Succession of de Goenaga v. Succession of Gallardo

5 P.R. Fed. 10
CourtDistrict Court, D. Puerto Rico
DecidedJuly 6, 1909
DocketNos. 509 and 524
StatusPublished

This text of 5 P.R. Fed. 10 (Succession of de Goenaga v. Succession of Gallardo) 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
Succession of de Goenaga v. Succession of Gallardo, 5 P.R. Fed. 10 (prd 1909).

Opinion

Eodey, Judge,

delivered the following opinion:

The above two suits are bills in equity for tbe enforcement of so-called mortgages or “refacción” contracts or liens on identical land, which is situated near Loiza on this island. The issue is on a motion by complainants in suit No. 509, for leave to intervene in suit No. 524, and the issue in the latter suit is raised by a plea of laches, staleness of demand, and that the cause is barred by several statutes of limitation. In the argument on these issues, the cases were heard together, and, as the conclusion we have arrived at warrants it, we will consider and dispose of them together.

The bill in No. 509 was filed on October 22d, 1901, and in 524, about two and a half months later, on January 9, 1908. On December 3d, 1907, respondents in suit No. 509 filed a plea alleging the Porto Eican citizenship of all the parties, and hence claiming that the court was without jurisdiction. A reading of the whole bill would indicate that this fact is probably true, notwithstanding a contrary allegation in the stating part of it. It would also appear as though complainants knew the plea was in fact true, because, without joining issue thereon, their counsel, under date of April 7th, 1908, appears to have entirely abandoned the case, and on that day filed a motion asking leave for all the complainants therein to intervene as complainants in suit No. 524, and accompanied this motion with an exact copy of the bill of complaint that he had filed in suit No. 509.

In suit No. 524, under date of March 3, 1908, respondents pleaded gross laches, inexcusable delay, and several statutes of limitation, and, under date of April 11, 1908, after the petition for leave to intervene had been filed, they came in and opposed [12]*12tbe granting of suck leave, because, as alleged, tke parties tkus asking it were all Porto Ricans, as appeared from the facts set out by them as complainants in the bill in suit No. 509, and that, so being Porto Ricans, they could not intervene in suit No. 524, as all of the respondents in that suit were also Porto Ricans, and thus there would be Porto Ricans on both sides of the case, which would oust the jurisdiction, under our decision in the Vallecillo y IVIandry v. Bertrán Case, 2 Porto Rico, Fed. Rep. 46.

To this contention, counsel for the intending interveners replied that, the intervention not being an original suit, but ancillary and dependent, that is, supplementary merely to the original bill, it could be maintained without reference to the citizenship of the parties, under the ruling of the Supreme Court of the United States in Freeman v. Howe, 24 How. 450, 16 L. ed. 749, and Krippendorf v. Hyde, 110 U. S. 276, 28 L. ed. 145, 4 Sup. Ct. Rep. 27, and Killian v. Ebbinghaus, 110 H. S. 568, 28 L. ed. 246, 4 Sup. Ct. Rep. 232.

We have read both of the original bills, as well as the intervening petition, with care, and have also read the exhibits filed as a basis for the right of action in each of the cases. It appears that, as long ago as 1862 to 1865, that is, about forty-five or more years ago, there lived in the northeast corner of the island of Porto Rico, at or near the town of Loiza, a man named Ramon Ruiz Gandia, who was in possession of a considerable estate, called “San José Cacique,” and that the ancestors of both sets of complainants in these suits furnished him means to plant and gather his crops, particularly sugar cane to be manufactured at a mill he possessed. That José Rufino de Goenaga, the ancestor of complainants in suit No. 509, was the one that furnished [13]*13money to bim in 1862 and tbe following year, and William Noble, tbe ancestor of complainants in snit No. 524, furnished bim money in 1865.

It is alleged that be did not pay off these debts, although public instruments were drawn up in each case to secure them on tbe crops of these years. It is possible even that one of tbe instruments is so worded as that it might be held to be a mortgage upon tbe lands also, but this is not certain. These instruments were duly recorded in the old anotaduria of that period. However, Gandia, as it is alleged, remained owing Noble $8,093, and Goenaga $6,063.36. It is also alleged that some time thereafter, the year not being fixed save that it was in the sixties, this man Gandia became and was declared a bankrupt, and that, after the bankruptcy proceeding was settled, one Hicardo Gallardo, the ancestor of the respondents in both of these suits (who was Gandia’s partner in the plantation), acquired title to the same, but subject to the liens of Noble and Goenaga, as aforesaid.

It is further alleged that Gallardo, in the year 1882, obtained from the proper court an expediente posesorio to the whole of this plantation, but that, when the court granted it to him, it required him to recognize these liens as valid, and to agree to pay them.

It is further alleged that respondents in both of these present suits are the heirs of said Gallardo, and that they are still in possession of the property. It is also stated that a year later, in 1883, Gallardo executed a further notarial instrument, by which he recognized the validity of this indebtedness and the liens thereunder upon said plantation; but such exhibit was not filed with the bills.

[14]*14The record of these alleged liens, and presumably these alleged acknowledgments of them, was thus left in the old registry, and not transferred to the new registry until April, 1906, or but a short time before the filing of these suits, and the transfer was thus made probably only to give complainants the right to file the suits.

The effort here is to have these liens established judicially and the amount of each ascertained with interest and costs, and to obtain decrees against the Gallardo heirs and against the land in question therefor; and if the same are not paid, to cause said plantation to be sold, to satisfy the debts respectively. The debts, if valid, would now with interest amount to quite large sums, but the view we take of the matter renders it unnecessary to do any calculating in that regard.

The briefs on both sides are quite able, and are, no doubt, the result of a considerable search in the law as to laches generally and the different statutes of limitation known to Spanish law, both under the old and new Code. We do not, however, think it necessary to determine what particular statute of limitation applies, or whether it is the five-year, the ten-year, the twenty-year, or the thirty-year statute, if either, that has barred the claims, or whether the running of either one or more of these statutes has been interrupted by the so-called acknowledgment of the debts said to have been made in the years 1882 — 3.

After examining the instruments given in the first instance, in 1862, 1864, and 1865, we have grave doubts whether they could, in any event, be held to apply to anything save the crops.

It is our opinion that it would be hard to find a case showing such gross and apparently inexcusable laches in the collection of debts, or in the assertion of liens against property, as is exhibited [15]*15in these two cases. Both of the men, Noble and Goenaga, presumably lived in the community here for several years after these so-called refacción debts became due, and did nothing to collect them, or foreclose these so-called liens.

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Related

McKnight v. Taylor
42 U.S. 161 (Supreme Court, 1843)
Freeman v. Howe
65 U.S. 450 (Supreme Court, 1861)
Hume v. Beale's
84 U.S. 336 (Supreme Court, 1873)
Krippendorf v. Hyde
110 U.S. 276 (Supreme Court, 1884)
Patterson v. Hewitt
195 U.S. 309 (Supreme Court, 1904)

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Bluebook (online)
5 P.R. Fed. 10, Counsel Stack Legal Research, https://law.counselstack.com/opinion/succession-of-de-goenaga-v-succession-of-gallardo-prd-1909.