2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 5 - Extraordinary Remedies (§§ 3391 — 3576) › Chapter 281 - Quo Warranto (§§ 3391 — 3397) › § 3396 - Judgment; sale of land; fine

In case any person or corporation against whom any such petition is filed, is adjudged guilty, the court may give judgment of ouster against such person or corporation from the office or franchise to which the petition refers, and fine such person or corporation for usurping, intruding in, or unlawfully holding and executing such office or franchise, and also give judgment [against] the defendant for the costs of the prosecutions; Provided, That whenever sentence is pronounced declaring that the defendant has usurped or is unlawfully exercising the function of any public office, said defendant must cease immediately in said office, and abandon the same; and if he fails to do so, the court, on petition of the Secretary of Justice or of any person interested in the office, shall issue an order to the marshal compelling him to oust the defendant from office.
Whenever, in the opinion of the court, it is satisfactorily established that the corporation or corporations have performed acts or exercised rights not conferred by law, or in violation of the express provisions thereof, the judgment entered shall, in case the defendant is a domestic corporation, decree the dissolution thereof and the prohibition to continue doing business in the country; and in the case of a foreign corporation, the nullity of all acts done and contracts made by the defendant corporation or entity; and in addition, said judgment shall decree the cancellation of every entry or registration made by the said corporations in the public registries of Puerto Rico; and when the decree of nullity affects real property, and the Commonwealth of Puerto Rico has chosen to confiscate it or orders it sold at public auction, the final judgment shall fix the reasonable price to be paid for said property. For these purposes, the just value of the property subject to alienation or confiscation shall be fixed in the same manner as it is fixed in cases of condemnation proceedings. For the purpose of carrying out the provisions of this section, the Supreme Court is hereby empowered to appoint receivers who, [on] behalf and with the approval of the Supreme Court shall have exclusive charge of the liquidation and sale of the property of the corporation or corporations affected.
In all cases the receivers shall give preference, in the acquisition of lands, to the Land Authority of Puerto Rico, which shall have a legal preferential option for the purchase of said lands for the fair price fixed by final judgment. The receivers thus appointed shall be bound to initiate the sale of the lands within a period of not to exceed six (6) months from the date the receivership is established. The Land Authority shall have a preferential right to purchase said lands for the fair value thereof, within a period of not to exceed one (1) year, during which time said lands cannot be sold to any other person or entity. Said period of one (1) year may be extended for one (1) year more, with the approval of the Governor. After this period or periods, the lands shall be sold at public auction and the Land Authority may bid at the auction sale held to dispose of such lands. The Authority shall be entitled to priority or preference in the purchase of such lands at the public auction in those cases where it may bid a price equal to that offered by the highest bidder. The edicts advertising the public sale shall so recite.
The violation of an order prohibiting the doing of business after final judgment is rendered shall be punished by a maximum fine of five hundred (500) dollars for each day such entity may continue in operation, enforceable on the property of the entity, and the persons representing it shall be guilty of contempt of court, punishable by imprisonment for a minimum term of from one (1) to six (6) months in jail.
Whenever judgment is rendered in favor of any defendant, such defendant may recover costs from the plaintiff, including a reasonable attorney’s fee.
For the purpose of fixing the value of the property, the Commonwealth of Puerto Rico, through its agents or representatives, is authorized to enter the properties the object of the controversy, whatever their nature or condition may be.
History —Code Civil Proc., 1933, § 645; Aug. 7, 1935, No. 47, p. 530; May 14, 1941, No. 183, p. 1382.