People v. Rubert Hermanos, Inc.

53 P.R. 741
CourtSupreme Court of Puerto Rico
DecidedJuly 30, 1938
DocketNo. 2
StatusPublished

This text of 53 P.R. 741 (People v. Rubert Hermanos, Inc.) 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. Rubert Hermanos, Inc., 53 P.R. 741 (prsupreme 1938).

Opinion

Mb. Justice Travieso

delivered the opinion of the court.

The purpose of the present, quo warranto proceeding is to try the right and title of the defendant “Rubert Herma-nos, Incorporated,” to continue to do business as a corporation, in the Island of Puerto Rico. The material facts, as alleged in the amended complaint of the People of Puerto Rico, are as follows:

Rubert Hermanos, Incorporated, is a corporation organized under the laws of Puerto Rico, whose articles of incorporation, filed on April 27, 1927, provide as follows:

“Section 4. — The ends and purposes for which and for any of which the corporation is formed and organized are to carry out all or any of the things hereinafter mentioned equally and to the same extent as natural persons might do, to wit:
(a) To engage in the Island of Puerto Rico or elsewhere in the manufacture of sugar, molasses and other by-products derived from sugar.
[743]*743“(c) To erect, purchase, possess, lease or otherwise acquire, and to develop, promote, organize, operate, direct and manage enterprises the end and purpose of which shall be the planting, cultivation and cropping of sugar cane and the manufacture and sale of sugar, refined as well as raw, molasses and other by-products derived from sugar, and to construct, purchase, possess or otherwise acquire cen-trales, grinding mills, establishments and factories with all the buildings, installations, dependencies, accessories and implements that may be necessary or convenient for the manufacture and preparation of sugar, molasses and by-products from sugar. . . .
“(d) .... To engage in agriculture in general. To plant, cultivate and harvest sugar cane, exploiting in such manner or in any other it may deem convenient, by the use of fertilizers and irrigation, either directly or through lessees or croppers (colonos), the lands that it may possess; to purchase, sell and otherwise deal in sugar cane. . . .
“ (/) To purchase, take on lease, possess or otherwise acquire, sell, exchange and transfer or otherwise dispose of real property, rights in the realty, estates and plantations situated in or outside of the Island of Puerto Rico as far as it may be reasonably necessary to make possible the carrying out of the ends and purposes for which the corporation is formed and organized; provided, however, that the right of the corporation to own and control lands in the Island of Puerto Pico shall he limited to five hundred acres only, and shall he subject to the restrictions provided in article three of the Joint Resolution of May 1, 1900, approved by the Congress of the United States of America.” (Italics ours.)

The complaint charges that in violation of the foregoing provisions of its articles of incorporation and of article 3 of Joint Resolution No. 23 (31 Stat. 716, TJ. S. O. A., title 48, section 752) the defendant corporation has acquired and is now the owner with full dominion title of several tracts of land with a total area in excess of five hundred acres, which lands are used by said defendant corporation for planting’, cultivating and harvesting sugar cane; and that the lands so owned, controlled and used by the defendant corporation have a total area of 12,188 acres.

The complainant prays for judgment declaring the defendant’s charter forfeited, ordering the immediate dissolution [744]*744of tlie defendant corporation, enjoining it from doing any further business in Puerto Rico and imposing upon said defendant the payment of a fine, with such other further remedies as in equity and justice may be deemed proper.

A motion to strike out certain parts of the amended complaint, filed March 16, 1937, and a demurrer filed on the same date having been overruled by this court on July 13, 1937, the defendant corporation filed its answer to the complaint on August 19, 1937.

The defendant’s answer, which is in effect a plea in confession and avoidance, sets up the following specific defenses:

1. Defendant admits that it was incorporated for the purposes, among others, of engaging in agriculture, planting canes, owning, purchasing and possessing lands and plantations; but it alleges, that the aforesaid are not all of the ends and purposes for which it was incorporated and that by its articles of incorporation the defendant company was also authorized to engage in the manufacture of sugar, molasses and other by-products derived from sugar cane and to buy, sell and generally deal in sugar and its by-products.

2. That the five hundred acres limitation referred to in paragraph (/) of section 4 of defendant’s articles of incorporation and provided by section 3 of the Joint Resolution of May 1, 1900, is applicable cnly in case the defendant corporation should desire to engage in “agriculture,” as its principal object; and that the other restrictions of said Joint Resolution to which reference is made are applicable to the defendant corporation in carrying out its object or manufacturing sugar, which is an industrial purpose, and said restrictions prohibit the defendant from owning or possessing real property, except such as may be reasonably necessary to carry out the purposes for which the company was organized.

3. That from among the various objects for which it was organized and for which it was authorized by its articles of incorporation, the defendant & rporation chose as its prin[745]*745cipal object the industry of manufacturing and producing sugar and molasses to be sold in the Island and in the United States, for which purpose it acquired the sugar factory known as “Central San Vicente,” which has been equipped to grind up to 350,000 tons of cane per industrial year; that for the purpose of obtaining and securing the raw materials which are indispensable to enable it to engage in the manufacture of sugar, the defendant corporation, in the exercise of one of its incidental or implied powers, acquired also the lands reasonably necessary to obtain from them, by means of the planting and cultivation of sugar cane, part of the sugar cane which it needs each season for the industry of manufacturing sugar and molasses; that the lands so acquired do not supply all of the cane needed by the defendant’s mill each season; that defendant would not be able to engage in the manufacture of sugar if it had to depend entirely on the cane which it might buy from others; that in order to operate its sugar manufacturing business economically and efficiently, the defendant company must raise and supply a large part of the cane to be ground each season, and that the lands which it now owns are those indispensably and reasonably necessary for the production of part of the raw material needed by it; and that in doing the aforesaid things, the defendant has not in any way violated its franchise nor any provision of the Joint Resolution of May 1, 1900.

4. Defendant admits that it owns and controls 12,188 acres of land; but it denies being engaged in agriculture upon the said lands, as its principal corporate end or object. It alleges, in opposition, that part of said lands are used for the cultivation and production of the cane needed by the defendant corporation for the manufacture of sugar and molasses, which manufacture is the principal end or object of the defendant corporation and in which .it has been engaged since it commenced to do business.

5.

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Bluebook (online)
53 P.R. 741, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-v-rubert-hermanos-inc-prsupreme-1938.