Overseas Military Sales Corp. v. GIRALT-ARMADA

399 F. Supp. 2d 33, 2005 U.S. Dist. LEXIS 27987, 2005 WL 3018661
CourtDistrict Court, D. Puerto Rico
DecidedSeptember 30, 2005
DocketCIV. 04-1858CCC
StatusPublished

This text of 399 F. Supp. 2d 33 (Overseas Military Sales Corp. v. GIRALT-ARMADA) 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
Overseas Military Sales Corp. v. GIRALT-ARMADA, 399 F. Supp. 2d 33, 2005 U.S. Dist. LEXIS 27987, 2005 WL 3018661 (prd 2005).

Opinion

OPINION AND ORDER

CEREZO, District Judge.

Overseas Military Sales Corporation (Overseas), a company dedicated to selling automobiles exclusively on the military base at Fort Buchanan, Puerto Rico, has sued Puerto Rico’s Department of Consumer Affairs (DACO) for a declaratory judgment that it is subject only to the United States’ jurisdiction on the matter of vehicle sales and their warranties pursuant to the federal enclave doctrine and that DACO has infringed said doctrine by entertaining and presiding over complaints filed against it.

Overseas filed an Emergency Motion for Preliminary Injunction on September 14, 2004 (docket entry 8). Defendants filed a Motion to Dismiss (docket entry 24). Plaintiff also filed a Motions for Final Entry of Default Judgment against Nieves-Nieves (docket entries 18, 21, and 22). The matters were referred to the Magistrate Judge (docket entry 27 and 30), who issued two Report and Recommendations (docket entries 39 and 43). Overseas filed a Motion for Default Judgment and Requesting Adoption of the Magistrate Judge’s Report and Recommendation (docket entry 40) as to Nieves-Nieves.

We must determine whether this action would require this federal court to re-adjudicate the very same issues that were determined by the Supreme Court in Rodriguez-Planell v. Overseas Military Sales Corp., 2003 JTS 141, 2003 WL 22228004 (2003) 1 , and, whether it is an attempt to obtain direct review of the Puerto Rico Supreme Court’s decision in the lower federal courts. ASARCO v. Kadish, 490 U.S. 605, 109 S.Ct. 2037, 2048, 104 L.Ed.2d 696 (1989). Rodriguez Planell is a case in which the factual scenario is essentially identical to ours; that is, a dissatisfied car owner, resident of Puerto Rico, purchased his vehicle from Overseas and filed a complaint with DACO. The Supreme Court of Puerto Rico there ruled that “a Puerto Rico resident may petition for such remedies as are provided in the Motor Vehicle Warranty Regulations, approved by the Consumer Affairs Department (hereinafter DACO, its Spanish Acronym), to bring a claim for the alleged defects of an automobile which he acquired at a distributor authorized to do business exclusively within military bases.” Id., at 106. In sum, we must determine whether this lawsuit, as stated by our Circuit in Federación de Maestros de Puerto Rico v. Junta de Relaciones del Trabajo de Puerto Rico 410 F.3d 17, 26 (1st Cir.2005), “shares the characteristics of the suits in Rooker and Feldman, i.e. loser in state court invites federal district court to overturn state-court judgment.”

The Magistrate Judge concluded at page 14 of her report (docket entry 43) that “this Court does not have subject matter jurisdiction to entertain this case under the ‘Rooker Feldman Doctrine.” She concluded that the Supreme Court of Puerto Rico ruled “upon the same controversy we face today in this case,” Report and Recommendation, at page 9, referring to that court’s ruling quoted above from Rodriguez Planell. The Magistrate Judge correctly outlined the facts of said case: Rodriguez Planell bought from Overseas Military Sales Corp. (“Overseas” is a plaintiff in this case and a defendant in the Commonwealth case) a 2000 Jeep Chero *36 kee, filed. a claim before DACO against Overseas alleging it had paint defects and Overseas appeared before DACO, without submitting to the jurisdiction of said agency and requested dismissal of the claim. It contended that it had its facilities at Fort Buchanan, engaged in selling motor vehicles exclusively on military bases in Puerto Rico and conducted business solely with members of the armed forces pursuant to a ear sales program of the United States Department of Defense. It argued, therefore, that DACO lacked jurisdiction to decide the controversy and that local law did not apply to it.

Overseas requested review by the Puerto Rico Circuit Court of Appeals which held that DACO had no jurisdiction over the matter since jurisdiction of local fora over controversies or events occurring on a United States military base in Puerto Rico is limited to cases where there is no applicable federal law and the failure to apply local law would result in a legal loophole. The Supreme Court of Puerto Rico reversed, holding that “pursuant to the ‘Federal enclave’ doctrine, the United States Congress exercised its exclusive jurisdiction within Fort Buchanan by expressly allowing the application of such State laws Favoring consumers as were not inconsistent with the provisions of the Magnuson-Moss Act, supra. Since the Motor Vehicle Warranty Regulations, supra, do not conflict with the aforesaid federal law, appellee has available to him such remedies as are provided in local law to bring an action for alleged defects exhibited by the vehicle acquired from overseas” Rodríguez Planell, supra, at 110, 2003 WL 22228004.

Rodriguez Planell explained, with regard to the federal enclave doctrine, that:

[W]hen the events in controversy take place within a United States military base, we have ruled on the jurisdictional conflict by adopting the Federal enclave doctrine. In this way, in Roberts v. U.S.O. Council of P.R., 145 D.P.R. 58 (1998) ... we explained that said doctrine-which is derived from Art. I, Section 8, Clause 17, of the U.S. Constitution-postulates that the Federal Congress has exclusive jurisdiction to establish what law shall govern within United States military bases. Nevertheless, we clarify that such plenary power does not extend, absent more, to conferring exclusive jurisdiction on the Federal courts to decide such controversies as are produced there. That is to say, according to the standard set forth in Roberts, with the military bases of, the United States, the Federal government has exclusive jurisdiction in the legislative arena, but not in the judicial.
Regarding this point, we have stated that the concept of “legislative jurisdiction” refers to who has the authority to regulate, through legislation, a given subject matter, event or situation. Put another way, “legislative jurisdiction” refers to what law applies to a given controversy.... While, on the other hand, “judicial jurisdiction refers to what court (State or Federal) is authorized to decide such controversies as arise within the enclave”.
The essence and scope of the aforesaid “legislative jurisdiction” were developed by this Court in Quiles Vda. de Font v. Colsa, Inc., 147 D.P.R. 360 (1999). On that occasion we stated that, in spite of the fact that ordinarily the legislation applicable to a controversy originating on a military base is Federal law, this presupposes that Congress effectively has legislated on the matter to be decided. In other words, that the application of Federal law to such situations is conditioned on Congress, by virtue of the plenary power vested in it to regulate the activities of the military base, having legislated on the subject

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Bluebook (online)
399 F. Supp. 2d 33, 2005 U.S. Dist. LEXIS 27987, 2005 WL 3018661, Counsel Stack Legal Research, https://law.counselstack.com/opinion/overseas-military-sales-corp-v-giralt-armada-prd-2005.