American Railroad v. Feliu
American Railroad v. Feliu
Opinion of the Court
delivered tbe following opinion:
The documentary evidence introduced by the complainants shows that while La Compañia de los Ferrocarriles de Puerto Rico was building the line of railway now controlled by the American Railroad Company of Porto Rico, one section of the road was planned to pass by Sabana Grande, which was shown by surveys to be the logical route. Property owners near Lajas got together on July 1, 1901, and made propositions for rights of way, which induced the constructing company to relocate its line, and run it near Lajas. In this way the railway actually passed through two pieces of property belonging to the defendant Francisco Feliu. The meeting was presided over by Pedro Santos Vivoni, and a fervent address in favor of the project was made by Francisco Feliu. A resolution was adopted, favoring the new route and promising rights of way, and it was signed by all present, including Feliu. The chairman of the meeting was authorized to convey the result of the meeting to the railroad company, and take such steps as were necessary in the premises. This was done; the said Yivoni and the railroad company made a contract; and under this the road was actually built. The defendant stood by and saw the railroad laid, and only .objected to the contractor that certain trees were being cut down, although he admits that none were cut except where the line of the road would necessarily pass. On March 22, 1903, complainant, the American Railroad Company of Porto
Complainants have filed this bill on the equity side of the court, asking for specific performance of the alleged contract, and it is resisted on the ground that, under the law contained in the Civil Code' of Porto Pico, §§ 637, 638, and 641, the elements of a valid sale of land were not present.
The case brings up the double question whether the Porto Pican statute would control under the constitutional provision that remedies in equity, of course including specific performance, shall be preserved in the Federal courts, and whether the Porto Pican statute inhibits the kind of- contract appearing in the facts of this case.
A contract, .under § 1228 of tbe Porto Rican Code, has tbe following requisites:—
“1. Tbe consent of tbe contracting parties.
“2. A definite object which may be tbe subject of tbe contract.
“3. Tbe cause for tbe obligation which may be established.”
Sec. 1238 provides: “All things, even future ones, which are not out of tbe commerce of man, may be objects of contracts.”
It would be difficult to define tbe subject more broadly. Tbe only question is, Does tbe law require a form of contract which has not been complied with in this instance ? The mortgage law of Porto Rico requires certain forms of conveyance and registration, and there is no question that tbe informal contract made at tbe public meeting in tbis cause was not such a conveyance. Tbis, however, is not tbe point of tbe case. If it bad been a conveyance, there would have been no suit in tbe premises. Tbe question is, Was there such a contract or agreement for a conveyance that could be enforced by tbis court on its equity side ?
In passing, it may be noted that tbe law of Porto Rico is not more strict than what is called tbe statute of frauds of Great Britain and tbe states following tbe common law; nevertheless there has never been any question that a court of equity will enforce a contract made for a valuable consideration, and com
In Porto Eico, while there is no statute of frauds, there are many provisions as to contracts. Among them may be mentioned § 1245 of the Civil’ Code, which declares that “contracts shall be binding, whatever may be the form in which they may have been executed, provided the essential conditions required for their validity exist.”
Sec. 1246 provides: “Should the law require the execution of an instrument or other special formality in order to make the obligations of a contract binding, the contracting parties may compel each other to comply with said formalities from the moment in which consent and the other requirements necessary for their validity have taken place.”
The next section requires that “acts and contracts the object of which is the creation, transmission, modification, or extinction of property rights on real property” must appear in a public instrument, and under the two preceding sections just quoted there appears no reason' why the execution of such an instrument should not be enforced in the courts, when a proper contract has been entered into in the premises.
In reply to this, the sworn complaint in the law case of the defendant here is relied upon by the complainant, wherein the value of the property but a short time ago is alleged to have been many dollars in excess of the amount necessary to give this court jurisdiction, and, in the absence of any evidence that the value has changed, it is considered that the defendant is estopped now from denying the value to be over $1,000.
Upon the whole, therefore, the complainant would seem to be entitled to relief, and a decree will be entered accordingly.
Reference
- Full Case Name
- AMERICAN RAILROAD COMPANY OF PORTO RICO v. FRANCISCO FELIU
- Status
- Published