Oriz De Bertran v. Pou y Rios
Oriz De Bertran v. Pou y Rios
Opinion of the Court
delivered tbe following opinion:
Whenever the defendants are named it will include all but the Carmelite Mothers.
The bill in this action charges that the plaintiff bought of the
The bill charges that the land was conveyed by the defendant by a conveyance free from mortgages or other liens, and charges that at the time of the transfer there was one 1,000 pesos censo and one 2,000 pesos censo. Thereafter averments are made tending to show that plaintiff was an innocent purchaser. The prayer is that the two precended liens on the land of the plaintiff be decreed to be void as against the prior claim of the plaintiff, and that the plaintiff may have such other relief in the premises as the. nature and circumstances of the case may require.
Thus it will be seen that the action is one to remove a cloud from the title. The learned special master reports as to the 1,000 pesos censo, that the complainant bought the land subject to the lien of the 1,000 pesos censo, and probably knew of it. Therefore the said censo should remain as a lien upon the land in favor of the Carmelite Mothers, but inasmuch as tire plaintiff bought from the defendants with the definite statement from them that the land was free and clear from encumbrances, though probably both parties knew of the 1,000 pesos censo, such statement or recital made by them was in fact a guaranty that the land was free and clear from encumbrances, and they probably agreed to pay same if ever required to do so. They are now estopped from alleging against this plaintiff that she had knowledge of the liens, and took and paid for the property at a lesser price than its value, on account of said
Unquestionably in a case of disputed facts, the findings of fact by the master have all the presumptions in their favor, but not as to the conclusions from undisputed facts, and the findings must be supported by at least some evidence. Decreeing the validity of the 1,000 pesos censo, and directing its payment, is foreign to this action. As soon as the so-called cloud is found to be a lien, the power of the court ends as far as the affirmative action is concerned. If valid, the defendant is entitled to have a decree dismissing the bill.
In actions to remove a cloud from title it is a universally Teeognized rule and principle of equity that the complainant must establish the invalidity of the cloud. That is the object and purpose of the action. The pretended right or title which is alleged to be a cloud upon the title of the complainant must be clearly invalid or inequitable, and the burden is on the complainant to clearly show the invalidity of defendant’s title. If its invalidity is merely doubtful, it is more than a cloud, and the defendants are entitled to have it tried in an action at law. Here the master removes all question of doubt by finding that the 1,000 pesos censo is a valid and equitable lien. But the
The learned special master finds and reports that the complainant bought the land subject to said lien of 1,000 pesos censo. If this finding stands, it is binding on the court, and pro tanto defeats- the plaintiff, but in justice to all the parties I am compelled to say that, after careful examination, I am unable to find a word of evidence tending to prove that either party knew of the existence of either lien; and if the finding can stand, it will' be for a want of evidence to impeach the legal effect of the contract of sale, and also the support of the supreme court of the island given the two liens.
If the complainant bought the land subject to the lien, she has no right of action or claim against anyone. She cannot look to anyone for payment of the lien, — certainly not to the defendants, — and particularly in an action to remove the same as a cloud. Therefore it is utterly unwarranted to direct the defendants to pay the amount of the 1,000 pesos censo independent of any question of contract between the complainant and the defendants in regard to the title. The difficulty of a court of equity acting equitably and intelligently will be seen by án examination of the evidence, the want of evidence, and
1. The plaintiff was put upon inquiry and bought the land subject to the said lien of 1,000 pesos censo.
2. That the plaintiff probably knew of the existence of this lien.
3. That the defendant made a definite statement that the land was free and clear of all encumbrances, which in fact amounted to a guaranty that the land Vas free and clear from encumbrances.
4. That the defendants should pay the 1,000 pesos censo.
5. By their deed the defendants aver, they not being bound to the warranty of title.
6. That the supreme court of the island, in suits brought for that purpose, ordered the registrar to transfer the two censos from the old books to the new as liens upon the property in question, which was done.
An extreme difficulty is presented by the want of evidence and the objections made to the consideration by the master of the so-called oral testimony taken November 14, 1908. After a most careful examination of the record, I am unable to find any evidence to sustain the finding and recommendations that the defendants are liable in this action. The liability, if any, must be found in the deed, for there is not a word dehors the deed upon which a liability can be fastened. As far as the complainant is concerned, the deed was never in evidence before the master or the court. ' In any court evidence sufficient to sustain the finding must be produced. Valuable property rights cannot be disposed of without evidence to justify it; and it is a universal rule that on exceptions to the report of a
These views are taking a wide range because of the blending of an action to remove a cloud, a claim in effect for damages growing out of the sale of land absolutely independent of the cloud, seeming to assume that if the defendants sold plaintiff the land with the statement that the same was free and clear of all encumbrances, and it turned out that there were encumbrances on their face, and that in an action to remove them as clouds the grantor could in that action be compelled to pay that part of the cloud found to be a valid lien. In other words, an action to remove would be converted into an action for damages. This proceeding is not for a court of equity. The primary relief not having been established, the court could not retain the action for the purpose of compelling the defendants to make payment. Their liability depends upon the contract Of sale, which cannot, as has been said, be considered in an action to remove a cloud in no manner connected with the sale. It is incongruous, in an action to remove a cloud, to claim that parties in no way connected with the cloud should be brought in for the purpose of making them liable in a contract in no way connected with the cloud, and which is exclusively for a court of law.
Multifariousness would be a good objection to the bill, and sufficient to warrant its dismissal, for it is fatally multifarious, both as to the parties and causes of action. If only a cloud, then the defendants are not liable, and, as stated, should not be before the court. If liens, then an action to remove a cloud cannot be maintained.
Further, as will more fully appear from the master’s report hereinafter quoted, this 1,000 pesos censo was declared by the supreme court of this island to be a valid lien. Therefore in this action to remove a cloud it cannot be interfered with or payment compelled, if the supreme court declared the same to be liens. But even if the court has power in this action to decree it a valid lien and direct payment, it is difficult to under
Therefore it appears clear that neither upon the law, facts, evidence, or findings of the learned special master can the defendants be made liable in this action, or can the 1,000 pesos censo be removed as a cloud, or can the defendants be compelled to pay the same, as found and recommended by the master.
There is nothing in the evidence to imply the doctrine of estoppel or invoke it. Estoppels are not created and do not arise upon such evidence as is found in this case. Not one word or act upon the part of the defendants upon which plaintiff acted or relied, and nothing precluded them from asserting all the facts in the case.
The doctrine of innocent purchasers for value is of no avail to the plaintiff as against the defendants, and cannot be applied; and certainly not to make them liable to pay the 1,000 pesos censo, or in any manner applied to them. It can only be applied, speaking generally, in favor of an innocent purchaser for value as against a person holding a deed or lien, guilty of mistake or laches in recording or not recording, or some error on his part causing loss.
There is a substantial difference, in the opinion of the master, between the character of the two censos as found and recommended; for in the.l>000 pesos censo he finds and reports it a valid lien, and that the defendants should be required to pay it, but as to the 2,000 pesos censo the master finds 'and recommends that the Carmelite Mothers have been guilty of such laches in not having caused their lien to be transferred
“Upon receiving her deed from defendant Pou y Eios, plaintiff attempted to inscribe same in tbe registry of property, but tbe registrar denied tbe inscription of tbe deed, in accordance with article 20 of tbe Mortgage Law, on the ground that tbe ownership of the grantors bad not yet been inscribed, it still remaining inscribed in tbe name of Eamon Pou y Buso, from whom tbe grantors bad acquired title, and tbe legal formalities for tbe inscription in tbe name of tbe grantors had not been complied with. Tbe registrar, however, in compliance with tbe law, entered a cautionary notice for tbe period of 120 days under tbe date of February 4, 1903.
“Thereafter, on July 1, 1903, tbe period of the cautionary notice of plaintiff’s title having expired, tbe defendant Car-melite Mothers applied to the registrar for a transference from tbe books of tbe old anotaduria of Yabucao to tbe present registry of Humacao of tbe two censos heretofore mentioned. This transference was denied by the registrar of property, on the ground that the land having passed into the bands of a third person, or, as it is expressed in American jurisprudence, “an innocent purchaser for value without notice,” and because tbe Carmelite Mothers bad not asked for tbe transfer within tbe period of one year from tbe promulgation in Porto Eico of tbe Mortgage Law and tbe execution thereof, which required that
Thereafter, Manuel Diaz Caneja, as representative of the Carmelite Mothers, in a suit against the fiscal of the district of Humacao, in the capacity of registrar of property of Humacao, to which suits these plaintiffs were not a party, applied to the court for an order that the registrar transfer from the old books to the new the said censos. The supreme court, by sentence of January 21, 1904 (see Castro, Supreme Court Reports, page 33), ordered the registrar to transfer said censos from the old books to the new, which was done, and the registrar inscribed the censos as liens upon the one third of the property in dispute, belonging to the plaintiff in this action, on the 14th day of April, 1904, and the 14th day of March, 1906, respectively, as requested in the petition filed. It is these two censos that the plaintiff is trying to have set aside in this cause.
The rights of the Carmelite Mothers rest upon a purely local statute, the true interpretation and effect whereof is to be found in the decisions of a local tribunal, not in the general principles and doctrines of commercial jurisprudence. The laws of Congress require the court to adopt as its rule of decision, in trials at common law, the law of the island of Porto Rico, except where the Constitution, treaties, or statutes of the Hnited States otherwise require or provide, and the same rule is applied by the Supreme Court of -the United States to equitable actions. The laws of Porto Rico include the law as construed and applied by the courts of Porto Rico. There is no principle of the Federal Constitution, or of any Federal law, or of general commercial law, involved in this case. Therefore
If the testimony of the plaintiff and that of her husband taken November 14, 1908, before the judge, proves anything, it is that plaintiff relied upon an examination of the records as to the title of the defendants, quantity and extent of liens, not upon any statements or representations made orally by the defendants. The rights of plaintiff, if any, as an innocent purchaser for value, cannot be considered in this action; and if any there be, it will not give any right in this action against the defendants, or compel the defendants to pay the 1,000 pesos, censo.
As practically said, if plaintiff has any right of action against, defendants, it must be at law on the promises in the deed, what
Being unable to approve of the findings and recommendations of the special master, being of the opinion that the exceptions to the report must be sustained, that the bill herein will not lie, that the complainant must be left to an action at law, I have deemed it best, on account of the importance and range of the subject and arguments of counsel, to give my views of the case for the information of counsel for the respective parties.
The decree should be drawn to show that the complainant is not entitled to have the 1,000 pesos censo adjudged to be a valid lien upon the land of plaintiff and remain as an' encumbrance upon the property in favor of the Carmelite Mothers, and paid by and satisfied by the defendants named, and the Carmelite Mothers ordered to accept the amount thereof, and cancel the lien upon the books of the registry of property.
That the complainant has no equity to be relieved in respect to any matter alleged in the bill or proven on the hearing, not having shown any circumstances which disclose a proper case for the interference of a court of equity.
The hill must he dismissed, with costs to the defendants, without prejudice to the plaintiff to take further legal proceedings as she may he advised.
Upon the receipt of this, the clerk of this court will, as early as possible, notify the counsel for the respective parties of the conclusion reached.
Reference
- Full Case Name
- DOÑA MARIA ERNESTINA FILOMENA ORIZ DE BERTRAN v. RAMON POU Y RIOS
- Status
- Published