Rivera Maldonado v. Central Pasto Viejo, Inc.

44 P.R. 504
CourtSupreme Court of Puerto Rico
DecidedFebruary 8, 1933
DocketNo. 5651
StatusPublished

This text of 44 P.R. 504 (Rivera Maldonado v. Central Pasto Viejo, 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
Rivera Maldonado v. Central Pasto Viejo, Inc., 44 P.R. 504 (prsupreme 1933).

Opinion

Mr. Justice Córdova Davila

delivered tlie opinion of the Court.

The plaintiff in this case, in a motion for substitution of the party defendant, asks that the action be continued against the corporation United Porto Rican Sugar Co., and against Messrs. Fernando Margarida and M. A. Walker, directors and officers of both the said corporation and the Central Pasto Viejo, Inc.

The plaintiff alleges that he filed his complaint against the defendant on March 7, 1927 ; that on March 21, 1929, the defendant filed its answer sworn to by Mr. Fernando Marga-rida who declared himself to be a vice president of the defendant corporation; that while this case was pending in this Court, the plaintiff filed with the secretary of this Court, a motion for substitution of attorney sworn to by Mr. Fernando Margarida who stated that he was a director of the defendant corporation Central Pasto Viejo; that after this Court had rendered judgment, the plaintiff-appellant ascertained, after proper investigation in the office of the Executive Secretary of Puerto Rico, that the defendant corporation had been dissolved on July 19, 1928, when Messrs. M. A. Walker and Fernando Margarida were its directors, respectively its president and vice president; that on August 23, 1928, a deed of sale of rights and interests in real property was executed before a notary, in Caguas, by the defendant Central Pasto Viejo in favor of the corporation United Porto Rican Sugar Co., the said Mr. M. A. Walker representing the Central Pasto Viejo as its president, and the said Mr. Fernando Margarida representing the United Porto Rican Sugar Co. as its vice president; that in said deed the Central Pasto Viejo sold, transferred, and assigned to the United Porto Rican Sugar Co., for the price of $2,238,269.60, all of its property, rights, and choses in action, the said corporation United Porto Rican Sugar Co. withholding the sum of $1,362,794.60 with which to pay all of the obligations incurred by the vendor corporation Central Pasto Viejo.

[506]*506Tbe United Porto Rican Sugar Co. lias appeared in opposition to this motion, alleging’ that this Court lacks jurisdiction to grant the relief sought, or any other that might affect said corporation -without giving the latter its day in court. The said corporation also alleges that there is no la-win force in Puerto Rico giving this Court jurisdiction to authorize the substitution of a person, not a party to the proceedings in the lower court, for a party defendant against whom this Court has already rendered judgment on appeal.

The plaintiff maintains that the requested substitution should he made in accordance with the provisions of section 69 of the Code of Civil Procedure. Said section reads as follows:

'‘An action or proceeding doe’s not abate by tbe death or disability of a party, or by the transfer of any interest therein, if the cause of action or proceedings survive or continue. In case of the death or any disability of a party, the court, on motion, may allow the action or proceeding to be continued by or against his representative or successor in interest. In case of any other transfer of interest, the action or proceeding* may be continued in the name of the original party, or the court may allow the person to whom the transfer is made to be substituted in the action or proceeding.”

The preceding section is identical with section 385 of the Code of Civil Procedure of California. In cases of transfer of interest it is usually the vendor who asks for the substitution. Those cases offer no difficulties because they are ordinarily'decided without opposition and with the consent of the parties to the action. In this case, in which this Court has already rendered judgment, and in which a motion for reconsideration is pending, the plaintiff requests the substitution of the party defendant.

The plaintiff alleges that the defendant corporation has been dissolved and has ceased to exist, and that this action should be continued against the representative or successor in interest of the defunct corporation. This case does not deal with a legal representative or successor in interest who [507]*507acquires the right to continue the action through the death or incapacity of a litigant. To decide the motion filed by the plaintiff we must rely upon the last part of section 69 previously cited, which refers to “any other transfer of interest. ’ ’

In the case of Portland Gold Min. Co. v. Stratton’s Independance, 196 Fed. 714, decided by the United States District Court for the District of Colorado, an action of trover was brought against a corporation to recover the value of certain ore owned by plaintiff and alleged to have been appropriated by defendant to its own use. While the litigation was still pending the defendant corporation was dissolved. The parties filed a stipulation as to the fact in that respect and alleged the formation of a new company with the same name as the dissolved corporation. From the stipulation it further appeared that “$375,000, paid into the treasury of the new company by those who were not shareholders in the old company, was turned over to the old company for the payment of its debts, and the new company, in consideration therefor, and in further consideration that it would protect the old company against its debts, liabilities and obligations and pay, satisfy and discharge the same, and adopt, perform and fulfill all contracts and engagements then binding it, received from said old company all of its properties, including lands, buildings, mines, concessions, goods, chattels, moneys, credits, debts, bills, notes, and things in action.” In view of said stipulation, the court ordered that the action abate as against the dissolved corporation, and that the new company be substituted as a party defendant in the action. Said new company filed a motion to vacate the order of substitution and the court granted this motion, interpreting section 15 of the Code of Colorado, which is identical with section 69 of our code, except that the latter includes actions and proceedings, whereas the Code of Colorado, in specifying the cases in which an action is not abated, does not employ the term “proceedings.”

[508]*508Said district court, in sustaining the motion and vacating the order of substitution, said:

“The other provision of the code to which reference is doubtless made in the above section, is section 15 of said code, which is as follows:
“ ‘An action shall not abate by the death or other disability of a party, or by the transfer of any interest therein, if the cause of action survive or continue. In case’ of the death or other disability of a party the court, on motion, may allow the action to be continued by or against his representative or successor in interest. In case of any other transfer of interest the action may be continued in the name of the original party, or the court may allow the’ person to whom transfer is made to be substituted in the action.’
“It is apparent from the language of this section that the’ revival can be made only in favor of or against those who acquire, either by operation of law or otherwise, an interest in the subject-matter of the action. The subject-matter of each of the causes of 'action here is the proceeds of value of the ore which came into the possession of and was retained by the old company on account of the several acts of alleged conversion and appropriation.

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Bluebook (online)
44 P.R. 504, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rivera-maldonado-v-central-pasto-viejo-inc-prsupreme-1933.