Puerto Rico Housing Authority v. Sagastivelza Alvarez

72 P.R. 262
Supreme Court of Puerto Rico·Decided March 19, 1951·No. No. 10173·Published

Opinion

Me. Justice Maeeero

delivered the opinion of the Court.

By judgment rendered by the Court of Eminent Domain of Puerto Rico on June 6, 1949 the farm having an area of 38.24 cuerdas and owned by defendant Sagastivelza Alvarez was declared definitively condemned in favor of Puerto Rico Housing Authority, plaintiff herein. As total compensation for the property with its accessions it fixed the sum of $14,400, of which amount the plaintiff had only to deposit $3,698 for it had deposited $10,702 on requesting the order of taking. As to said difference it was stated in the judgment that the same would be deposited “without interest of any kind considering that defendant Saturnina Sagas-tivelza has retained, after condemnation, the possession and enjoyment of the condemned farm.”1

The plaintiff as well as the defendant appealed from said judgment. Since the only error assigned by the plaintiff has the same scope as defendant’s second assignment, that is, since according to'plaintiff the lower court erred “in deciding: (1) [265]*265that the plaintiff was not entitled to the restitution of the fruits received by the defendant during 1945, 1946 and 1947 from the crops planted without its authorization after the order vesting title was rendered; (2) that there was no rule applicable to the solution of the legal problem raised and it should therefore be decided pursuant to § 7 of the Civil Code while defendant alleges that the lower court erred in “not ordering the plaintiff to pay the defendant interest at 6 per cent from December 11, 1944 on the difference between the sum deposited and that fixed by the court as the total compensation for the condemned farm,” we shall discuss both errors together.

When the trial of this case was in its last stages, and while Miguel Chico, defendant’s son, was testifying, after he was questioned by the plaintiff on the production of the condemned farm and after Chico had answered the questions put to him on the matter, said plaintiff asked leave of the court to amend the prayer of its complaint to conform it to the evidence in the sense that the sum of five or six thousand dollars which the defendants had obtained as profit from the cultivation of the farm after the latter had passed to the Housing Authority should be deducted from the compensation that might be awarded. The defendant objected and after hearing both parties extensively, the court stated that the point was very interesting but that it was not in a position to decide it immediately and left pending the proposed amendment until after the court were duly informed by both parties. At the same time it overruled a motion for an inspection. The defendant took an exception.

In the course of its opinion, when touching on the question thus raised by both parties, the Court of Eminent Domain expressed itself as follows:

“In addition to the question concerning the value of the condemned property there was another question of whether the plaintiff had a right to recover the net value of the fruits received by defendant Saturnina Sagastivelza during the three [266]*266years subsequent to the condemnation, that is, 1945, 1946 and 1947, during which years she continued in the. possession and enjoyment of the condemned farm notwithstanding the fact that the title to the same had been vested in the plaintiff. From the whole proceeding it is clear that the defendant continued in the possession of the farm during the said years. Defendant’s son, testifying for her, admitted having managed the immovable during'said years in the name of the defendant and having received for her the fruits yielded by the same.
“The plaintiff bases its claims on §§ 287, 288, 289, 292, 298, 297, 298, 300, 382 and 283 of the Civil Code.
“Both parties introduced extensive briefs on this matter.
“The Court has serious doubts on the applicability of the provisions quoted by the plaintiff to the problem involved in the case at bar. In the first place the defendant continued in the possession of the property with the plaintiff’s knowledge without the latter exhausting the relief provided by the Act to deprive the defendant of said possession. In addition, on June 4, 1947 the defendant obtained judgment in the District Court of Arecibo wherein she recovered the title to the condemned property and although this judgment was reversed by the Supreme Court and said reversal affirmed by the Circuit Court of Appeals of Boston, apparently during said time the defendant possessed the property under the protection of the judgment of the District-Court of. Arecibo.
“In view of the particular circumstances surrounding this case, the court believes that there is no specific rule applicable to the solution of the problem involved and under those conditions it believes that it should apply § 7 of the Civil Code which provides that ‘when there is no statute applicable to the case at issue, the court shall decide in accordance with equity, . . .’ So, applying an equitable criterion to the circumstances of the case, the Court denies the restoration of the fruits sought, but considering the use given by defendant to the condemned farm, it will not grant interest to the defendant on the difference bettveen the compensation fixed and- the deposit made in court by the plaintiff at the commencement of the proceeding. The court wishes to make clear that this decision can not be regarded as a uniform rule for all the cases where a defendant in a condemnation proceeding continues in the possession and enjoyment of the. property subsequent to the vesting of the [267]*267title in favor of the plaintiff party, for each case should be decided according to its particular circumstances, as was done in this case.” (Italics ours.)

■ It was an error of the lower court to decide the question as it did. By express provision of § 5(b) of the Eminent Domain Act of March 12, 1903, (p. 50) ; Revised Statutes of 1911 (p. 86) as amended by Act No. 105 of May 7, 1948 (p. 240) it is ordered that “in any judgment rendered in a condemnation proceeding for the acquisition of private property ... in which the amount determined by the court as just compensation for such property ... is greater than the amount fixed by the said plaintiff and deposited in the court as just compensation for such property or the rights therein, The People of Puerto Rico shall pay the amount of the difference between the sum thus fixed by the said plaintiff and deposited by him in the court and the sum that for the purpose has been determined by the court as just compensation for said property or the rights therein, the object of such proceeding, with interest at the rate of six per centum per annum on such difference, to be computed from the date of the acquisition of such property ... up to the daté of the payment of such difference.” In view of such an imperative provision it was the duty of the lower court to order the condemnor to pay interest at 6 per cent on the difference between the amount fixed as a just compensation for the condemned immovable and the sum deposited by the con-demnor, from December 11, 1944, date of the taking, until the payment of said difference.

Furthermore, since the Court of Eminent Domain had full knowledge of the fact that the plaintiff had the ownership in fee simple of the condemned farm,2

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Puerto Rico Housing Authority v. Sagastivelza Alvarez, 72 P.R. 262 (prsupreme 1951).

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Related

United States v. Miller
317 U.S. 369 (Supreme Court, 1943)
Sagastivelza v. Puerto Rico Housing Authority
171 F.2d 563 (First Circuit, 1949)