Mercado e Hijos v. Puerto Rico Sugar Board

95 P.R. 831
CourtSupreme Court of Puerto Rico
DecidedMarch 27, 1968
DocketNos. JA-66-1, JA-66-2, JA-66-3
StatusPublished

This text of 95 P.R. 831 (Mercado e Hijos v. Puerto Rico Sugar Board) 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
Mercado e Hijos v. Puerto Rico Sugar Board, 95 P.R. 831 (prsupreme 1968).

Opinion

Mr. Justice Blanco Lugo

delivered the opinion of the Court.

The Sugar Producers’ Association of Puerto Rico, Mario Mercado e Hijos, and the Land Authority, operators of sugar mills, challenge the decision of the Puerto Rico Sugar Board of July 21, .1965, ordering them to pay to the colonos the compensation for transportation and hauling corresponding to the grinding seasons-of 1963 and 1964 without any limitation whatsoever by reason of the distance traveled, thereby eliminating the one-dollar maximum which had prevailed by law until then. According to the. estimate of the Board, it represents an additional payment ,of $836,031.58 by the centrals for the 1963 grinding season and approximately $809,565 for 1964.

iv.

In 1951 when the Sugar Act of Puerto. Rico, Act' No.' 426 of .May 13, 1951 • (Sess. ■ Laws, p. .1138), was approved, the Legislature specifically established in § -6'the conditions for the transportation and "hauling of the. colono’s sugarcane. In the event that the central did. not provide such means of transportation- from the colono’sÍBxm to the central it provided that: ■ \. •. • . -,

“(b) In those cases where the colono transports his cane, the central shall compensate him at the basic;rate of. fifteen (15) cents for each ton of cane transported, as hauling expenses, plus-the sum of . five (5) cents, for each ton per kilometer,- from the farm' to the -point of delivery,- provided the distance, to be eover.ed from the . farm to the. point delivery ■ is., one-half kilometer oi more ¡ ' Provided,. That the colono, shall be entitled [833]*833to receive the basic, compensation of fifteen. (15) cents even if the distance to-be covered from the farm to the -point of delivery is less than one-half kilometer. For the purpose of this compensation, the distance shall be determined from the normal or natural exit in the colono’s farm where the cane was cut, to the point of delivery designated by the central. If upon determining the weight and the distance in the transportation and hauling of the cane, there results a fraction of- a kilometer or of a ton, a proportional compensation shall in -both cases be paid for such fraction.”

As a limitation to the compensation which- the central was-bound to pay on this account, subdivision, (e) stated that:

' “(e)' •, . ' • ’;
In no case shall the central be under obligation to pay ,more: than one dollar for transportation and hauling.
ff

Eleven years-later subdivision (e) of .§. 6, 5 L.P.R.A.. § 375, .was amended.by Act No. 54 of June 19, 1962 (Sess. Laws, p. 120) eliminating the maximum amount of-one dob lar, and incorporating the provision copied below which transferred to the Sugar Board the power to establish the compensation for transportation and hauling:1

"Notwithstanding the provisions" of this section, the Board' may, after hearing the parties, increase the' compensation fixed for transportation and-hauling to be paid-by the centrals to. the colono, which compensation shall prevail, and the Board may likewise fix the maximum amount that in each case the central shall be under obligation to pay for transportation and hauling.” .

On March 25, 1964, the Sugar Board decided to hold public, hearings for the purpose of considering a petition of [834]*834the Farmers’ Association of Puerto Rico to increase the compensation for transportation and hauling paid to the colonos who personally perform the transportation of their cane from their farms to the place of delivery to the central, from 15 to 24 cents per ton of cane transported and from 5 to 8 cents for each ton of cane per kilometer covered.2

After several preliminary incidents which we need not recite here, the Sugar Producers’ Association filed on May 18, 1964, a petition to fix the maximum amount of one dolíal-as the compensation to be paid to colonos for transportation and hauling. Said petition was considered jointly with that presented by the Farmers’ Association. Several hearings were held during which the colonos as well as the centrals offered oral and documentary evidence.

On February 26, 1965, the Board entered an extensive decision denying the petition of the Farmers’ Association of Puerto Rico on the ground that it had not been established that the colonos, although they had to pay higher costs for transportation, had received an inadequate pay for their cane or suffered losses or had insufficient profits as cane producers.3

As to the petition of the Sugar Producers’ Association of Puerto Rico to fix a maximum compensation, the Board adopted Rule No. 11 fixing a maximum compensation of one dollar effective as of the grinding season of 1963.4

[835]*835Rule No. 11 was not approved by the Governor of Puerto Rico.5 As a consequence thereof, the Sugar Board, by its decision of July 21, 1965, ordered the centrals to proceed to pay to the colonos the corresponding compensation for transportation and hauling for the past grinding seasons of 1968 and 1964, ivithout any limitation by reason of distance covered and to file proof that they had paid the compensations in the manner indicated. The petitioner centrals immediately requested the reconsideration of this decision adducing, in substance, that (a) they were being deprived of their property without the due process of law because the application of said order was confiscatory, onerous, unreasonable, and arbitrary, not only as to the economic damages [836]*836caused to them, but because, actually, it left to the exclusive discretion of the colonos the determination of the amount, to be paid on that account, considering the obligation to grind their cane imposed by § 3 of the Sugar-Act; and (b) the determination fixing a maximum limit was adopted in a quasi-judicial proceeding, although it was denominated Rule 11, for which reason the executive approval was unnecessary, and since it had not been challenged by the colonos it was still in force. They concluded requesting leave to appear to present evidence on the economic prejudice caused to them and that a -reasonable term be granted to them to file a memorandum on the questions of law-raised. On September 11, 1965, the centrals .filed a written memorandum in support of the motion for reconsideration signed by Fernando Chardón, which discusses the economic impact caused by the decision of July 21, with an extensive information'to support the aforementioned position that the compensation without maximum limit , “binds the centrals to grind the cane with losses, since they are obliged to pay excessive transportation costs in cases of distant cane, precluding them, at the same time, from refusing to grind it:” On October 7 they also requested (a) to enter in the record the decision of last February 26 as well as the stenographic record of the hearings which resulted in the adoption of Rule 11, and (b.) that official notice be taken of the usage and custom in the industry, of executing grinding contracts for two or three'years: Similar contentions were raised by Mario Mercado e Hijos, Land Authority,' and Central San Vicente.

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