U.S. Industries, Inc. v. Laborde

794 F. Supp. 454, 1992 U.S. Dist. LEXIS 7777, 1992 WL 113727
CourtDistrict Court, D. Puerto Rico
DecidedMay 22, 1992
DocketCiv. 90-1422(JP)
StatusPublished
Cited by13 cases

This text of 794 F. Supp. 454 (U.S. Industries, Inc. v. Laborde) 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
U.S. Industries, Inc. v. Laborde, 794 F. Supp. 454, 1992 U.S. Dist. LEXIS 7777, 1992 WL 113727 (prd 1992).

Opinion

OPINION & ORDER

PIERAS, District Judge.

The Court has before it the Motion to Dismiss filed by defendants José Enrique Laborde, Salvador Arana, Patria Custodio, Néstor López Vázquez, Héctor Rivera Cruz, and the Puerto Rico Land Administration on May 10, Í990, and the Motion to Dismiss and/or for Summary Judgment filed by defendant Federación de Pesca-dores de Playa Picúa, Inc. on June 4, 1990. For the reasons set forth below, the motions to dismiss are GRANTED in part and DENIED in part.

I. Background

Plaintiff brought this action on March 22, 1990, by the filing of a verified complaint. The action arises out of the segregation and sale by plaintiff of property located in Rio Grande, Puerto Rico. In a prior action in the Superior Court of Puerto Rico, the segregation and sales were declared null and void. Plaintiff has asked this Court to declare the judgment in the Superior Court action void, to find that *456 various Puerto Rico officials have violated plaintiff’s civil rights by their conduct during and leading up to that action, and to allow the rights of the parties to be resolved by the Court through an interpleader action. The jurisdiction of the Court is predicated on 28 U.S.C. §§ 1331, 1332, 1335 and 1343.

Plaintiff U.S. Industries, Inc. (hereinafter “USI”) is a Delaware corporation with its principle place of business in New York. Defendants are the Secretary of the Puerto Rico Department of Natural Resources (José Enrique Laborde), the Director of the Puerto Rico Regulations and Permits Administration (“ARPE”) (Salvador Arana), the President of the Puerto Rico Planning Board (Patria Custodio), the Mayor of Rio Grande, Puerto Rico (Bianca Medina Uriguen), the Director of the Expropriation and Eminent Domain Division of the Puerto Rico Department of Justice (Néstor López Vázquez), and the Puerto Rico Secretary of Justice (Héctor Rivera Cruz), all sued in their official capacities, as well as the Puerto Rico Land Administration, the Municipality of Rio Grande, and the Federación de Pescadores de Playa Pi-cúa, Inc. (the “Federación”). The inter-pleader defendants are the individuals and entities which, according to the Property Registry, own the parcels of land that were sold by USI.

The facts material for purposes of defendants’ motions are not in dispute. As is required in the context of a motion to dismiss, the Court has relied primarily on the statement of the facts contained in plaintiff’s complaint, the allegations of which have been taken as true. Accord Warth v. Seldin, 422 U.S. 490, 501, 95 S.Ct. 2197, 2206, 45 L.Ed.2d 343 (1975); Jenkins v. McKeithen, 395 U.S. 411, 421-22, 89 S.Ct. 1843, 1848-49, 23 L.Ed.2d 404 (1969). In 1978, USI acquired at a judicial sale a block of beachfront property located in Rio Grande, less than an hour’s drive west of San Juan. USI apparently intended to use the property, which consists of 792.73 cuer- das 1 and is commonly known as Las Pi-cúas, to build a resort complex. In March 1980, however, the Puerto Rico Planning Board denied USI’s request to develop the property. Then, on February 5, 1982, pursuant to a flood map issued by the Puerto Rico Planning Board, the property was designated as a flood zone, which limited the uses and segregation of the property.

On April 29,1983; USI segregated 9.4715 cuerdas of Las Picúas and sold it to the Continental Tennis and Beach Resort Corporation (“Continental Tennis”). On July 5, 1983, USI segregated the remainder of the property for agricultural purposes and sold 30 parcels, each in excess of 25 cuer-das, to various individuals and entities. Each of the deeds for these sales stated that land was located in a flood zone and segregated for agricultural purposes. After these sales, several structures were built on the properties by the new owners. Many of these construction projects were carried out after use permits were issued by ARPE.

On September 12, 1984, the Federación filed a suit in the Superior Court of Puerto Rico requesting a declaratory judgment, a temporary restraining order, and preliminary and permanent injunctions against USI and some of the individual owners. 2 The Federación alleged that the land was not being used for agricultural purposes and that the owners were instead subdividing their parcels, removing soil, building structures, destroying vegetation, and denying public access to the beach. The Fed-eración requested injunctions and damages for the alleged denial of access. It asserted that the actions of the owners violated the regulations of Planning Board concerning the appropriate uses of property located in flood zones. The Planning Board itself initially declined to intervene in the suit.

*457 In 1985, pursuant to a Special Zoning Map for Rio Grande, Las Picúas was designated as a Natural Reserve Zone, which further limited the uses and segregation of the property. In early 1986, the Planning Board, the Municipality of Rio Grande, the Municipal Assembly of Rio Grande, the Department of Natural Resources, and ARPE all made motions to intervene in the Superi- or Court action, all of which were allowed. The Planning Board requested that the sales by USI be declared void, that title be returned to USI, and that USI be enjoined from segregating the property and building structures on it. In its answers to the complaints filed by the intervenors, USI set forth various defenses based on Puerto Rico laws and regulations. USI did not assert any defenses based on its rights under the United States Constitution or federal civil rights law. Instead, it stated that it was “reserving” those rights. These allegedly reserved rights are the basis of USI’s claims in this case.

On January 13, 1989, the Superior Court issued an Extraordinary Order for the management of the Federación case. The Order dictated that the case be tried only against USI and Manuel Rivera Torres, an individual who had purchased two of the segregated parcels. The case was tried under a series of Puerto Rico laws and regulations including (i) Article 3 of Planning Regulation 3, which provides that certain restrictions on the segregation of land do not apply if the parcel segregated is over 25 cuerdas, and (ii) §, 6.04 of Planning Regulation 13, which restricts the segregation of areas after they have been designated as flood zones. 3 The Government argued that the exemption of Article 3 of the Segregation Regulation did not apply to Las Picúas, since it was instead governed by the regulations relating to , natural reserves. USI argued that the exemption of Article 3 did apply since it was the only regulation specifically related to segrega-tions.

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Bluebook (online)
794 F. Supp. 454, 1992 U.S. Dist. LEXIS 7777, 1992 WL 113727, Counsel Stack Legal Research, https://law.counselstack.com/opinion/us-industries-inc-v-laborde-prd-1992.