Mojica v. Galarza

761 F. Supp. 217, 1991 U.S. Dist. LEXIS 5527, 1991 WL 64281
CourtDistrict Court, D. Puerto Rico
DecidedApril 22, 1991
DocketCiv. No. 90-1107 (JAF)
StatusPublished

This text of 761 F. Supp. 217 (Mojica v. Galarza) 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
Mojica v. Galarza, 761 F. Supp. 217, 1991 U.S. Dist. LEXIS 5527, 1991 WL 64281 (prd 1991).

Opinion

OPINION AND ORDER

FUSTE, District Judge.

Plaintiffs Ramón Mojica, his spouse, and the conjugal partnership formed by them, filed this action pursuant to 42 U.S.C. § 1983 against the Puerto Rico Telephone Company (“PRTC”) and against various officials of PRTC.1 Plaintiffs allege that defendants’ actions have resulted in the denial of contract awards to plaintiff Mojica, a maintenance contractor. Federal jurisdiction is alleged pursuant to 28 U.S.C. § 1331. Before the court is defendants’ motion to dismiss arguing that plaintiffs’ complaint does not allege a cognizable claim under section 1983. For the reasons stated below, we agree with defendants and dismiss the action pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure.

I.

Facts

The facts recited below are drawn from plaintiffs’ Amended Complaint. (Docket Document No. 3).

[218]*218Plaintiff Mojica has worked as a maintenance contractor for the past fifteen years. During that period he has worked on projects where PRTC has hired general contractors who, in turn, have hired plaintiff as a subcontractor.

In August 1988 plaintiff, while working as a subcontractor to Teleivette Corporation (“Teleivette”) in Ponce, Puerto Rico, was approached by Roque Morales, PRTC’s Construction Manager, about a possible contract with ABM Company (“ABM”). Receiving Morales’ recommendation, plaintiff was awarded the ABM contract and began work in Adjuntas, Puerto Rico. However, after a few weeks, plaintiff was told by David Andino, an ABM official, that he would not be paid by ABM for the work completed and that legal action would be commenced against him. Plaintiff alleges no justification by Andino for these decisions.

When plaintiff went to Morales the next day with this information, Andino and Carlos Barens also were present. According to plaintiffs, the defendants again threatened Mojica and stated that they would interfere with Mojica’s relationship with PRTC. Plaintiff continued to seek payment against ABM.

In December 1988, at a meeting arranged by Jorge Naranjo, Director of Security for PRTC, plaintiffs were questioned about their relationship with Morales and Lionel Santiago, another PRTC official responsible for work bids. Naranjo informed plaintiffs that Morales and Santiago were under investigation for misappropriation of funds.

In January 1989, defendant José Luis Cruz, PRTC’s Director of Maintenance for the Southern Region, informed plaintiffs by phone that PRTC had canceled its contract with Teleivette because it had been illegally awarded by Santiago. Thereafter, Cruz informed plaintiff that neither Teleiv-ette nor plaintiff would receive future PRTC contracts. However, plaintiff alleges that in a subsequent conversation between Cruz and Pedro Davila, president of Teleivette, Cruz was willing to resume dealings with Teleivette but not with plaintiff. Further, according to plaintiffs, Cruz informed regional PRTC maintenance directors not to offer contracts to plaintiff. Defendants Lugo, Rodríguez and Galarza, all PRTC officials, were informed of the above matters by letter.

In the present action, plaintiffs claim that their civil rights were violated by defendants’ conduct and seek compensatory and punitive damages. As a second cause of action, plaintiffs claim that defendants intentionally interfered with their contractual rights and invoke the pendent jurisdiction of this court.

II.

Discussion

A. Section 1983 Claim

Plaintiffs base their federal claim on 42 U.S.C. § 1983. To state a claim under section 1983, two elements must be present: “(1) whether the conduct complained of was committed by a person acting under the color of state law; and (2) whether this conduct deprived a person of rights, privileges, or immunities secured by the Constitution or laws of the United States.” Parratt v. Taylor, 451 U.S. 527, 535, 101 S.Ct. 1908, 1913, 68 L.Ed.2d 420 (1981), overruled on other grounds, Daniels v. Williams, 474 U.S. 327, 106 S.Ct. 662, 88 L.Ed.2d 662 (1986). Because PRTC is considered an instrumentality of the Puerto Rico government, see Kauffman v. Puerto Rico Telephone Co., 841 F.2d 1169, 1170 (1st Cir.1988); Torres Ponce v. Jiménez, 113 D.P.R. 58 (1982), our concern is with the second element necessary to establish a section 1983 claim. We must decide whether plaintiffs were deprived of a right secured by the Constitution of the United States.

Plaintiffs argue that defendants’ actions deprived them of their right to be awarded contracts by PRTC. In essence, they are claiming that they have a protected property interest in the continued reception of contracts by PRTC which cannot be denied without due process of law. See Board of Regents v. Roth, 408 U.S. 564, 569-70, 92 S.Ct. 2701, 2705, 33 L.Ed.2d 548 (1972); [219]*219Beitzell v. Jeffrey, 643 F.2d 870 (1st Cir.1981). In Beitzell, the First Circuit explained the Supreme Court’s ruling in Roth that the word “property” is not limited to ownership of real estate, chattels or money, but includes the interests that a person acquires in specific governmental benefits.

[t]he broadening of the term “property” to include this “new property”, [footnote omitted] has required the courts to determine when an interest in a government benefit rises to the level of protected “property”. The Supreme Court has made clear that the answer depends in large part upon the extent to which a person has been made secure in the enjoyment of the benefit as a matter of substantive state or federal law. [cites omitted] The greater the interest and protection accorded an interest by such substantive law, the more reasonable is the holder in expecting to continue to enjoy it and in making decisions in reliance upon that expectation, and the less reasonable it is for the state to interfere directly with that enjoyment without according a fair opportunity to the holder to contest that interference.

Beitzell, 643 F.2d at 874. However, in Roth, the Supreme Court has made clear that

[t]o have a property interest in a benefit, a person clearly must have more than an abstract need or desire for it. He must have more than a unilateral expectation of it. He must, instead, have a legitimate claim of entitlement to it. It is a purpose of the ancient institution of property to protect those claims upon which people rely in their daily lives, reliance that must not be arbitrarily undermined.

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Related

Board of Regents of State Colleges v. Roth
408 U.S. 564 (Supreme Court, 1972)
Baker v. McCollan
443 U.S. 137 (Supreme Court, 1979)
Parratt v. Taylor
451 U.S. 527 (Supreme Court, 1981)
Daniels v. Williams
474 U.S. 327 (Supreme Court, 1986)
Robert E. Beitzell v. William H. Jeffrey, Etc.
643 F.2d 870 (First Circuit, 1981)
Raul Medina Jimenez v. Ismael Almodovar
650 F.2d 363 (First Circuit, 1981)
Sidney Bleeker v. Michael Dukakis
665 F.2d 401 (First Circuit, 1981)
Camille Casey v. Carmine Depetrillo
697 F.2d 22 (First Circuit, 1983)
Bessie A. Kauffman v. Puerto Rico Telephone Company
841 F.2d 1169 (First Circuit, 1988)
Torres Ponce v. Jiménez
113 P.R. Dec. 58 (Supreme Court of Puerto Rico, 1982)
S & D Maintenance Co. v. Goldin
844 F.2d 962 (Second Circuit, 1988)
Walentas v. Lipper
862 F.2d 414 (Second Circuit, 1988)
City of New York v. Eastway Construction Corp.
484 U.S. 918 (Supreme Court, 1987)

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Bluebook (online)
761 F. Supp. 217, 1991 U.S. Dist. LEXIS 5527, 1991 WL 64281, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mojica-v-galarza-prd-1991.