Source: https://supreme.justia.com/cases/federal/us/230/139/case.html
Timestamp: 2017-02-24 04:05:47
Document Index: 549332228

Matched Legal Cases: ['§ 35', '§ 244', '§ 2', '§ 1860', '§ 1841', 'Art. 389', 'Art. 393', 'Art. 394']

Ochoa v. Hernandez y Morales (full text) :: 230 U.S. 139 (1969) :: Justia U.S. Supreme Court Center Log In
U.S. Supreme CourtOchoa v. Hernandez y Morales, 230 U.S. 139 (1913)Ochoa v. Hernandez y MoralesNo. 92Submitted December 17, 1912Decided Junc 16, 1913230 U.S. 139APPEAL FROM THE DISTRICT COURT OF THE UNITED STATES
At the time the appeal was taken, § 35 of the Act of April 12, 1900, known as the Foraker Act, 31 Stat. 77, 85, c. 191, was in force -- since superseded by § 244 of the Judicial Code of March 3, 1911, 26 Stat. 1087, 1157, c. 231 -- and subjected appeals from the District Court of the United States for Porto Rico to the regulations applicable to appeals from the supreme courts of the territories. These were controlled by Act of April 7, 1874, c. 80, § 2, Page 230 U. S. 144 18 Stat. 27, 28, by which it was provided that, instead of the evidence at large, a statement of the facts in the nature of a special verdict, with the rulings of the court on the admission or rejection of evidence when excepted to, should be made and certified by the court below and transmitted to this Court with the transcript of the proceedings and judgment or decree. Our jurisdiction therefore is confined to determining whether the facts found by the district court support its judgment, for no errors are assigned upon questions of evidence. Rosaly v. Graham, 227 U. S. 584, 227 U. S. 590, and cases cited.
In the year 1890, the title to the land in question did not appear of record in favor of any person, either in the books of the present or modern registry or in the books of the old registry, the ancient anotadurias or contadurias. In that year, Raimundo Morales, the maternal grandfather of the complainants, fraudulently representing himself to be the owner, appeared before the Municipal Court of Naranjito, an insular court, and by certain ex parte proceedings obtained from that court a decree declaring him to be entitled to the possession of the land, Page 230 U. S. 145 but without prejudice to third parties who might show a better right to such possession. The possessory title so obtained was duly recorded or inscribed in the proper registry of property, in the same year, and was the only title to the land that then appeared recorded or inscribed in the registry.
In the year 1901, there appearing in the registry no claim or right or title in the land on the part of any other person or persons, Morales, still fraudulently representing himself to be the true owner, mortgaged the land for value to the defendants, constituting the firm of J. Ochoa y Hermano, who truly and in good faith believed him (Morales) Page 230 U. S. 146 to be the owner of it, and were entirely ignorant of the rights of the complainants therein. The mortgage was duly recorded in the proper registry of property in the same year.
For an understanding of the questions presented, it should be premised that Congress declared war to exist between this country and Spain by an Act of April 25, 1898, 30 Stat. 364, c. 189; that Porto Rico, then a colony of Spain, was occupied by the military forces of the United States from and after July 25th; that a protocol was signed in Washington, August 12th, 30 Stat. 1742, under which hostilities between the two countries were Page 230 U. S. 147 suspended pending negotiation of a treaty for the establishment of peace, by the terms of which protocol (inter alia) Spain agreed to cede the Island of Porto Rico to the United States and to immediately evacuate it, and commissioners were appointed to meet at Paris and proceed to the negotiation and conclusion of the treaty; that, accordingly a treaty was signed at Paris under date December 10, 1898, ratifications being exchanged at Washington, April 11, 1899, 30 Stat. 1754, and, by its terms, Porto Rico was ceded to the United States, and (Article IX, p. 1759) "the civil rights and political status of the native inhabitants of the territories hereby ceded to the United States shall be determined by the Congress." The military occupation of Porto Rico was immediately followed by the establishment of a provisional government, as will be mentioned below, and this government continued in control of the affairs of the Island continuously until the ratification of the treaty, and thereafter until the enactment of the Foraker Act of April 12, 1900, entitled "An Act Temporarily to Provide Revenues and a Civil government for Porto Rico, and for Other Purposes" (31 Stat. 77, c. 191).
The statement of facts is silent upon the question of the possession of the property from the death of the father of the appellees, in the year 1887, until the appellants entered into possession under the deed given to them by Morales in the year 1903. Assuming (in favor of appellants) that Morales had possession from the time he procured the entry of a possessory title in his name, the effect of this, as between him and the true owners, was that uninterrupted possession for thirty years would ripen into a good title and confer immunity from action (former Civil Code, P. R., Articles 1959, 1963, New Civil Code, P. R., §§ 1860, 1864). He was not entitled to avail himself of article 1957, that declared a prescription by possession for ten years as to persons present, and for twenty Page 230 U. S. 148 years with regard to those absent, because this was confined to possession "with good faith and proper title," and Morales had neither within the meaning of those terms as employed in the Code (former Civil Code P. R., Arts.1940, 1941, 1950, 1952-1954; present Civil Code, §§ 1841, 1842, 1851, 1853-1855). The entry of a possessory title in his name was in effect a judicial certificate declaring him to be entitled to the possession, but without prejudice to third parties who might show a better right to it. It gave him no title as against them, but conferred a prima facie legitimacy upon his possession, being "provisional and presumptive evidence of ownership," and it fixed a date from which his possession should be treated as originating, and so the entry amounted (for present purposes) to no more than public notice that from that time his possession was adverse to the true owners. Soto v. Registrar of Property, 15 P.R. 597, 600; Morales v. Landrau, 15 P.R. 761, 772; Pares v. J. Reynes & Co., 2 P.R. 402, 428.
"instruments or contracts Page 230 U. S. 149 executed or covenanted by a person who, according to the registry, has a right thereto shall not be invalidated with regard to third persons after they have once been recorded, although later the right of a person executing them is annulled or determined by virtue of a prior deed not recorded, or for reasons which do not clearly appear from the registry. Only by virtue of a recorded instrument may another later instrument, also recorded, be invalidated to the prejudice of third persons [with exceptions not now material]. The provisions of this Article [34] may at no time be applied to the instrument recorded in accordance with the provisions of Article 390 unless the prescription has validated or secured the interest referred to therein."
Subsequent sections provide for the mortgaging of different interests in real property, and for various purposes, and declare the effect that shall be given to the mortgages, provide for the manner of keeping the registries, for making and correcting entries therein, and for proceedings for clearing the title of unrecorded mortgages and other charges and interests. Art. 389 prohibits the admission in the courts, etc., of unrecorded documents or instruments if presented for the purpose of enforcing, to the prejudice of third persons, interests which should have been recorded. Articles 390 to 395, inclusive, contain provisions under which owners who lack a recorded title of ownership are permitted to record their interests by previously proving their possession before the judge of first instance, or the proper municipal judge, with Page 230 U. S. 150 the consent of the Department of Public Prosecution and citation of the adjacent property owners, should they desire to record the absolute ownership of some estate, and with the citation of the owner or other participants in the ownership, should they desire to record some property right. Article 391 prescribes the form of the proceedings. Article 392 provides that the court, on approving the proceedings, shall "order that the record requested be made in the registry without prejudice to a third person having a better claim." Among the prerequisites for converting entries of possession into records of ownership under this procedure it was, by par. 6 of Art. 393, provided that twenty years must have elapsed since the date of entry of possession. By Art. 394,
"If the twenty years calculated from the date of the entry [of possession] have not elapsed, or the requisites mentioned in Article 393 of this law have not been complied with, the entries of possession shall have the legal effect embraced in the provisions contained in the following paragraphs, [viz.]. The period of possession which appears to have elapsed at the time said entries are made shall be computed for the prescription which does not require a just title, unless a person prejudiced thereby denies it, in which case said period of possession must be proven in accordance with the common law. Entries of possession shall prejudice or favor third persons from the date of their record, but only with regard to the effects which the laws attribute to mere possession. The entry of possession shall not prejudice the person who has a better right to the ownership of the realty, although his title has not been recorded, unless the prescription has confirmed and secured the claim recorded. Between the parties, the possession shall be effectual from the date prescribed by the common law. The provisions contained in the preceding articles, regarding the entries of possession, cannot be applied to mortgage rights, which cannot Page 230 U. S. 151 be recorded unless an instrument in writing is presented."
This is conceded by the appellants, who indeed base their argument upon it, contending further that, because of what has just been said, the rights of appellees in the land in question were not affected by the proceedings whereby Morales converted his possessory title into a title of ownership, and that the recording of this dominio title by him did not cut off any of their rights; that, if such title was fraudulent, it was liable to attack, even after registry, within any period short of thirty years after he has entered into possession of the land and while still recorded in his name, or in that of any other person Page 230 U. S. 152 excepting an innocent purchaser without notice, or, in the language of the civil law, "a third party with good faith." Paris v. People, 5 P.R. 29, 37; Gonzalez v. People, 10 P.R. 458, 462; Abella v. Antunano, 14 P.R. 485, 494; Merchant v. Lafuente, 5 P.R. 638, 644.
In short, the position of appellees is that, by the fraudulent conduct of Morales, plus the Mortgage Law, plus the judicial order, plus the dominio title in Morales founded thereon, and the recording thereof, plus the Page 230 U. S. 153 mortgage and deed to appellants, their property has been taken from them and given to appellants, without notice to them or an opportunity for a hearing, and that the proceedings in court for converting the possessory into a dominion title, while bearing the semblance of judicial proceedings, departed therefrom in the essentials. To this it is no answer to say that those proceedings in court did not, under the Mortgage Law, purport to be judicial proceedings at all, nor to say that they would have done no harm except for the subsequent conveyance by Morales to the appellants.
The court below held (5 P.R. 463) that, assuming General Henry possessed all the legislative power that is possessed by Congress under the Constitution, he was still necessarily subject (as Congress would be) to the Page 230 U. S. 154 "due process of law" clause of the Fifth Amendment. And since his judicial order, because of its retroactive clause, by its terms, covered the present case, where the real owners of the land were infants and unable to protect themselves, and where they still had, under the Mortgage Law as it stood, nearly twelve years in which to attain maturity and contest the possession and right of Morales, and since the order shortened the period of limitation to six years, which period in their case had already elapsed, the order at the same time containing no provision for saving existing rights or giving to them or to others in like situation any opportunity to assert their rights, it was the same in effect as taking their property without due process of law.
The Island was occupied by the forces of the United States under Major General Miles, Commanding United States Army, on July 25, 1898. He appears to have had no special instructions from the President respecting the government that should be established, but it was well understood that he and those under him were subject to the instructions communicated by President McKinley to the Secretary of War under date July 13th with reference to Cuba (10 Mess. & Pap. 214) and published by the War Department as General Orders No. 101, Page 230 U. S. 155 under date July 18, of which a copy is set forth in the margin. [Footnote 1] Page 230 U. S. 156
"The first effect of the military occupation of the enemy's territory is the severance of the former political relations of the inhabitants and the establishment Page 230 U. S. 157 of a new political power. Under this changed condition of things, the inhabitants, so long as they perform their duties, are entitled to security in their persons and property and in all their private rights and relations. . . . Though the powers of the military occupant are absolute and supreme, and immediately operate upon the political condition of the inhabitants, the municipal laws of the conquered territory, such as affect private rights of person and property and provide for the punishment of crime, are Page 230 U. S. 158 considered as continuing in force, so far as they are compatible with the new order of things, until they are suspended or superseded by the occupying belligerent, and in practice they are not usually abrogated, but are allowed to remain in force and to be administered by the ordinary tribunals, substantially as they were before the occupation. This enlightened practice is, so far as possible, to be adhered to on the present occasion. . . . Private property, whether belonging to individuals or corporations, is to be respected, and can be confiscated only for cause."
"The first effect of this occupation will be the immediate release from your former political relations, and, it is hoped, a cheerful acceptance of the government of the United States. The chief object of the American military forces will be to overthrow the armed authority of Spain, and to give to the people of your beautiful island the largest measure of liberty consistent with this military occupation. We have not come to make war upon the people, . . . but, on the contrary, to bring you protection, not only to yourselves but to your property, to promote your prosperity, and to bestow upon you the immunities and blessings of the liberal institutions of our government. It is not our purpose to interfere with any existing laws and customs that are wholesome and beneficial to your people, so long as they conform to the rules of military administration, of order and justice. This is not a war of devastation, but one to give to all within the control of its military and naval forces the advantages and blessings of enlightened civilization. "Page 230 U. S. 159
The status of Porto Rico during the military occupancy, and before the exchange of ratifications, was the same as that of the Philippines during the same period, and is dependent upon principles expounded in frequent decisions of this Court. Fleming v. Page, 9 How. 603, 50 U. S. 614-615; Cross v. Harrison, 16 How. 164, 57 U. S. 190; Dooley v. United States, 182 U. S. 222, 182 U. S. 230; McLeod v. United States, 229 U. S. 416.
From the exchange of ratifications until Congress Page 230 U. S. 160 acted by the passage of the Foraker Act, the provisional government continued as before the peace. Santiago v. Nogueras, 214 U. S. 260, 214 U. S. 265; Leitensdorfer v. Webb, 20 How. 176, 61 U. S. 178. And see Delima v. Bidwell, 182 U. S. 1, 182 U. S. 174, etc.
with provisos not now pertinent. We can find here no legislative purpose to validate any Page 230 U. S. 161 order of the military governor that was in excess of the authority conferred upon him by the President.
With reference to statutes of limitations, it is well settled that they may be modified by shortening the time Page 230 U. S. 162 prescribed, but only if this be done while the time is still running, and so that a reasonable time still remains for the commencement of an action before the bar takes effect. Terry v. Anderson, 95 U. S. 628, 95 U. S. 632; In re Brown, 135 U. S. 662, 135 U. S. 701, 135 U. S. 705; Wheeler v. Jackson, 137 U. S. 245, 137 U. S. 255; Turner v. New York, 168 U. S. 90, 168 U. S. 94; Wilson v. Iseminger, 185 U. S. 55, 185 U. S. 63. Many other cases might be cited. The question of what, under given circumstances, is to be deemed a reasonable time to be allowed for the bringing of an action when a change is made in a statute of limitations has sometimes given rise to discussion. In the present case, there is no such embarrassment, for here no time whatever was allowed with respect to the case of these appellees and all others against whose lawful ownership an unlawful possession had been held for more than six years but less than twenty years at the time of the making of the judicial order.
"a person who according to the registry has a right thereto Page 230 U. S. 163 [e.g., Morales] shall not be invalidated with regard to third persons [e.g., appellants] after they have once been recorded, although later the right of the person executing them [Morales] is annulled or determined . . . for reasons which do not clearly appear from the registry,"
In other words, when appellants took from Morales the mortgage and deed under which they now claim, they were charged with notice upon the record that his entry of possession was subject to the rights of others, and that, by the law as it formerly stood, those rights could not be cut off in less than twenty years. They were also charged with notice that his dominio title depended upon Page 230 U. S. 164 the validity of an order made by the military governor purporting to have a retroactive effect, and to cut off, without notice or hearing, the claims of the identical third parties whose rights were preserved by the entry of possession; for, at the time of the making of the judicial order, the six years had already run.
It is a familiar doctrine, universally recognized where laws are in force for the registry or recording of instruments of conveyance, that every purchaser takes his title subject to any defects and infirmities that may be ascertained by reference to his chain of title as spread forth upon the public records. Brush v. Ware, 15 Pet. 93, 40 U. S. 111; Simmons Creek Coal Co. v. Doran, 142 U. S. 417, 142 U. S. 437; Northwestern Bank v. Freeman, 171 U. S. 620, 171 U. S. 629; Mitchell v. D'Olier, 68 N.J.L. 375, 384.
Nor is there any real hardship in applying this rule, for the limitations under which the military governor exercised his temporary authority in Porto Rico must be deemed to have been notorious everywhere, since they Page 230 U. S. 165 were proclaimed at the outset by General Miles, repeatedly reiterated during the military regime, and indeed were such as arise from general rules of international law, and from fundamental principles known wherever the American flag flies.
"[Corrected copy. -- Pleas destroy all others.]" "GENERAL ORDERS WAR DEPARTMENT"