Morales v. Arce

18 P.R. 530
Procedural entryThis page is a short order in Morales v. Arce. Read the opinion of the Court — 18 P.R. Dec. 545
Supreme Court of Puerto Rico·Decided June 21, 1912·No. No. 808·Published

Opinion

Mr. Justice MacLeary

delivered the opinion of the court.

This suit was brought in the District Court of Humacao on September 30, 1910, seeking to rescind a contract made between the- defendants assigning certain rights and actions on the ground of fraud affecting creditors of the assignor. Issue was joined on the allegations of fraud and the case was submitted on written briefs and decided by the trial court on June 5, 1911, in favor of the plaintiff, from which judgment the defendant, Arce, the vendee in the contract, alone appealed. The transcript was filed here on February 15 last,, and the case was heard on May 3 following.

On September 30, 1910, José E. Morales filed a complaint in the District Court of Humacao against Jacinto Blanco-Carvajal and Eafael Arce Eollet, wherein he alleged the following facts:

“First. That on March 12, 1907, and prior to that date, the defendant, Jacinto Blanco, was indebted to the firm of Delgado & Diaz, of Aguas Buenas, in the sum of $403.25, and shortly after said date the aforesaid firm sold out all its stock, debits, and credits to various persons, who transferred them to the plaintiff, José E. Morales, on April 5, 1907, from which date Morales was in charge of all the transactions of the said firm.
“Second. That Jacinto Blanco was requested by said firm, Delgado & Diaz, to make payment of the sum owing, which request was again [533]*533made by the plaintiff, all the steps taken to make said collection availing nothing.
“Third. That the other defendant, Bafael Arce,'brother-in-law of Jacinto Blanco, was advised several times of the*circumstances under which Blanco was in relation to his creditors in order that he should use his influence with his brother-in-law to the effect that the latter should make payment of the debts which he had contracted, among which appeared that of the plaintiff.
“Fourth. That knowing ivhat ivas happening to Blanco, his brother-in-law, Arce, always made the other creditors' believe that the sums owing would be properly paid by Blanco, over whom he exercised great influence.
“Fifth. That upon Blanco being requested to make payment to the plaintiff of the sum of $403.25 which he owed, and upon Blanco being notified as aforesaid, he sold to Arce all his rights and actions in the inheritance of his parents with the sole purpose of defrauding his creditors, among whom was the plaintiff, by virtue of the assignment made on April 5, 1907.
“Sixth. That the assignment of rights and actions from Blanco to Arce was subsequent to the date on which Blanco contracted his debt with the firm of Delgado & Díaz, and subsequent also to the date on which the requests and advices referred to were respectively made to Blanco and Arce.
“Seventh. That the plaintiff, being unaware of the fraudulent transfer which was made by Blanco .in favor of Arce, presented a complaint before the Municipal Court of Caguas for the collection of the $403.25 which Blanco was owing him, which suit was concluded by the rendition of a judgment against Blanco which was affirmed by the District Court of ITumacao and the Supreme Court.
‘ ‘ Eighth. That a writ of execution having been issued against the defendant, Blanco, the judgment could not be made effective inasmuch as Blanco did not possess any property but that which he had fraudulently transferred to the defendant, Arce.
“Ninth. That by virtue of the assignment of rights and actions made by Blanco in favor of Arce the latter took part in the proceedings instituted for the division of the estate belonging to the parents of Blanco and all the property belonging to the other defendant was adjudicated to him, and appears in the name of Arce.
“Tenth. That both defendants, Blanco and Arce, have prejudiced the plaintiff on account of said fraud in a sum greater than $600, which he has been required to spend in lawyers’ fees, judicial and extrajudicial expenses for the best' course of the litigation and pro[534]*534ceedings wbieb were brought about by the fraudulent agreement referred to.
“Eleventh. That the plaintiff’s credit against Blanco, considering the interest due and the expenses incurred, amounts to a sum greater than $500.”

The complaint ends with the prayer that a judgment should be rendered in favor of the plaintiff and against the defendants, with the following declarations:

“First. Declaring the rescission and nullity of the deed of assignment of rights and actions executed by Jacinto Blanco Carvajal in favor of his brother-in-law, Rafael Arce Rollet, on March 12, 1907, before the notary of Caguas, Mr. José A. Cajas y Machado, inasmuch as it was made in fraud of creditors.
‘ ‘ Second. Declaring likewise null and void the adjudication made to the defendant, Arce, of the property which was to belong to the other defendant, Blanco, in the testamentary proceedings of his deceased parents, which adjudication was carried into effect by a deed of. adjudication and distribution which was executed on November 22, 1908, before the notary of Caguas, Don Lorenzo Jiménez García.
“Third. Condemning the defendants, Blanco and Arce, to the payment of $600 as damages suffered by the plaintiff on account of the fraudulent acts executed and which were prejudicial to him.
“Fourth. Imposing all the costs of the suit and attorneys’ fees upon the defendant.”

Both defendants having been summoned, Rafael Arce presented a motion to the court requesting that the plaintiff, Morales, should be required to amend his complaint, separately stating therein the several actions joined, which motion was overruled by the court.

Subsequently the defendant, Arce, himself presented demurrers to the complaint because the same did not state facts sufficient to show the several causes of action therein specified, or any of them; the defects of parties defendant as to the nullity of the adjudication made to Rafael Arce, as assignee of Jacinto Blanco, in the division of the property left at the time of.the death of Blanco’s parents, and because the complaint is unintelligible and ambiguous as to the action for [535]*535damages in regard to the defendant, Arce, which demurrers were also overruled by order of November 30, 1910.

Finally Arce answered the complaint, admitting in his answer that by a public deed of March 12, 1907, Blanco made bim an assignment, for a good consideration, of the rights and actions which belonged to him according to the testamentary proceedings in relation to the inheritance of his der ceased parents, said assignment having been agreed upon in June, 1906, when no current account had yet been opened with Delgado & Díaz; and that by virtue of said assignment all the property which was to belong to Blanco in the proceedings instituted for the division of the estate was adjudicated to him; but he denies the existence of a credit of $403.25 against.

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Morales v. Arce, 18 P.R. 530 (prsupreme 1912).

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