the exception of those agencies or instrumentalities of the latter which operate as private businesses or enterprises. “Employer” is defined as every natural or artificial person of whatever nature who or which, whether or not for profit, employs any number of laborers, workmen or employees, or allows them to work for compensation of any sort. “Industry” is defined as any field of economic activity, and embraces . . . the construction, as well as the personal services (except domestic), professional and commercial services. “Workman,” “employee” or “laborer” is defined as every person who exercises, performs, or carries out any art, trade, employment or work under the orders or for the benefit of another,- on the basis of a contract of hire for services, or for remuneration of any kind ... in any industry.

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

Cite This Page — Counsel Stack

Bluebook (online)
89 P.R. 173, Counsel Stack Legal Research, https://law.counselstack.com/opinion/martin-santos-v-urban-renewal-housing-corp-prsupreme-1963.