Case Name: The Municipal Council of Coamo v. The People of Porto Rico
Court: Supreme Court of Puerto Rico
Jurisdiction: Puerto Rico
Decision Date: 1903-06-08
Citations: 4 P.R. 3
Docket Number: No. 6
Parties: The Municipal Council of Coamo v. The People of Porto Rico.
Judges: Chief Justice Quinones, and Justices Hernández, Figue-ras and MacLeary, concurred.
Reporter: Puerto Rico Reports
Volume: 4
Pages: 3–9

Head Matter:
The Municipal Council of Coamo v. The People of Porto Rico.
Appeal from the District Court of San Juan.
No. 6.
Decided June 8, 1903.
Diputación Provincial. — Obligations not Enforceable. — An action of a temporary nature taken by the provincial committee of the former Dipu-tación Provincial granting a subsidy to a municipal corporation for the purpose of carrying out a municipal work and not finally passed upon by the Diputación does not create an obligation enforceable at law.
STATEMENT OF THE CASE.
In the “litigative-administrative” case pending before us on appeal, between the Municipal Council of Coamo, represented by José de Guzmán Benitez, Esq., and the People of Porto Rico, represented by the Fiscal, for the reversal of a judgment rendered by the District Court of San Juan, which literally reads:
“In the City of San Juan, Porto Rico, December 22, 1902. A hearing has been had in this “litigative-administrative” proceeding prosecuted by the Municipal Council of Coamo as plantiff, represented by José de Guzmán Benitez, Escp, against the administration as defendant, represented by the Fiscal, in the matter of a claim made by said Municipal Council against a decision of the liquidating commission of the Diputación Provincial refusing to pay a subsidy of six thousand pesos provincial money.”
“According to a letter dated May 8, 1900, the Alcalde of Coamo presented to the Chairman of the Claims Commission of the former Diputación Provincial of Porto Rico, copies of the documents showing the appropriation of six thousand provincial pesos, made by said Diputación, on January 3, 1898, in favor of the Municipal Council for the reconstruction of the town-hall, which appropriation had been, it was stated, recognized by the late office of the Secretary of the Treasury, on April 25, 1899. Aforesaid copies were: 1. A communication from the Civil Administration of the Island, stating that the Provincial Commission and Associates had decided to grant the request of the Municipal Council and had accordingly allowed the same six thousand pesos for the reconstruction of the town hall which had been destroyed by the fire of March 27, 1897; 2. Resolution of the Municipal Council of Coamo, praying that said subsidy be paid; 8. Another resolution of February 7, 1900, renewing aforesaid request, in view of the distressing situation of the laboring classes in the municipal district at the date of the resolution, and by constructing the hall work would be afforded the laborers; 4. Another resolution praying that the appropriation be paid and stating therein that it had been recognized by the office of the Secretary of the Treasury, April 25, 1899, who had informed the Alcalde that it would be paid without delay; 5. A resolution of the Liquidating Commission passed by two votes against one, to the effect that the Commission had no power to recognize the validity of the subsidy as a claim against the Diputación Provincial, because said Commission was created to examine and approve valid claims, based upon legal consideration of services rendered and supplies furnished to the Diputación, while the other member of the Commission was of the opinion that the request should be granted as soon as it was shown that the building was being constructed; 6. A communication from the Commission to the Alcalde forwarding said opinions; 7. A resolution of the Municipal Council to the effect that this court be requested to take up this matter and decide it in favor of the Municipality in view of the legality of the claim, and the reply of the court suggesting that it exercise its right in due form, whereupon the Municipal Council resolved that tffe Alcalde be authorized to employ counsel to take charge of the matter.
The Municipal Council of Coamo brought an action based upon the foregoing facts, demanding that judgment be rendered declaring valid the obligation contracted by the late Diputación Provincial, amounting to six thousand provincial pesos, equal to three thousand six hundred dollars, United States gold, and that it devolves upon the Treasurer of Porto Rico to satisfy said obligation out of the funds of the People of Porto Rico, of which he is custodian, and that he be adjudged to pay without delay, said sum with costs to the plaintiff.
In answer to the complaint the Fiscal pleaded a want of capacity on the part of the plaintiff, and prayed that should this plea be overruled, the complaint be dismissed with costs against plaintiff, setting forth as facts that the Diputación had granted the subsidy, a resolution which was ordered by the Insular Government to be complied with, but that the Municipal Council had not received the money; that the Diputación having been abolished, on October 29, 1898, the Municipal Council claimed that the Treasurer had assumed the assets and liabilities thereof with the obligation to pay its debts, and after going through all the stages of administrative procedure applies to the court, and as legal grounds alleged: that as the powers of Municipal Councils were restricted, they had no legal capacity to prosecute such claims, except when especially conferred upon them by law, and as it had not been shown that the Municipal Council of Coamo had been so authorized, there was' a lack of capacity; that even if it had the necessary capacity to sue, the action could not be maintained, because the Diputación having been abolished, the transfer of its properties to the Government for the purpose of meeting its outstanding liabilities, did not mean that it was to pay sums that did not come within such designation, but were rather in the nature of a benefaction; that in making payments it could not exceed the available assets, beyond which it was not obligated, nor could it apply for the purpose any of the properties that were set apart for charitable and educational purposes: that the subsidy or donation had been intended as an aid, and as it was not shown that the w.ork had been commenced, the obligation had extinguished for non-performance on the part of the Municipal Council; and that the Diputación, in allowing the subsidy had violated article 77 of the Provincial Law, made applicable to Porto Rico.
The taking of evidence having been ordered, none was ottered by either of the parties within the period ptescribed, and on motion of the plaintiff the case was proceeded with, a day being set for the hearing, when both parties presented arguments in support of their respective claims. All the rules of procedure established by law for courts of first instance were complied with. Judge Juan Morera Martínez prepared the opinion of the court.
Municipal Councils, “Deputations” (Legislatures), and the State, were and are required to include in their budgets certain items made compulsory by law because they have reference to unavoidable expenses and services, and such voluntary items as are needed to cover other expenses and services deemed advisable, in accordance with the means at their disposal.
The resolution of the Diputación being as set forth in the first finding of fact it should be included among the voluntary, and not the compulsory items, and 'inasmuch as it has not been shown that the work was commenced, as is to be inferred from the other resolution contained in said finding of fact which was necessary in order to have a right to recover, the claim presented in tins suit can not be sustained.
The question not being one of a claim against the Diputación arising from an obligation on the part of the latter, but only as a favor or gift to aid in the construction of a work incumbent upon the Municipal Council, and moreover, as it has not been shown that the item was included in the budget, and the Diputación having been abolished on November 29, 1898, by General Order No. 17, the sum claimed can only be viewed as a concession which was not fulfilled by the concessionary whose duty it was to ex ecute tlie work, as the construction of the town hall is a service of a municipal character.
We adjudge that we should declare and do declare that the complaint does not lie; the Administration is .exonerated from all responsibility in the matter and, accordingly, the Treasurer of Porto Eico is not under any obligation to pay the sum claimed in this suit by the Municipal Council of Coamo, costs being taxed against the plaintiff.
Thus by this our judgment do we pronounce, command and sign. — Juan Morera Martínez. — Juan Hernández López. — -Jacinto Texidor”.
From the foregoing decision the attorney for the Municipal Council of Coamo took an appeal which was allowed, and the record having been forwarded to 'this Supreme Court, the parties were summoned, the procedure provided for by law being complied with a day was set for the hearing which was had in the presence of the parties.
Mr. José de Guzmán Benitez, for appellant.
Mr. del Toro, Fiscal, for respondent.

Opinion:
Mr. Justice Sulzbacher,
after sétting forth the above facts, delivered the following opinion of the court:
The foregoing findings of fact are accepted.
The resolution of the Provincial Committee and Associates, which afforded a basis for this appeal, was in the nature of a temporary measure, according to article 61 of the Provincial Law of December 31, 1896, and as it does not appear that the Diputación had finally passed upon it as required by said article, it therefore lacks a condition that is necessary to create an obligation capable of being demanded in a court of justice, for which reason the Municipal Corporation of Coamo has no right of action in the premises.
We adjudge that we should affirm, and do affirm, the judgment appealed from, rendered by the District Court of' San Juan, December 22, 1902. A certificáte of this decision is ordered to be forwarded, and the record returned to said court for the proper purposes.
Chief Justice Quinones, and Justices Hernández, Figue-ras and MacLeary, concurred.