Roselló Hnos. v. Figueroa

78 P.R. 250
CourtSupreme Court of Puerto Rico
DecidedMay 6, 1955
DocketNo. 11165
StatusPublished

This text of 78 P.R. 250 (Roselló Hnos. v. Figueroa) 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
Roselló Hnos. v. Figueroa, 78 P.R. 250 (prsupreme 1955).

Opinion

Mr. Justice Belaval

delivered the opinion of the Court.

This is ar action of unlawful detainer filed under the provisions of the Reasonable Rents Act of Puerto Rico, where the plaintiff alleges that it wishes in good faith to withdraw the leased property from the rental market in order to devote it to its own use. The defendants denied the good faith of the owner in taking such action, following the ruling established in our former decision on the question of law previously raised in the same case. Roselló Hnos. v. Figueroa, 74 P.R.R. 403 (Ortiz) (1953).

After a hearing on the facts, the trial court made the following findings:

“1. The plaintiff corporation is the owner of a property located on Isabel Street of the city of Ponce. There are four-commercial premises within this property.
“2. Roselló Hermanos acquired the property in 1951.
“3. When the plaintiff acquired the property the defendants occupied the premises which they occupy at present.
[252]*252“4. The plaintiff notified the defendants that the property would be withdrawn from the rental market because it was needed for its own use.
“5. The property consists of two different immovables marked numbers 72 and 74 of Isabel St.
“6. The former owner, Miguel Roselló, is the president of the corporation and was the president of the corporation at the time the property was purchased.
“7. The place occupied at present by Roselló Hermanos, Inc. is owned by Josefina Arce de Roselló, wife of Guillermo Roselló, one of the principal stockholders of the corporation.
“8. On January 20, 1953, the Board of Directors of the corporation authorized the manager by agreement to appear and commence these actions of unlawful detainer. At that time the unlawful detainer proceeding had already been filed.
“9. Before Miguel Roselló Manresa acquired this property, ;t belonged to Juan and Pedro Vestal and to Juan Labrador.
“10. One of the tenants, Alejandro Torres, was interested in the property, and Guillermo Roselló, stockholder of the corporation, who was the attorney in fact of the former owners,, offered it to him for sale and gave him a term of three days to decide whether or not he would buy. Torres did not answer the letter where said term was offered although according to Mr. Roselló they had always been willing to sell it.
“11. Miguel Roselló left for Spain and in 1948 purchased from the constituents of his brother the oft-mentioned property for the sum of $30,000.
“12. Miguel Roselló’s wife being incapacitated, they simulated an action on execution of a deed against her, which they abandoned and after the corresponding authorization was .given, the property was conveyed to the corporation for the price of $30,000 which was paid by the corporation as follows: shares were issued in favor of Miguel Roselló Manresa for the sum of $20,000 and a mortgage note was issued for the difference of $10,000.
“13. Roselló Hnos. Inc. has an outstanding stock of $81,000 of which Miguel Roselló Manresa has $51,000 in shares, thereby being the main stockholder and likewise controling the corporation.
[253]*253“14. From the time that Miguel Roselló Manresa bought said property in February 1948, he has had difficulty with the tenants because he believed that the rentals were too low and did not compensate for his investment in the property.
“15. Valentina Monforte de Bigas and José Norat Rodriguez were among the tenants occupying premises in said property. The O.P.A. had fixed a monthly rental of $84 on said premises and Mr. Roselló charged them $60.
“16. At the time that Miguel Roselló bought the property, the tenant Alejandro Torres Andrade was responsible for the rentals of the other tenants. Mr. Miguel Roselló asked him to-let him deal directly with, the other tenants, to which Mr. Torres Andrade consented.
“17. Immediately, Mr. Roselló requested an increase in the rental. Mr. Torres’ rental which was $52 per month was increased to $98 and after a reinvestigation of the case, the rent was reduced to $84. This tenant has been occupying that same place for 32 years.
“18. In connection with the other tenants the situation is similar to that of Mr. Torres.
“19. When Miguel Roselló bought said property it was his intention to live on the upper floor.
“20. Although Miguel Roselló alleges to have bought said property for the corporation, the transfer was not made until 1951.
“21. All the tenants have requested Miguel Roselló and the corporation to repair the physical plant of the property because the same is in very bad condition, which Mr. Roselló has refused to do.
“22. The plaintiff corporation has occupied the same premises since 1945 and the business of the corporation has had no fluctuation whatsoever between 1946 and 1950, as may be seen from the annual reports of the corporation, which reveal that no extraordinary substantial progress in the corporate business has taken place. For example, in the years 1946 and 1947 it appears from the report that the corporation had $59,000 in merchandise with assets of $66,000 and in 1950 assets of $58,000 and merchandise worth $43,000. The assets went down $8,000 and the merchandise $16,000.”

[254]*254In view of its findings of fact, the trial court concluded, .as a question of law, that the plaintiff had acted in bad faith .and based its conclusion on the following reasoning:

“Good faith is not a mere phrase, it is an additional requirement which the plaintiff is bound to prove in addition to the other previous requirements. Good faith being an essential element to be proved in an unlawful detainer action like the case at bar, it is necessary to investigate all the surrounding circumstances, and the question of good faith is a question of fact which must be inferred from the circumstances of each particular case.
“Plaintiff contends that Roselló Hnos. has nothing to do with the actions of Miguel Roselló and since the plaintiff never entered into a lease contract with the defendants and regarded .as terminated the one existing at the time when the property was purchased, the actions of Miguel Roselló play no part in determining the good or bad faith of the plaintiff corporation.
“Miguel Roselló, the former owner, not only is the president ■of the plaintiff corporation but also controls it and is its principal stockholder. Having the control of more than fifty per cent of the shares, the corporation is obviously an instrument of its president, Miguel Roselló. He is not only the first stockholder and president of Roselló Hermanos but he is also its mortgagee and the other stockholders of the corporation are members of his family.

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Bluebook (online)
78 P.R. 250, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rosello-hnos-v-figueroa-prsupreme-1955.