Source: https://supreme.justia.com/cases/federal/us/306/505/
Timestamp: 2019-04-19 19:11:17+00:00

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Justia › US Law › US Case Law › US Supreme Court › Volume 306 › Bonet v. Yabucoa Sugar Co.
Bonet v. Yabucoa Sugar Co.
1. A suit against the Treasurer of Puerto Rico to enforce a tax refund cannot be maintained unless authorized by Puerto Rican law. Puerto Rico cannot be sued without its consent. P. 306 U. S. 506.
2. The legislature of Puerto Rico is not obliged to provide a judicial remedy for tax refunds. Id.
3. Under the laws of Puerto Rico, as construed by the Island courts, suit cannot be maintained against the territorial Treasurer to collect from him an amount voluntarily paid as an income tax which the Treasurer has declined to refund. P. 306 U. S. 507.
4. This Court follows the construction of the local tax laws adopted by the courts of Puerto Rico unless clearly erroneous. P. 306 U. S. 509.
Certiorari, post, p. 622, to review a judgment which reversed a decision of the Supreme Court of Puerto Rico denying the jurisdiction of the local courts over an action against the territorial Treasurer to recover money voluntarily paid as a tax. See 50 D.P.R. 962; 51 id. 135.
As conceded by respondent, this suit cannot be maintained unless authorized by a Porto Rican law, because Porto Rico cannot be sued without its consent. [Footnote 2] It is also conceded that the Porto Rican legislature is not obligated to provide a judicial remedy for tax refunds. [Footnote 3] Respondent's contentions here are that the governing statutes of the Island do authorize the present suit "either by express language or by necessary implication," and that the Porto Rican courts erroneously construed the local statutes.
and requires him to "report to The Legislature of Porto Rico at the beginning of each regular session . . . all transactions under this section."
The courts of Porto Rico construed § 75 to mean that the Treasurer's refusal to refund taxes not paid under protest is final; that the local statutes grant the courts no jurisdiction to review this refusal, and that, after the Treasurer's report to the legislature, a voluntary taxpayer's complaint must be addressed to the legislature. Disagreeing with this construction given the statute by the courts of Porto Rico, the Circuit Court of Appeals (one Judge dissenting) found that the 1925 Act plainly provided a resort to the courts, even in suits to recover taxes voluntarily paid without protest.
"until a claim for refund or credit has been duly filed with . . . the Board of Review and Equalization on appeal, according to the provisions of law in that regard, and the regulations established in pursuance thereof."
(Italics supplied.) Since a voluntary taxpayer is given no express right of appeal from the Treasurer to the Board by the "provisions of law in . . . regard" to such appeals, he is not expressly authorized to comply with the condition precedent to right of suit under § 76(b). Rights denied by the statutes could not be granted by regulations.
Taxing acts of Porto Rico are purely local, and the traditional reluctance of this Court to overturn constructions of such local statutes by local courts is particularly applicable to interpretations of Porto Rican statutes by Porto Rican tribunals. [Footnote 18] Orderly development of the government of Porto Rico as an integral part of our governmental system is well served by a careful and consistent adherence to the legislative and judicial policy of deferring to the local procedure and tribunals of the Island.
"The construction adopted in Porto Rico at least does no violence to the words of the statute; it concerns local affairs under a system with which the court of the Island is called on constantly to deal, and we are not prepared, as against the weight properly attributed to the local decision, to say that it is wrong. [Footnote 19]"
here, we cannot say the Porto Rican courts were wrong. In failing to uphold their construction of the local statutes, the Circuit Court of Appeals was in error.
The judgment of the Court of Appeals is reversed, and the complaint in the district court of Porto Rico must stand dismissed, as ordered by that court and affirmed by the Supreme Court of Porto Rico.
98 F.2d 398. The opinion of the Supreme Court of Porto Rico, and its opinion on rehearing, have as yet been reported only in Spanish. 50 D.P.R. 962, 51 D.P.R. 135.
See Porto Rico v. Rosaly, 227 U. S. 270, 227 U. S. 274; Puerto Rico v. Shell Co., 302 U. S. 253, 302 U. S. 262.
Cf. Dismuke v. United States, 297 U. S. 167, 297 U. S. 171-172.
Laws of Porto Rico 1925, No. 74, pp. 400, 536.
Laws, 1919, p. 612, 666.
"That the Treasurer be, and he is hereby, authorized to remit, reimburse or make restitution for any tax or duty erroneously or unlawfully imposed or collected, as well as of the amount of any fine collected by error or without legal authority therefor."
"That, when proper claim has been made to the Treasurer of Porto Rico for the return, reimbursement or remittal of any duties or taxes erroneously or illegally levied or collected, as well as for the amount of any fines collected by error or without legal authority, if he refuses without reason to grant such a claim, the aggrieved party may appeal to the courts of justice, following therefor the procedure authorized and the proceedings established by Section 63 of this Act."
Compania Agricola de Cayey, Ltd. v. Domenech, 47 D.P.R. 535 (Spanish Ed.), decided prior to the present case, is to the same effect.
Cf. United States v. McClure, 305 U. S. 472.
Act of April 12, 1900, c.191, 31 Stat. 77.
Act of March 2, 1917, c. 145, 39 Stat. 951.
See Garzot v. Rios de Rubio, 209 U. S. 283, 209 U. S. 302.
Nadal v. May, 233 U. S. 447, 233 U. S. 454.
Santa Fe Central Ry. Co. v. Friday, 232 U. S. 694, 232 U. S. 700.
Phoenix Ry. Co. v. Landis, 231 U. S. 578, 231 U. S. 579.
Villanueva v. Villanueva, 239 U. S. 293, 239 U. S. 299; Waialua Co. v. Christian, 305 U. S. 91, 305 U. S. 109; Inter-Island Co. v. Hawaii, 305 U. S. 306, 305 U. S. 311.
Diaz v. Gonzalez, 261 U. S. 102, 261 U. S. 105-106.
Cordova v. Folgueras Y Rijos, 227 U. S. 375, 227 U. S. 378-379.

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