Case Name: Santana v. Ramírez
Court: Supreme Court of Puerto Rico
Jurisdiction: Puerto Rico
Decision Date: 1903-11-18
Citations: 4 P.R. 377
Docket Number: No. 22
Parties: Santana v. Ramírez.
Judges: Chief Justice Quiñones and Justices Hernández and Mac-Leary concurred.
Reporter: Puerto Rico Reports
Volume: 4
Pages: 377–389

Head Matter:
Santana v. Ramírez.
Appeal from the District Court of San Juan.
No. 22.
Decided November 18, 1903.
Agency. — The owner of property, or a business, who avails himself of the advantages of the agency of another, shall be liable for the obligations contracted for his benefit, and shall indemnify the agent for the necessary expenses which he may have incurred and for the losses which he may have suffered in the discharge of his duties.
Judgments. — Should the judgment order the payment of an unliquidated amount, the amount thereof shall be considered and determined in the proper procceeding for the execution of the judgment according to the rules prescribed by the Law of Civil Procedure.
STATEMENT OE THE CASE.
This appeal pending before us was taken by Sergio Ramirez, who entered an appearance in this Supreme Court, through his counsel, Jacinto Texidor, praying for the reversal of a judgment rendered by the District Court of San Juan, which literally reads as follows:
“Judgment. In the City of San Juan, February 15, 1903. The hearing has been had in this declaratory action prosecuted by Gerardo Santana y Santana, a resident of Caguas, represented by his counsel, Antonio Alvarez RTava, against Sergio Ramírez, a merchant and resident of this city, repros- ented by Jacinto Texidor y Alcalá del Olmo, Esq., for the delivery of documents or a certain sum of money.
“A certified copy of the record of the proeeedings to avoid litigation was attached to the complaint by Gerardo Santana y Santana, who as assignee of Miguel Quinones Cabezudo, prosecuted a declaratory action in the District Court of San Juan, praying that judgment be rendered ordering Serbio Ramirez to deliver to plaintiff the documents showing the payment of import duties on two shipments of sugar mentioned in the complaint, or to pay him three thousand six hundred and ninety-four dollars and twenty-two cents, the amount of aforesaid duties, with costs of the proceedings.
“The facts upon which the complaint is based are as follows:
“In March, 1899, Nicolás Quiñones Cabezudo forwarded to Ramirez two hundred bags of sugar to be sold on commission, which lot of sugar was shipped by the latter to New York per S. S. ‘Caracas’, for account and risk of Quiñones, on the 29th of said month. In May or June another lot of seven hundred bags of sugar was in the same manner shipped by Ramirez, per S. S. ‘Catania’, to the same port. Ramirez produced the account-sales of said sugar to his consignor, and in the charges paid are included two items of eight hundred thirty-seven dollars and fifty-five cents and two thousand eight hundred fifty-six dollars and sixty-seven cents for import duties at the New York Custom House, on both lots of sugar. Quiñones and Santana made unsuccessful efforts to get Ramirez to deliver the receipts for the duties paid on the sugar, or reimburse whatever amount of said duties had been ordered to be returned by the Government, he giving evasive- answers, and finally offering one half of the amount refunded, which offer was refused, the owner of the sugar stating that while ready to pay a commission for the collection of the amount he was not disposed to give up fifty per cent, of the duties. Neither Quiñones nor Santana had authorized Ramirez to act for them in the matter, and in appointing an agent for the purpose in the United States, it was without the authorization, either express or implied, of the only person entitled to said duties, namely, Quinones. The latter, by a public document executed in Caguas, June 21, 1902, before a notary public of Hato-Grande, assigned to Gerardo Santana, for two thousand five hundred dollars, all his rights and actions in the aforesaid negotiations and proceedings against Ramirez. The proceedings to avoid litigation were had without coming to any agreement. Article 1886 and 1890 of the Civil Code were cited as the law applicable to the case.
“In his answer defendant prayed that his demurrer alleging want of capacity on the part of the plaintiff be sustained, and that the latter’s claim be dismissed, and that Quiñones Cabezudo be adjudged to receive on account of the duties on seven hundred bags of sugar paid and returned in New York, the balance left after deducting lawyer’s fees and such other expenses as were incurred in securing the refund of said duties, with costs, and alleging the following facts: that the aforesaid sugar was shipped per steamers ‘Caracas’ and ‘Catania’, to New York, it being agreed that Ramirez was ito advance seventy-five per cent, of the value of the invoice, which would be paid in cheeks on De Ford & Co., the balance to be settled upon receipt of the account-sales from New York. The sugars were consigned to Henry Beste of New' York, and the duties paid under protest, Ramirez notifying Quiñones, in a letter dated July 28, 1899, and his brother Ramón, verbally, as to the steps taken by Beste to secure the return of the duties paid by Beste before the decision was rendered by the Supreme Court at' Washington, and Beste afterwards secured the return of some two thousand dollars, more or less; that the refund of the duties paid on the two hundred bags of sugar was not secured because they had been paid on April 4, 1899, while the decision covered only arrivals in the United States from April 11 v'hen the Treaty of Paris vras ratified, to May 1, 1900, when the Forakcr Act took effect. Beste forwarded to Ramirez the liquidation of the duties collected, and upon receipt thereof the latter advised Quiñones Cabezudo, so that he might accept delivery of the portion belonging to him; this being contrary to the opinion of Porto Rican lawyers and of New York merchants, because the sugar belonged to Ramirez since he had paid seventy-five per cent, of its value in cash and engaged to pay the balance on time. Quinones refused to accept the sum of twelve hundred dollars of the liquidation made by Beste, and would not recognize the validity of lawyer’s fees and other expenses incurred in Newr York to obtain the reimbursement, although he was aware through Beste himself, of the steps that were being taken in New York, and had not disapproved them, lie giving as a reason for not recognizing or accepting said expenses, that the duties could have been recovered at a cost of only three or four per cent, say some sixty or eighty dollars; that Ramirez, had received the accompanying letter in which Beste stated that the Government of the United States had no power to make the reimbursement of its own free will, this being the result of difficult and expensive judicial proceedings; that the importer was the one who should present the claim and enter the protest in due time; and that the firm of Sergio Ramirez had ceased in its operations, being succeeded by De Solá & Ramirez, who were in charge of the liquidation of the former; the law cited being articles 227 et seq. of the Code of Commerce, 1888 to 1890 and 1893 of the Civil Code, 532 of the Law of Civil Procedure, and alleging the lack of a cause of action.
“The case being open for the introduction of evidence, plaintiff presented the deed of assignment by Quiñones to Santana, executed June 21, 1902,. mentioned in the second finding of fact; a circular dated October 18, 1902,. announcing the dissolution of the firm of De Solá & Ramirez, and that Sergio^ Ramirez had taken charge of the liquidation thereof; a letter from De Solá & Ramirez to Quiñones Cabezudo, dated March 13, 1902, in which the latter is informed that his letter of the 12th had been referred to Ramirez who stated that on the 27th of November he had received a letter from his agents reporting the result of the steps taken in the matter that had been entrusted to them, and that he (Ramirez) had communicated the same to Quiñones’ brother at the bottom of a letter, and afterwards on several occasions verbally, and that he was surprised at Quiñones’ failure to call on him at his office; letters of March 28, April 2, May 16, July 31, 1899, and, March 17, 1902, referring to the shipment of the 200 bags of sugar per S. S. ‘Caracas’, and cartage and shipping charges incurred, which shipment was consigned to Henry Beste, New York, the insurance being covered by an open policy, while the shipping charges referred to amounted, as per itemized statement, to thirty-eight dollars and twenty-five cents; and as to the storage of the 574 bags, the same price would be charged! as before, he (Quiñones) being authorized to draw on Ramirez for one thousand and five hundred pesos, Porto Rico currency, this being about equal to three-fourths' of the invoice value. In one of the letters he is advised of the receipt of the account-sales of the 200 bags, which account is forwarded to him, and of the shipment per ‘Catania’ of the 700 bags, as ordered by him; that of the 200 bags there remains in favor of Quiñones a balance of two hundred and ninety-nine pesos, and sixty-two centavos provincial money, and on account of the shipment of 700 bags he may draw up to three thousand three hundred and seventy-five dollars U. S. Cey., the expenses incurred amounting, as per detailed statement, to one hundred and thirty-four dollars, twenty-five cents; and account-sales of two lots of sugar signed in New York by Henry Beste.
“In addition to the evidence introduced by the plaintiff there appeared an acknowlegment by the defendant of the circular, letters and accounts produced by Ramirez, the latter’s acknowledgment of the receipt of the two lots of sugar to be sold in the market, which they agreed to ship to the United States, Ramirez advancing seventy-five per cent of the value thereof, which gave him an interest in the shipments, he considering himself as an owner by reason of the said advance, although he could not state the price agreed upon; that he had not received instructions to demand the refund of the Custom House duties,' but advised Quiñones that he was acting through Beste, and kept him posted as to all the particulars, and had written him to call at his office for his share in the claim; that he had made no agreement with Beste as to the amount to be paid for presentation and collection of the ■claim, and had received the account for disbursements, without vouchers.
“The defendant introduced in evidence three letters from Quiñones Cabe-zudo to Sergio Ramirez in which the latter is informed that the former does -not object to the sale of some bags for local consumption, but if seventy-five per cent, can be advanced on the sugar shipped, he was willing to make a trial shipment of 200 bags; he is requested to send him the account-sales of the 700 bags, if the same has been received, and supposes that he knows the manner in which the reimbursement of the duties on said sugars was tnade, informing him at the same time that Henry Beste would not give him more than one hundred and fifty dollars, which sum he had entered to the credit of his account; another letter from Henry Beste, of New York, dated August 16, 1902, which together with those dated respectively August 8 and October 5, 1899, were forwarded to New York, being recognized by Beste who replied that he had received a consignment of 700 bags of sugar from Sergio Ramirez, in June, 1899, upon which he had paid Custom House duties under protest, claiming that the same were unduly collected; that he had instituted a claim against the Government for the return of said duties and had retained a lawyer whose fees he had to pay.
“It further appears from the defendant’s evidence that Nicolás Quiñones Cabezudo recognized the three letters mentioned in the foregoing findings of’ fact, and declared that Ramirez had been his agent, to whom he consigned sugar to be stored and sold when prices were acceptable; that he commissioned him to get De Ford to advance seventy-five per cent, of the value of said sugar; that he had sent him the aforesaid two lots to be shipped to the United States and sold there; that he had talked with Beste in New York, and had instructed him when called upon to pay the duties, to do so under protest, to which he replied that he had already done so. The testimony showed that the expenses incurred for securing the return of the Custom House duties, to which the suit refers, had been fifty per cent, in 79 claims; ■and that after the decision of the Supreme Court, at a stipulated percentage, the claimants giving for the purpose their power of attorney,'some of them, however, claiming that having signed the manifest they were responsible Custom House agents, and as such had presented their claims; that the consignee had paid fifty per cent, to the lawyers, retained for himself ten per cent, and delivered to his principal forty per cent.
“The evidence having been introduced, and counsel for defendant having at the outset of the hearing withdrawn his dilatory pleading, the parties made such arguments as they deemed proper. Presiding Judge Juan Mo-rera Martinez prepared the opinion of the court.
“ The plaintiff at the beginning of the hearing having withdrawn his plea of want of capacity, there is no necessity to consider the same in this judgment.
“ It appears that Nicolás Quiñones Cabezudo, of whom the plaintiff Santana is assignee, entered into a contract of business commission with Sergio Ramirez, as appears from the facts set out by the parties in the complaint, and the answers thereto, and that the demand for the return of the duties paid on certain sugars in New York arises from said contract.
“ Whether arising from said contract or from business transactions which is the manner in which the question has been dealt with or presented, Ramirez is entitled to reimbursement of the expenses incurred, according to the Code of Commerce and'article 1893 of the Civil Code, applicable to the case, considering the manner in which the question has been presented.
“In view of the result of the hearing and the allegations of the parties, the only thing to be done is to declare the existence of the debt and that in payment thereof plaintiff is bound to allow such necessary expenses as were incurred in securing the refund of the duties; and this cannot be determined by the court in this decision, the amount not having been liquidated, until the necessary expenses, mentioned in article 1893, shall have been ascertained.
“ Said sum being uncertain, the amount of these expenses should be considered and determined in the proceedings for the execution of the judgment, under the provisions of articles 931 et seq. of the Law of Civil Procedure.
“All of the prayers of the plaintiff and of the defendant not having been granted, no special imposition of costs should be made.
“We adjudge that we should declare and do declare that Sergio Ramirez should deliver to plaintiff the vouchers relating to the payment of Custom House duties on the shipments of sugar mentioned in the complaint, or pay him the net balance after deducting the necessary expenses incurred for the recovery of said sum, which expenses shall be determined upon the execution of this judgment, in the manner prescribed by articles 931 el seq. of the Law of Civil Procedure, without special imposition of costs.
“Thus by this our judgment finally adjudging, we pronounce, command and sign. — Juan Morera Martinez. — Frank H. Richmond. — Angel Garcia.
“Publication: The foregoing judgment was read and published by Presiding Judge Juan Morera Martinez and the other judges of the court whose signatures are attached hereto, at a session of the court held this 14th day of February, 1903. Certified to by me — Evaristo Velez.”
Notice of this judgment having been served upon said Sergio Ramirez, he took an appeal -which was allowed, and after citation of the parties, the record was sent up to this Supreme Court, where the appellant made his appearance in due time, the'record being, delivered to him for his examination and information as also to counsel for the respondent, who contested the appeal.
A day was set for the I hearing, which was had on 5th instant, both parties making such-allegations in support of their respective rights as they deemed proper.
Mr. Texidor', for appellant.
Mr. Alvarez Nava, for respondent.

Opinion:
Mr. Justice Sulzbacher,
after making the above statement of facts, delivered the opinion of the court as follows:
The findings of fact and conclusions of law contained in the judgment appealed from are accepted.
In view of the legal provisions cited therein we adjudge that we should declare and do declare that Sergio Ramirez should pay the plaintiff the net balance resulting from the amount of import duties recovered on the sugars in question, after deducting the necessary expenses incurred for the collection thereof, said expenses to be determined in executing the judgment, in the manner prescribed by the Law of Civil Procedure, in which sense we affirm the judgment appealed from, with costs against the appellant.
Chief Justice Quiñones and Justices Hernández and Mac-Leary concurred.
Mr. Justice Pigueras did not sit at the hearing of this case.