People v. Henneman

60 P.R. 58
CourtSupreme Court of Puerto Rico
DecidedFebruary 27, 1942
DocketNo. 10
StatusPublished

This text of 60 P.R. 58 (People v. Henneman) 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
People v. Henneman, 60 P.R. 58 (prsupreme 1942).

Opinion

Me. Justice SuydeR

delivered the opinion of the court.

This is a petition for removal of an information in the nature of quo warranto from this court to the District Court of the United States for Puerto Eico. The information was filed in this court, after obtaining leave therefor, by the People of Puerto Eico against Harry E. Henneman, Hey-ward E. Boyce, Harry N. Baetjer, Louis Naetzker, A. H. S. Post, James A. Stevenson, and Clarence K. Bowie, as trustees of Eastern Sugar Associates, and against Eastern Sugar Associates, a trust.

The information alleges that “Defendant Eastern Sugar Associates is an entity which describes itself as a trust, and was organized as such trust under the laws of the State of Maryland, United States of America, by virtue of a declaration of trust under date of January 16, 1934, the present domicile and situs of said trust being the Island of Puerto Eico. ’ ’

[60]*60The information alleges that “ Defendant Eastern Sugar Associates has by the declaration of trust constituting it and by its methods of doing business invested itself for all practical purposes with the attributes of a corporation.” Under this allegation the information contains 11 subparagraphs setting forth terms of the said declaration of trust.

The information alleges that “said defendant Eastern Sugar Associates now controls through ownership some 34,000 acres of land and some 21,000 additional acres through leaseholds in Puerto Eico, on which lands it now devotes itself to agriculture, contrary to the provisions of the local private corporation statute and to the provisions of the Joint Resolution No. 23, 56th Congress, First Session, approved March 1, 1900 (31 Statutes at Large 716, 48 U.S.C.A., §752) limiting landholdings by corporations in Puerto Eico to 500 acres.”

The prayer is for “a judgment (a) declaring that defendant Eastern Sugar Associates is 'to all practical purposes a foreign corporation doing business in this Island, as said term ‘corporation’ is used in statutes of local application limiting landholdings by agricultural corporate entities to 500 acres; (b) declaring that defendant Eastern Sugar Associates devotes itself to agriculture in Puerto Rico on lands in excess of 500 acres; (c) ordering defendant Eastern Sugar Associates to cease and desist from doing further business in Puerto Eico; (d) imposing a fine upon it, and (e) making such other pronouncements as in justice and equity may seem meet.”

The petition for removal, filed by the aforesaid individuals as trustees of Eastern Sugar Associates, alleges that this is a civil suit in equity and ‘ ‘ although entitled as though it were a proceeding in the nature of quo warranto, is in fact and in law a proceeding for a declaratory judgment... ” The petition alleges that this action involves a controversy where all of the parties on one side are citizens of states of [61]*61tlie United States, not domiciled in Puerto Rico. It goes on to allege that “the plaintiff has improperly attempted to make it appear that in addition to yonr petitioners there is another defendant in this proceeding, namely, ‘Eastern Sugar Associates, a Trust’... ”, and that the said term “is merely a collective designation adopted by your petitioners in order to facilitate reference to them in their capacity as Trustees.”

In addition to the alleged diversity of citizenship, the petition sets up as a further ground for removal that the suit arises under the laws of the United States.

The Government has filed a “Reply to Defendants’ Petition for Removal.” The reply denies that this is a proceeding in equity or that it is a suit for a declaratory judgment. The reply alleges that this is a statutory action in the nature of quo warranto, that if this is “ a proceeding for a declaratory judgment and not one in the nature of quo warranto . . . this Hon. Court would lack jurisdiction over the matter since proceedings for declaratory judgments have to he instituted originally before the district courts . . . ”, and that “if this Hon. Court lacks original jurisdiction over this proceeding, then this cause is not removable to the U. S. District Court for Puerto Rico.”

In opposing the petition for removal, the Government contends in its brief that (1) if this is a suit for a declaratory judgment, the petition for removal can not be granted as we have no original jurisdiction in such .a suit; (2) this is not a suit arising under the laws of the United States; and (3) diversity of citizenship does not exist in this case as Eastern Sugar Associates, a trust, is domiciled in Puerto Rico.

The Government is correct in its contention that we have no original jurisdiction in a suit for a declaratory judgment and that we must therefore dismiss the petition for removal for lack of jurisdiction of the suit as a whole if we conclude that this is a petition for a declaratory judgment. Venner [62]*62v. Michigan Central Railroad Co., 271 U. S. 127; Lambert Run Coal Co. v. Baltimore & Ohio Railroad Co., 258 U. S. 377.

However, we are satisfied that this is an information in the nature of quo warranto and not a petition for a declaratory judgment. In that event, our original jurisdiction in this suit exists by virtue of Acts Nos. 33 and 47 of 1935 (Laws of Puerto Rico, 1935, Spec. Sess., pp. 418 and 530). It may be that a suit for a declaratory judgment could have been brought by the Government to determine the status of Eastern Sugar Associates and the lands it allegedly owns. Such a suit would have merely declared the rights and duties of the defendants. Borchard on Declaratory Judgments, pages 155, 156, 275, 315, 318, 362, 363. But the Government chose to bring, pursuant to leave granted by this court, a typical quo warranto suit with a prayer for affirmative relief; namely, that the defendant Eastern Sugar Associates cease doing business in Puerto Rico and that a fine be imposed on it. This suit is similar to People v. Central Aguirre Associates, 59 P.R.R. 407, in which Mr. Justice Todd, Jr., said at page 416:

“The complaint in this ease has as its sole and principal purpose : to determine whether the defendants by reason of the alleged unlawful combination, are violating the 500 Acres Law and, if so, to apply the correspondmg legal sanction to each of them.” '(Italics ours).

We therefore conclude that we have jurisdiction of this suit, and must pass on the petition for removal. For this suit to be removable, it must be a suit “of a civil nature, at law or in equity” .either “arising under the Constitution or laws of the United States ...” or a suit in which “all of the parties on either side of the controversy are citizens . . '. of a . . . State or States . . . wherein the matter in dispute exceeds . . . $3,000.”

[63]*63While the Government denies that this is a suit in equity, the parties would seem to he in agreement that this 'is a civil suit. The authorities are cleat on this question. The writ of quo warranto, originally a civil remedy of the crown, was supplanted by a proceeding in the form of a criminal information which in turn became an action substantially civil in nature. Note, Quo Warranto against Private Corporations, 41 Harv.

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Bluebook (online)
60 P.R. 58, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-v-henneman-prsupreme-1942.