Polanco v. Groffinet

29 P.R. 111
CourtSupreme Court of Puerto Rico
DecidedFebruary 25, 1921
DocketNo. 2193
StatusPublished

This text of 29 P.R. 111 (Polanco v. Groffinet) 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
Polanco v. Groffinet, 29 P.R. 111 (prsupreme 1921).

Opinion

Mr. Justice Hutchison

delivered the opinion of the court.

On April 11 and July 17, respectively, of 1912, José Ja-cinto Nicolas Polanco contracted with the Central Santa Juana of Caguas to plant for delivery to such Central during the seasons of 1913 to 1917 inclusive, 250 cuerdas of cane and for delivery during each of the seasons of 1914 and 1915, 100 cuerdas. A liquidation of accounts under a contract for agricultural advances, also dated April 11, 1912, showed that on March 17, 1914, Polanco had already received from and owed August and Constant Goffinet $15,725.55. An instrument dated March 27, 1914, after reciting these facts, proceeds to open a new account with an additional credit of $14,274.45, making a total of $30,000, to secure the payment of which, with interest thereon at ten per cent and an additional amount of $500 to cover costs, expenses and attorney fees, Polanco executed in favor of his said creditors a third mortgage upon the property planted or to be planted as aforesaid and subject to the following conditions:

“(a) The balance left from the $30,000 after deducting the-$15,725.55, or $14,274.45, shall remain in the possession of the mortgagees, August and Constant Goffinet, to be taken in current account by Polanco for expenses incident to the sugar cane plantation in the manner to be stated. All of the sugar obtained from milling the cane of the present season shall be applied to the reimbursement of his account without any limitation, the balance resulting at the end [113]*113of tbe present season to be considered as an advance and carried forward to tbe next season of 1915.
“(b) As Polanco is obliged to deliver all of tbe cane of this crop to the Santa Juana Central, the Goffinet brothers agree to pay him, as aid or compensation, one dollar for each ton of cane delivered, giving him a weekly settlement of the money so to be received, and. tbe amount advanced for harvesting and hauling the cane to the mill during the present season shall be added to the balance of 1914 and paid in 1915.
“(c) The Goffinet brothers shall continue to make the necessary advances from the amount agreed on in this mortgage contract for harvesting, delivering, planting, cultivating and improving the cane from the year 1915, according to the contracts entered into and in force between Polanco and the Soeiété Anonyme des Sucreries de Saint Jean at the rate of $50 per acre of seeded cane and $25 per acre of ratoon cane, it being agreed that these advances shall be made proportionately as Polanco carries on his agricultural operations and provided that the manager of the Santa Juana Central shall consider that the crops under cultivation justify and secure the amount required and when the cane is harvested and delivered at the ears for transportation to the factory.
(cl) The amount shown to be owed by Polanco from the accounting at the close of the season of 1915 as a result of the ordinary advances made during that season, that is, the money received by him for cultivating the cane, shall be repaid by him with the total amount of sugar produced from the cane of the season of 1915 and the Goffinet brothers, or their authorized agents in Porto Rico, are expressly and unreservedly empowered to sell the said sugar for the account of Polanco and any surplus resulting shall be applied to the payment of the balance of 1914 consisting of the amount brought forward and the advances made for the harvesting and delivery of the cane.
“(e) Polanco shall repay in like manner the amounts owed for similar purposes in subsequent seasons, but it is agreed that he must fully discharge his indebtedness to the Goffinet brothers with interest thereon not later than July 31, 1917.
“(f) If during any season the parties should agree to allow any planted cane to remain unharvested because it is considered unfit to be ground, then the said cane shall be appraised and the estimated amount of the advances received therefor by Polanco shall be carried [114]*114forward to tbe next season’s account to be repaid during the season in which the said cane is ground.
(g) If at tile close of the seasons of 1915 and 1916 or either of them Polanco shall not have repaid the ordinary advances, that is, the advances for planting, cultivating, harvesting and delivery, this mortgage obligation shall be considered as matured and the GofSner, brothers, through their agents in this Island, may sue for the recovery of the whole amount due and the foreclosure of the mortgage under the summary proceeding provided for in the Mortgage Paw and its Regulations. ’ ’

On August 24, 1917, summary proceedings for the foreclosure of this mortgage were instituted by petition, which alleged, among other things, “that on the 1st instant the foreclosing mortgagees, together with the defendant mortgagor, practised an accounting of the advances made for agricultural purposes secured by the said mortgage, a balance of $18,086.46 resulting in favor of the plaintiff mortgagees as of the first instant.”

This pleading also offered in the usual form to indemnify “whatever damages and injury may be caused to the debtor or to third persons interested, through malice or negligence in the faithful exposition of the facts stated.”

On August 27, 1917, Polanto moved to set aside the order of the court entered on the 24th of that month requiring payment of the sum alleged by the mortgagees to be due under penalty of sale at public auction of the mortgaged property in case of failure to make such payment, upon the following grounds:

“1. The complaint filed in this foreclosure proceeding by August and Constant Goffinet, the plaintiffs herein, does not conform to the requirements of Article 169 of the Regulations for the application of the Mortgage Law in force in Porto Rico:
“First. Because the instrument evidencing the debt sued for is not attached to the complaint.
“Second. Because the complaint does not show categorically the exact amounts collected as interest or as a part of the principal of the debt.
[115]*115“Third. There is no authentic document showing the exact amount of the balance of the debt due.
“2. The defendant mortgagor further alleges that the plaintiffs have falsely and maliciously set out in the third count of the said complaint that on the first instant the plaintiffs liquidated, with the agreement of the mortgagor, the financing account secured by the mortgage. That allegation of the plaintiffs is absolutely false and could have been made only for the purpose of inducing the court to enter the order which the defendant asks to be reconsidered.”

The mortgagees resisted this motion for the reason, among others, “that the summary foreclosure proceeding cannot he stayed except for the reasons specifically prescribed in article 175 of the Regulations for the Execution of the Mortgage Law. ’ ’

The gist of the ruling denying the motion is contained in the following paragraphs:

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Bluebook (online)
29 P.R. 111, Counsel Stack Legal Research, https://law.counselstack.com/opinion/polanco-v-groffinet-prsupreme-1921.