People of Puerto Rico v. Eastern Sugar Associates

156 F.2d 316, 1946 U.S. App. LEXIS 2575
CourtCourt of Appeals for the First Circuit
DecidedJune 28, 1946
Docket4112
StatusPublished
Cited by54 cases

This text of 156 F.2d 316 (People of Puerto Rico v. Eastern Sugar Associates) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
People of Puerto Rico v. Eastern Sugar Associates, 156 F.2d 316, 1946 U.S. App. LEXIS 2575 (1st Cir. 1946).

Opinion

WOODBURY, Circuit Judge.

This appeal is from an order of the District Court of the United States for Puerto Rico dismissing a petition to condemn approximately 3,100 acres of land situated on the Island of Vieques owned by the appellee, Eastern Sugar Associates, subject to a mortgage held by the appellee, National City Bank of New York, on the ground that the petition fails “to state a public use or purpose for which private property may be acquired by eminent domain.”

By Act Ño. 26 approved April 12, 1941, (Laws of Puerto Rico 1941, p. 388 et seq.) called the “Land Law of Puerto Rico,” the insular Legislature launched a far-reaching program of agrarian reform. This law is long and rather complicated. At the moment it will suffice to say that after a lengthy “Statement of Motives” the Act creates a board in the “nature of a governmental agency or instrumentality of The People of Puerto Rico” in the Department of Agriculture and Commerce, to be called the “Land Authority of Puerto Rico”, “for the purpose of carrying out the agricultural policy of The People of Puerto Rico as determined by this Act, and to take the necessary action to put an end to the existing corporative latifundia in this Island, block its reappearance in the future, insure to individuals the conservation of their land, assist in the creation of new landowners, facilitate the utilization of land for the best public benefit under efficient and economic production plans; provide the means for the agregados 1 and slum dwellers to acquire parcels of land on which to build their homes, and to take all action leading to the most scientific, economic and efficient enjoyment of land by the people of Puerto Rico.” Then the Act goes on to make detailed provisions with respect to the organization, powers, and duties of the Land Authority, and to authorize it both to expropriate lands held in violation of the so called 500 acre provision of the Organic Act (39 Stat. 964, 48 U.S.C.A. § 752) and also to request the Insular Government to acquire on its behalf by eminent domain “title to any real property or estate thereon (sic) which might be necessary or advisable for the purposes of the Authority.” The act *319 fully establishes the procedure to be followed in condemnation proceedings and provides, apparently adequately, for payment of “just compensation” for property so taken.

As this Land Law stood, after amendment, at the time the present condemnation proceedings were instituted, the Land Authority was authorized to dispose of lands which it acquired for three purposes; (1) in small parcels to individual agregados for the erection of their dwellings, (2) in somewhat larger parcels to individual farmers for subsistence farms, and (3) in large parcels by lease to expert farmers, agronomists, or other qualified persons with experience in agricultural management, for the operation of “proportional-profit” farms as described in detail in §§ 64 — 73 of the Act.

Following enactment of the Land Law, the Insular Legislature by Act No. 90, approved May 11, 1944, popularly called the “Vieques Act”, made specific provisions lor the relief of economic distress which it said existed on the small outlying islands of Vieques and Culebra, both municipalities of Puerto Rico. In its “Statement of Motives” this statute refers to the condemnation of some 20,000 acres of land on Vieques by the United States for Naval purposes (see Baetjer et al. v. United States, 1 Cir., 143 F.2d 391), which it said paralyzed the sugar industry on that island and caused acute economic distress to its inhabitants which could only be relieved by a renewal of that industry there, and the establishment thereon of a distillery, and then it provides:

“Section 1. — The Land Authority is directed and empowered to acquire, through purchase or condemnation proceedings, or in any other form or by any other means compatible with the laws of Puerto Rico, the lands belonging to the Eastern Sugar Associates in the Island of Vieques, as well as any other lands in the Island of Vieques, Puerto Rico, that may be necessary, in the judgment of the Land Authority of Puerto Rico, to carry out the provisions of this Act.

"Section 2. — As soon as the Land Authority acquires these lands from the Eastern Sugar Associates, it shall establish the consequent organization of the same and shall devote them principally to the planting of sugar cane and of any other products that may be necessary to develop in Vieques the sugar industry and the liquor industry.”

With this brief outline of the most pertinent statutory provision's, we turn to the proceedings in the case at bar.

In accordance with the provisions of Act No. 26 of 1941, (The Land Law) the Governor of Puerto Rico on March 20, 1945, "representing The People of Puerto Rico, in the name and on order of the Land Authority,” filed a petition in the District Court of the Judicial District of Ilumacao (an Insular Court) for the condemnation of the lands on the Island of Vieques here in litigation. In this petition it is alleged:

“3. The Land Authority desires to condemn the said lands to carry out all of the objects or purposes of the Land Law of Puerto Rico in force, that is to say:

“(a) Distribution and transfer of lands to a number of ‘squatters’ (‘agregados’) at the rate of one parcel of not less than one fourth of a cuerda 2 nor more than three cuerdas per family, in which said ‘squatters’ may erect their dwellings, in harmony with the provisions of Title Fifth of the said Land Law.

“(b) Distribution and operation of lands in individual farms whose area shall fluctuate between five (5) and twenty-five (25) cuerdas, in harmony with the provisions of Title 25 and following of the said Land Law.

“(c) Establishment of farms of proportional benefit whose area shall fluctuate between one hundred (100) and five hundred (500) acres to be dedicated principally to the planting and cultivation of sugar cane in harmony with the provisions of Title Fifth of the said Land Law and Law numbered 90 approved May 11, 1944.”

Then the petition goes on to characterize the above purposes as “of public utility” and to aver that the acquisition of the property “is also a public necessity”; that $270,326.33 “is the just and reasonable compensation which the plaintiff should pay for the acquisition of the said properties, *320 with all their plantations, improvements, uses,' servitudes and appurtenances, as well as the buildings” thereon, and that the above sum has been deposited in the office of the Secretary of the Court for the use of the persons entitled thereto.

On the same day that this petition was filed, and also in accordance with the provisions of Act No. 26, supra, the Governor filed in the same court a Declaration of Taking in which it is recited that “the People of Puerto Rico have been requested to condemn” the properties owned by Eastern Sugar Associates on the Island of Vieques here involved; that condemnation is sought “under the authority of, and in conformity with” the Land Law, the Vieques Act, and the Insular Condemnation Act of March 12, 1903, Laws Puerto' Rico 1903, p.

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Cite This Page — Counsel Stack

Bluebook (online)
156 F.2d 316, 1946 U.S. App. LEXIS 2575, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-of-puerto-rico-v-eastern-sugar-associates-ca1-1946.