South Porto Rico Sugar Co. v. Puerto Rico Sugar Board

82 P.R. 814
CourtSupreme Court of Puerto Rico
DecidedJune 6, 1961
DocketNo. 34
StatusPublished

This text of 82 P.R. 814 (South Porto Rico Sugar Co. v. Puerto Rico Sugar Board) 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
South Porto Rico Sugar Co. v. Puerto Rico Sugar Board, 82 P.R. 814 (prsupreme 1961).

Opinion

Mr. Justice Serrano Geyls

delivered the opinion of the Court.

We have before us, once more, a controversy relating to the petitions for the shifting of the place for the grinding of cane in the sugar industry. In 1956, colono Santiago Sambolin Becchi signed a contract of agricultural financing and grinding of cane with the South Porto Rico Sugar Co. in which he promised to grind the cane from his thirty farms, for the years 1956 to 1960, both inclusive, in the Central Guánica, owned by the aforesaid corporation. In exchange, the latter promised to lend him annually, $3.00 for each ton of cane as quota for the planting and cultivation of certain farms, $2.50 for the remaining farms, and $3.00 per ton of cane as quota for cutting and hauling the cane produced in all the farms. Clause 17 of the contract provided the following:

“It is understood by the parties, that the Central has agreed to finance the Colono in the aforesaid manner considering the obligation contracted by the Colono of selling and delivering to the Central, the cane produced in the farms described in this deed during the entire term of this contract, and it must not be understood that the Colono is relieved from said obligation because he has paid or does not owe to the Central any agricultural advance payments.”

The contract was duly recorded in the Registry of Agricultural Contracts.

The parties signed, on that same date, a private contract in which “and as an additional consideration” to the colono’s aforesaid obligations, the petitioner agreed to pay a compensation of twenty cents for each ton of “nobles” canes delivered to the petitioner during the five grinding seasons.1 The petitioner lent to the colono the sum of $40,000 for the [817]*8171957 crop and paid him said year the aforesaid additional compensation.

In 1957 Sambolin leased his properties to Adriana L. Mercado for a period of twenty years with an option to an additional ten years and he informed her of the obligations contracted by him in the advance crop-loan contract. At the time of the lease, Sambolin was not indebted to the South Porto Rico Sugar Co. He had paid in cane, to date, his crop-loan debt.

That same year the new colono submitted a letter to the Sugar Board requesting that she be allowed to shift the grinding of the cane produced on the leased properties, from the Central Guánica to the Central Rufina, owned by Mario Mercado and Sons, S. en C. The South Porto Rico Sugar Co. objected to said petition .invoking the contract signed by Sambolin. After the usual proceedings and with the participation of all interested, the Board entered an order approving the change of the place for grinding for the following reasons: 1. the colono Sambolin was not indebted to the petitioner nor had the latter given him any advanced payment for the 1958 crop; 2. in this situation and pursuant to what was decided by the Board and by this Court in Central San Vicente, Inc. v. Sugar Board (Appeal for Review No. 12, Per Curiam decision of January 27, 1956) and in Mayagüez Sugar Co. v. Sugar Board, 79 P.R.R. 401 (1956), the obligation contracted by Sambolin of grinding his cane in the Central Guánica does not prevail; and. 3. Section 4 (7) of the Regulation of the Board (5 R. &, R.P.R.. § 391-4) does not preclude that the change be authorized.

After taking the proper steps for reconsideration, the South Porto Rico Sugar Co. filed the petition for review before this Court and we issued the corresponding writ. Subsequently, and with the consent of all the parties and the posting of bond by the petitioner to answer for all possible damages, we stayed the Board’s order.

[818]*818Before discussing in detail petitioner’s contention we should examine the applicable law and the interpretative decisions. Section 3 of the Sugar Act provides (Act No. 426 of May 13,1951, Sess. Laws, p. 1138; 5 L.P.R.A. §§ 371-405) :

“No sugar central shall refuse to grind the cane of a colono or of his successors or successors in interest, who may have been a colono of said central during any of the three (3) years prior to the date on which he may offer said cane to be ground, and the central shall give preference to said colonos for grinding- their cane over the new colonos; Provided, That in such ■.cases where a colono shall have been a colono for two or more ■centrals, the central shall be bound to grind the proportional ;part of the crop which said colono delivered to said central to be ground during the last year in which he was a colono •¿hereof.
Por a colono to be entitled to shift from the central where he grinds his canes to another central, he shall be under obligation to notify the centrals concerned of his intention to make said change not later than the first day of November prior to the grinding season in which he desires to make such change.
The central shall be bound to grind the cane of the new colonos, unless the Board exempts the central from such obligations after it is shown to the Board that the central lacks sufficient capacity to assume the grinding of the cane from such colonos. (5 L.P.R.A. § 372.)

And § 21 adds:

“In addition to the preceding powers expressly listed herein, the Board shall be authorized to prescribe such rules and regulations as may not be incompatible with the provisions of this Act for the proper execution hereof, and it shall be its duty to enforce, execute and carry out, through its orders, directives, regulations or otherwise, all the provisions of sections 371-405 of this title and of the full intent thereof, and shall be empowered to revoke or modify such orders, decisions ■or regulations”. (5 L.P.R.A. § 390.)

Construing the aforesaid § 3 we have decided that:

1. an order by the Board authorizing a shift of grinding is valid even when the colono has signed a grinding contract ■binding himself to grind his canes, “hereafter” in a mill [819]*819and the latter objected to the shifting — Central San Vicente, Inc. v. Sugar Board, 78 P.R.R. 760 (1955); 2. said order is equally valid if rendered prior to the expiration date of a simple grinding contract for a term of two years, and in which the only aid given by the mill to the colono is an advance for cutting and hauling for each ton of cane that the colono delivers to the mill, which contract, besides, is void because its provisions are repugnant to the Sugar Act —Mayagüez Sugar Co., Inc. v. Sugar Board, 78 P.R.R. 844 (1956); cf. Mayagüez Sugar Co., Inc. v. Sugar Board, 79 P.R.R. 401 (1956) ; and 3. said order is valid also when it is a crop-loan and grinding contract in which the parties expressly included “all the rules and provisions of the Act creating the Sugar Board” and, therefore, they recognized the colono’s right to shift from a central upon complying with the notification requirement—Central San Vicente, Inc. v. Sugar Board, Appeal for Review No. 12, Per Curiam decision of January 27,1956.

The petitioner herein alleges that: 1. this is the case of a crop-loan and grinding contract; 2.

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82 P.R. 814, Counsel Stack Legal Research, https://law.counselstack.com/opinion/south-porto-rico-sugar-co-v-puerto-rico-sugar-board-prsupreme-1961.