Stella Rodríguez v. Municipality of Guayanilla

76 P.R. 733
CourtSupreme Court of Puerto Rico
DecidedJune 30, 1954
DocketNo. 10914
StatusPublished

This text of 76 P.R. 733 (Stella Rodríguez v. Municipality of Guayanilla) 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
Stella Rodríguez v. Municipality of Guayanilla, 76 P.R. 733 (prsupreme 1954).

Opinion

Mr. Justice Marrero

delivered the opinion of the Court.

This' litigation arose as the result of the facts which follow: Sometime in 1933 Jesús Stella Rodriguez, who was engaged in the planting and cultivation of sugar-cane, applied to the Public Service Commission for authorization to construct a spur track between kilometers 256 and 257 along the main line of the American Railroad Co. of Puerto Rico. The municipality of Guayanilla 1 objected, but on December 19 of that year the Commission, over its objection, entered an order granting the desired authorization. The municipality appealed on January 15,1934 and, in order to stay the effects of that order, the same day moved the former District Court of San Juan to so decree. See •§§ 78, 79 and 80 of Act No. 70 of December 6, 1917 (Sess. Laws, vol. II, pp. 432, 526). The court granted the motion by order of the 15th of that month and year, directing the railroad company and Stella Rodriguez to appear before the court on the following 25th day, at two o’clock, to show cause why the supersedeas order sought should not be granted. It further ordered that, while the decision of the petition in question was pending, the American Railroad Co. abstain from enforcing the order of the Commission and ordered the petitioner to give “a $2,000 bond to answer for any damages that may be caused to the prejudiced party.” That bond was given on January 15, 1934 by the municipality, as principal, and the Great American Indemnity Co., as surety.

[737]*737On March 9, 1934 the court issued an interlocutory order in which, after referring to the hearing held on January 25 of that year, decreed and ordered that, pending the resolution and decision of the appeal, the municipality “shall give a bond in favor of The People of Puerto Rico for the sum of $2,000, for the benefit of the party injured by this order and to answer for any resulting damages, and granting a period of five days, counted from notice of such order, to do so.” The second bond thus fixed was given on March 14, 1934 by the municipality, as principal, and Pedro Rodríguez, Jr. and Pedro Rodríguez Diaz, as sureties.

On May 29,1935 the court entered another order in which, after referring to the interlocutory order of March 9 of the previous year, to which reference is made in the preceding paragraph, stated that Stella Rodriguez had requested by motion of April 9 that the bond be increased up to a minimum amount of $5,000, and that, after a hearing at which only the petitioner was present, notwithstanding the fact that the other parties had been given notice thereof, the court was altogether satisfied that the bond originally given pursuant to the interlocutory order was insufficient. Thereupon, the court ordered that the bond be increased up to the sum of $5,000 and, inasmuch as a $2,000 bond had already been given in compliance with such order, that “an additional bond for the sum of $3,000, retroactive to March 9, 1934, under the same conditions as the $2,000 already given,” be furnished, and granted a period of five days to do so. This new bond, designated as the third in this action, was given on June 14, 1935 by the municipality, as principal, and the Great American Indemnity Co., as surety, one of the clauses of which specifies that it shall have retroactive effect to March 9, 1934.

By judgment of February 16, 1937, the former District Court of San Juan dismissed the appeal taken by the municipality. Thereupon the municipality appealed to the Supreme Court of Puerto Rico and, by judgment of May 31, 1938, we affirmed the judgment appealed from. See Municipality v. [738]*738Public Service Comm., 53 P.R.R. 263. It is well to mention at this point that while the appeal taken from the judgment of the district court was being perfected, and while the same was pending decision before this Court, no additional bond of any kind whatever was given.

On June 25, 1938 the municipality appealed from our judgment to the United States Court of Appeals for the First Circuit, and, in order to avoid enforcement of the judgment appealed from, moved this Court to fix a supersedeas bond and for costs. On the 12th of the following July we fixed the former at $10,000 and the latter at $300. These bonds were given sixteen days later by the municipality, as principal, and the Great American Indemnity Co., as surety, and approved by us the following day. By a per curiam decision of December 13, 1940, the Court of Appeals for the First Circuit affirmed our judgment. Municipality of Guayanilla v. Public Service Com’n., 116 F.2d 15. And on June 2, 1941 the Supreme Court of the United States denied a petition for certiorari filed in the case. Municipality of Guayanilla v. Public Service Com’n. of Puerto Rico, 313 U. S. 587.

In view of this state of affairs, Jesús Stella Rodriguez filed on August 8, 1941, in the former District Court of the Judicial District of Ponce, the action for damages herein involved. It is there alleged that, in view of the fact that he was not permitted to construct the spur on the date the authorization was granted by the Public Service Commission, plaintiff was compelled to incur greater expenses in the transportation of his cane, claiming the sum of $22,000 for damages, plus costs and attorney’s fees.

Defendants Rodríguez Díaz and Rodriguez, Jr., answered denying the essential facts of the complaint, alleging as special defenses prescription of the action and, by virtue of the subsequent bond given by the Great American Indemnity Co., the extinguishment of their obligation by merger. The municipality denied the facts alleged in the complaint. As special defenses, it alleged that the Mayor of Guayanilla had [739]*739no authorization from the assembly to oppose, on the municipality’s behalf, Stella Rodriguez’ petition, that if judgment adverse to the municipality were rendered, it would be illusory since there was no appropriation in the budget, and that the action had prescribed. The Great American Indemnity Co. denied the facts alleged, raised certain special defenses, and further filed a cross-claim against the municipality, alleging that the latter had promised to reimburse any loss, damage, and expense which it might incur or be liable for under the bonds given. It prayed in its cross-claim that any judgment that might be rendered should determine the respective liabilities and rights under the bonds between the municipality, as principal, and the Great American Indemnity Co., as surety, and further, that if it be ordered to pay a specific amount to plaintiff, the municipality likewise be ordered to pay to it the equivalent sum, plus $2,000 for attorney’s fees incurred in the defense of the action, as well as the total expenses which might be incurred in the investigation and defense of this action.2

During the trial the parties offered exhaustive oral and documentary evidence' On December 29, 1952, the Superior Court of Puerto Rico, Ponce Part, successor of the District Court of Puerto Rico and the latter of the former District Court for the Judicial District of Ponce, rendered judgment sustaining the complaint and ordering the defendants, the Municipality of Guayanilla, the Great American Indemnity Co. of New York, Pedro Rodríguez Diaz, and Pedro Rodriguez, Jr., to pay jointly to plaintiffs

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Bluebook (online)
76 P.R. 733, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stella-rodriguez-v-municipality-of-guayanilla-prsupreme-1954.