Veve v. Fajardo Sugar Growers' Ass'n

29 P.R. 609
CourtSupreme Court of Puerto Rico
DecidedJune 25, 1921
DocketNo. 2145
StatusPublished

This text of 29 P.R. 609 (Veve v. Fajardo Sugar Growers' Ass'n) 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
Veve v. Fajardo Sugar Growers' Ass'n, 29 P.R. 609 (prsupreme 1921).

Opinion

Me. Justice Hutchison

delivered the opinion of the court.

Appellants brought suit to establish the termination, resolution, extinguishment or rescission of a lease executed in favor of the Esperanza Central Sugar Company, a foreign corporation, the nullity and invalidity of certain subsequent transfers; and as the result of such proposed pronouncements for recovery of possession of the leased premises and for damages.

The court below, after a trial, dismissed the action, and error is assigned as follows:

“1. The court below erred in not considering that the action brought in this suit is mainly an action to the effect that the court find that the contract of lease is terminated or extinguished, or that it expired, or was rescinded, and that in consequence of said finding the action is one of ejectment.
“2. The court below erred in not finding that the contract of lease is terminated or extinguished and that in consequence thereof the action of ejectment lies.
“3. The court below erred in not finding that the contract of lease has expired and has not been renewed in any form, and therefore that the action of revendieation lies.
“4. The court below committed a manifest error in weighing the evidence in relation to the existence of forests on the leased property when the contract of lease was made and that they were subsequently destroyed by the original lessee and the defendant; and [611]*611in not finding that the contract of lease was rescinded, and in consequence thereof, sustaining the complaint.
‘' 5. The court below committed a ■ manifest error in not finding that the plaintiffs have suffered damages by the destruction of the forests, the said damages amounting to $7,000.
“6. The court below committed error because-after finding that the products of the property while in the possession of the defendant had been proved, after June 30, 1917, it did not adjudge the said defendant to pay the same, which amounted to forty-five thousand, one hundred and thirty-one dollars and forty-six cents.”

Tlie first assignment is based upon isolated extracts from the statement filed by the trial judge, 'which, if fairly construed in connection with the text, are hardly open to the interpretation so suggested. But, be this as it may, the fundamental questions raised by the pleadings and the evidence were decided adversely to plaintiffs and, unless the conclusions so reached be unsound, any obiter dictum contained in the reasoning of the court below, if erroneous, may be regarded as harmless.

The fifth and sixth averments of the complaint, the truth of which is admitted by the answer, are as follows:

“Fifth: That the lessee corporation, The Esperanza Central Sugar Co., became insolvent about the year 1909, in which condition it finally remained without ever having been rehabilitated, all of its property and rights having been liquidated and sold at public auction by the United States Marshal for Porto Rico, the said contract of lease also having been sold by deed No. 35 executed before the notary public of San Juan, Andrés B. Crosas, on July 12, 1909, the said contract of lease of the property Aurora having been adjudicated to the corporation Colonial Sugar Co., constituted under the laws of the State of New York and represented by its president, Edwin Packer.
“Sixth: That the corporation The Esperanza Central Sugar Co., already in a state of insolvency, was adjudged out of business in this Island by the Treasurer of Porto Rico from November 12, 1910.”

[612]*612From the findings of the court below we quote the following :

“The facts are substantially as follows:
“That the plaintiffs are of age and residents of Porto Rico, the defendant being a corporation constituted under the law, doing business in Porto Rico and registered in the office of the Executive Secretary of Porto Rico.
“The plaintiffs are the owners of the property Aurora set out in the complaint; that the property is and was partly composed of forests; that the court is not justified under the evidence presented to determine the exact area or extension.of such forest in 1906, nor at the present time, nor find that it was a forest of building timber; the said forest is now greatly diminished and nearly all cleared of trees and undergrowth.
“By deed of March 30, 1906, the plaintiffs leased to the corporation The Esperanza Central Sugar Co., then doing business in Porto Rico, the said property Aurora for a term of 11 years, from June 10, 1906; that it was agreed in the deed that the lessee reserved the right of renewing at will the contract of lease for five more years, the lessors also having agreed in the deed that the lessee was entitled to the use of the wood on the property. The rent stipulated was ($2,400) two thousand, four hundred dollars per annum during the first year and ($4,800) four thousand, eight hundred dollars per annum during the next ten years. Special stipulations were made as to the conditions and terms with regard to the cane ratoons, improvements, etc.
“It was not alleged nor proved that the rents for the lease had not been paid.”
“The corporation The Esperanza Sugar Co. became insolvent in 1909 and so it has continued, its property and rights having been sold at public auction by the United States Marshal for Porto Rico, the aforesaid contract of lease having been conveyed together with said property; that it was conveyed to the corporation Colonial Sugar Co. and the sale made by deed of July 12, 1909, which was admitted in evidence (stenographic record, p. 63) and recorded in the registry of property.
“That the Treasurer of Porto Rico on November 12, 1910, declared The Esperanza Sugar Co. as not doing any business in Porto Rico.
[613]*613“That on November 17, 1909, The Colonial Sugar Co., by a deed made before notary Thos. A. Gamón, assigned and conveyed to the trustees of The Fajardo Sugar Growers’ Association the contract of lease of the property Aurora. This deed was recorded in the registry of property, which fact has been admitted (stenographic record).
“The powers of the said trustees are those set out in the eighth count of the complaint and considered as reproduced in this opinion.
“The plaintiffs alleged that the lessees of Aurora did not use the property with the care of a good father of a family, having destroyed forests and deteriorated the property. The court finds that it does not appear from the evidence what kind of forest was on Aurora, nor the number of big trees there, nor that the forest contained any building timber, or that it was prepared for building, or that the defendant has destroyed any forest or deteriorated the property. It does appear that the defendant has cut off or destroyed undergrowth or shrubs of little value and cultivated some part of the mountain. The plaintiff, pursuant to its averment, claims damages that were not proved. The court finds that the evidence as to these matters was conflicting and the evidence of the defendant more strong and reasonable;

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Bluebook (online)
29 P.R. 609, Counsel Stack Legal Research, https://law.counselstack.com/opinion/veve-v-fajardo-sugar-growers-assn-prsupreme-1921.