Recetas Por Menos, Inc. v. Five Development Corp.

368 F. Supp. 2d 124, 2005 WL 1039150
CourtDistrict Court, D. Puerto Rico
DecidedMay 3, 2005
DocketCivil 02-1935(SEC)
StatusPublished
Cited by2 cases

This text of 368 F. Supp. 2d 124 (Recetas Por Menos, Inc. v. Five Development Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Recetas Por Menos, Inc. v. Five Development Corp., 368 F. Supp. 2d 124, 2005 WL 1039150 (prd 2005).

Opinion

AMENDED OPINION AND ORDER

CASELLAS, District Judge.

Pending before the Court is Deféndants’ motion for summary judgment (Docket # 108). Plaintiffs opposed said motion (Docket # 115) and Defendants replied 1 (Docket # 136). After carefully reviewing the parties’ filings and the applicable law, for the reasons set herein, Defendants’ motion for summary judgment will be GRANTED.

Procedural and Factual Background

Plaintiff Recetas Por Menos, Inc. (“RPM”) filed the instant action against Defendants Five Development Corp. (“Five Development”); Farmacias El Amal, Inc. (“El Amal”); Rafael Pérez Diez, 2 administrator of Five Development; *128 Saleh Yassin, 3 administrator of El Amal; and several unnamed defendants (collectively referred to as “Defendants”) on June 18, 2002 seeking damages (trebled in accordance with the Antitrust Laws), interests, costs, and attorneys’ fees, as well as specific performance and injunctive relief (Docket # 1). Plaintiff amended the complaint several times. The last version, the Third Amended Verified Complaint, was filed on March 26, 2004 (Docket # 79). In its last complaint, Plaintiff adds as Defendants PMC Marketing Corp. (“PMC”) and YMAS Inventory Management (“YMAS”). 4 Co-plaintiff Puerto Rico Pharmaceutical, Inc. (“PRPI”), Co-plaintiff RPM’s supplier, also appears as plaintiff (collectively hereinafter “Plaintiffs”). 5

Per the Third- Amended Verified Complaint, Plaintiffs claim violations to Sections 1 and 2 of the Sherman Antitrust Act, 15 U.S.C. §§ 1-2, and Sections 4 and 16 of the Clayton Act, 15 U.S.C. §§ 15(a), 26, as well as violations' to Puerto Rico’s Anti-Monopoly Law, 10 L.P.R.A. §§ 257-276. Plaintiffs also request specific performance and damages under Article 1802 .of the Puerto Rico Civil Code, 31 L.P.R.A. § 5141 (Docket # 79).

Plaintiffs’ claims arise out Five Development’s nonrenewal of Plaintiffs’ commercial lease at the Villa Fontana Shopping Center. Plaintiffs allege that Five Development did not renew the lease agreement because it entered into a contract with El Amal Group which requires that no other pharmacy be allowed to operate at the same shopping center (Docket # 79, ¶¶ 18, 35-36). Plaintiffs argue that El Amal Group “exercises monopolistic and/or oli-gopolistic power in the relevant market in which RPM and El Amal Group are located and compete” and that “El Amal Group and FIVE have colluded with the express purpose of putting RPM out of business and eliminating competition in the relevant market.” (Docket # 79, ¶¶ 49-50). Furthermore, Plaintiffs allege that “El Amal Group’s abuse of its monopolistic power constitutes an unreasonable attempt to monopolize” and that “[t]he efforts of El Amal Group and FIVE constitute a combination of entrepreneurs to harass and deter their competitors from having ‘free and unlimited access’ to the agencies and courts, to defeat that right by massive, concerted, and purposeful activities of the group as' ways of building up El Amal Group’s empire and strangling competition by bringing baseless suits to evict plaintiff.” (Docket # 79, ¶¶ 52 & 57).

Subsequent to filing its action, on June 18, 2002, Co-plaintiff RPM requested a preliminary injunction (Docket #2). Co-plaintiff renewed its request on January 31, 2003 (Docket #27). RPM requested that the Court stay a local injunction proceeding instituted against it by Five Development. RPM’s preliminary injunctive request was denied on March 24, 2003. The Court found that Co-plaintiff RPM had failed to show irreparable harm (Docket #34). Thereafter, on April 3, 2003, the Court of First Instance of the Commonwealth of Puerto Rico in Carolina rendered a judgment of eviction against RPM. As a result, Co-plaintiff RPM relocated and opened for business on June 15, 2004 *129 (Docket # 91). The new location, Sán-chez-Osorio Ave., 5-BB-9 Villa Fontana Park, is 482.28 meters from the Villa Fon-tana Shopping Center (Docket # 109, SUF #21).

In reaching its judgment of eviction, the Court of First Instance expressly determined that: (1) the lease agreement between Five Development and RPM did not contain an automatic right to renew the lease; (2) Five Development, as the lessor, conserved its right to accept or reject RPM’s offer to renew the lease and/or terminate the lease upon the expiration of the contract; (3) RPM did not have the unilateral right to renew the contract without the consent of Five Development; (4) Five Development did not breach its obligations under the lease agreement nor rejected Plaintiffs offers to renew the lease in bad faith; and (5) RPM continued to illegally occupy the premises notwithstanding the expiration of the lease. The Court then ordered the eviction of RPM from the premises and ordered RPM to pay Five Development three times the monthly rent payment for the period RPM illegally occupied the leased space in the Villa Fonta-na Shopping Center ($46,200.00, plus a per diem of $140.00 until it vacated the premises), attorneys’ fees in the amount of $3,000.00, and an annual interest rate of 5.25% for obstinacy calculated from June 1, 2002 until RPM satisfied the judgment (Docket # 109, SUF # 35; Docket # 142, Exhibits # 12). RPM appealed and said appeal was dismissed for lack of jurisdiction (Docket # 171, Exhibit # 14). RPM then sought certiorari and the Court of Appeals denied RPM’s request. (Docket # 171, Exhibit # 13).

Standard of Review

Fed.R.Civ.P. 56(b) provides that: “A party against whom a claim ... is asserted ... may, at any time, move with or without supporting affidavits for a summary judgment in the party’s favor as to all or any part [of the claims asserted against him/her].” The Court may grant the mov-ant’s motion for summary judgment when “the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(c); See also Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202(1986); NASCO, Inc. v. Pub. Storage, Inc., 29 F.3d 28 (1st Cir.1994). “The principal judicial inquiry required by Rule 56 is whether a genuine issue of material fact exists.” 10A Charles Alan Wright, Arthur R. Miller & Mary Kay Kane, Federal Practice and Procedure: Civil 8d § 2725, p. 401.

In this regard, the First Circuit Court of Appeals has noted that for a dispute to be “genuine,” there must be sufficient evidence to permit a reasonable trier of fact to resolve the issue in favor of the non-moving party. U.S.

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Bluebook (online)
368 F. Supp. 2d 124, 2005 WL 1039150, Counsel Stack Legal Research, https://law.counselstack.com/opinion/recetas-por-menos-inc-v-five-development-corp-prd-2005.