Piñero v. Grillasca

67 P.R. 853
CourtSupreme Court of Puerto Rico
DecidedDecember 19, 1947
DocketNo. 17
StatusPublished

This text of 67 P.R. 853 (Piñero v. Grillasca) 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
Piñero v. Grillasca, 67 P.R. 853 (prsupreme 1947).

Opinion

Me. Justice Snyder

delivered the opinion of the Court.

Section 29 of the Municipal Law1 provides that the Mayor of a municipality may be removed for just cause by the Municipal Assembly on charges made by the Governor. The Governor filed seventeen charges against Andrés Grillasca, Mayor of Ponce. After a trial on the merits, the Municipal Assembly unanimously dismissed all the charges, and the Governor appealed.

I

The first charge is that Grillasca had a direct and indirect interest in contracts entered into between the Municipality and the firm of García & Cintrón for crushed stone and gravel, in violation of § 10 of the Municipal Law and §§ 202 and 203 of the Political Code.2

The alleged interest of Grillasca in these contracts is predicated on his signature, with Luciano Martiniano Garcia and Juana Clavell, in 1943 of a note in favor of the Banco de Ponce for a loan of $17,500. The proceeds of this loan were used by Garcia & Cintron to purchase the properties of Atlantic Ore Co. which operated the quarry from which the stone and gravel covered by the contracts were obtained.

The note was signed by Grillasca and the others as debtors in solido. However, the Municipal Assembly found as a fact that Grillasca had signed as a surety for Garcia. This finding is amply supported by the testimony and the books of the bank. We cannot, as the appellant urges us, discard this finding in the face of the uncontroverted testimony that Grillasea, although in form a debtor in solido, was in fact a surety for Garcia. Indeed, this finding becomes irresistible in view of the undisputed fact that García & Cintrón received [856]*856the money and payments oh the loan were thereafter made by García & Cintrón,

The Municipal Assembly also found that at the time Grillasca signed the note he did not know the loan was being made in order that García & Cintrón could use the proceeds to purchase the properties of Atlantic Ore Co. The Municipal Assembly also found that Grillasca did not know the proceeds were so used until after the firm of García & Cintron was constituted. However, Grillasca of course knew between 1943 and 1947, when these contracts were being awarded to García i& Cintron, that the proceeds of the loan for which he was a surety were used to establish the firm of Garcia & Cintron.

In view of these facts, the question to be determined here is not whether § 10 of the Municipal Law bars the Mayor from being a surety in connection with a specific contract between a vendor and the Municipality. That question would arise if, for example, the Mayor were a surety for the vendor on a performance bond. Here the question is rather whether the Mayor has a direct or indirect interest within the meaning of § 10 in a contract between the Municipality and a firm under the following conditions: (1) the Mayor was a surety on a general loan to one of the partners of the firm; (2) the general loan was made prior to the contracts between the Municipality and the firm; (3) the general loan was in no way related to the specific contracts between the Municipality and the firm.

This question has never been decided in this jurisdiction. The cases cited by the appellant are not in point. In those cases it was clearly established that the Mayor had a direct pecuniary interest in the specific contracts. People ex rel. Pérez v. Manescau, 33 P.R.R. 703; Días v. Charneco, 48 P. R.R. 521; Municipal Assembly v. Gonzáles, Mayor, 55 P.R.R. 526, 541-43.

The appellant also relies on four cases from other jurisdictions ; i.e., Lessieur v. Inhabitants of Rumford, 93 A. 838 [857]*857(Me. 1915); James v. City of Hamburg, 156 N. W. 394 (Ia. 1916); Lincoln v. First Nat. Bank, 19 N.W. (2d) 156 (Neb.1945); and Matter of Clamp, 33 N.Y.S. 250 (1900). These eases likewise do not furnish the answer to our problem. In the first place, the question in those cases was whether the contracts were valid, not whether the public officers involved should be impeached. Secondly, they involved situations where the official had a direct and specific connection with the contract as such, and not as here where the Mayor was a surety for the vendor on a general loan without reference to the contracts between the vendor and the Municipality. Finally, Matter of Clamp was decided under a New York statute which provides that a public officer shall not be directly or indirectly interested in any contract with the government ‘ ‘ either as principal, surety or otherwise . . . ”. Section 10 does not specifically prohibit the Mayor from being a surety for such a contract.

Assuming, without deciding, that we would hold, despite the absence of the specific language found in the New York statute, that § 10 inhibits a Mayor from being a surety for the vendor in a contract between the latter and the Municipality, that still does not answer the question of whether the Mayor nevertheless may as here be a surety for the vendor on a general loan that is in no way related to the contracts between the vendor and the Municipality.

The parties have cited no cases on this point. The closest cases we have found are those passing on whether statutes like § 10 apply to a case where the public official is a general creditor of the vendor rather than his surety. The cases are divided on whether contracts between the vendor and the municipality are prohibited under such circumstances. Annotation, 73 A.L.R. 1352.

We are aware of factors on both sides of this question. As a matter of public policy, the Mayor might be tempted to favor a vendor who owed him money on some other independent private transaction. Yet some of the cases hold [858]*858that this danger is remote, and that the statute applies only when the interest of the Mayor is real and pecuniary.

We need not decide at this time which rule we would follow. The contracts are not being challenged here as void. Indeed, if they were being so challenged, Grillasca could point out that, even if we held that the Mayor may not award contracts to a vendor if the former is a general creditor of the latter, here the Mayor was one step removed: he was a general surety, not a general creditor of García & Cintrón. In addition, his dealings were with an individual partner, not with the vendor firm. In any event, it may be that as a close question of law it might perhaps be ultimately concluded, if the issue ever arose, that the contracts between García & Cintrón and the Municipality were void merely because the Mayor was a surety on a loan to Garcia which had no relation to the contracts between the Municipality and García & Cintrón. But in the absence of willful wrongdoing by the Mayor, which the Municipal Assembly found wholly lacking here, we cannot hold that the Mayor must be impeached because we may some day hold that he decided incorrectly a close question of law, on which other courts are divided and on which we have not yet passed. See footnote 6.

II

The second charge is that by virtue of the aforesaid contracts the Mayor created a monopoly in favor of the firm of García & Cintrón, which consists of Garcia, the brother-in-law of the Mayor, and Cintrón, the minor son of Juana Clavell, Treasurer and Director of Schools of Ponce. Before discussing this charge, we pass to the next group of charges.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

United States v. California
332 U.S. 19 (Supreme Court, 1947)
State Ex Rel. Fletcher v. Naumann
239 N.W. 93 (Supreme Court of Iowa, 1931)
Lesieur v. Inhabitants of Rumford
93 A. 838 (Supreme Judicial Court of Maine, 1915)
Keane v. Keane
33 N.Y.S. 250 (New York Supreme Court, 1895)
Lopez v. Martorell
59 F.2d 176 (First Circuit, 1932)
State ex rel. Barker v. Meek
127 N.W. 1023 (Supreme Court of Iowa, 1910)
City of Lincoln v. First National Bank
19 N.W.2d 156 (Nebraska Supreme Court, 1945)

Cite This Page — Counsel Stack

Bluebook (online)
67 P.R. 853, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pinero-v-grillasca-prsupreme-1947.