McFadden Rice Milling Co. v. Armstrong
McFadden Rice Milling Co. v. Armstrong
Opinion of the Court
delivered the following opinion:
The complaint in this caso is almost identical with that in Nos. 1418, 1417, 1419, and 1420, brought by the same plaintiff against different defendants, each alleging the sale of rice, and its unlawful rejection by defendants upon arrival. It is alleged that thereupon the plaintiff sold the rice for account of the defendant and now sues for the difference in price. There is filed in each case a demurrer setting up that the complaint is defective because in the first place it fails to aver proceedings for the appointment of experts under § 327 of the Code of Commerce of Porto Pico, and in- the second, that the complaint does not allege the judicial deposit of the goods prior to bringing suit under §§ 332 and 339 of' the same Code, as well as under § 1(578 of the Civil Code as to depositum. It becomes necessary, therefore, to determine whether these sections apply to a suit of the character of the one at bar.
1. The Spanish Code of Commerce has not been expressly re-enacted in Porto Pico, but is in effect, if at all, because
2. As already decided in Standard Rice Co. v. Carrera, ante, 136, cases like the one at bar do not strictly come under a local code but under the general commercial law as administered by the courts of the United States. Groods must cease to be in interstate transit and become a part of the general property of the community before they are subject to the;
On the other hand, §§ 1068 and 1091 of the Civil Code as to fraud and rescission, relating to remedies, may very well apply. It is argued for the plaintiff that it had its choice of two remedies, — specific performance under the Code of Commerce, or rescission and suit for damages under the Civil Code. Whatever may be true of the former, the plaintiff is proceeding under the second remedy, that of § 1068 of the Code, seeking damages. It is held in Pesquera v. Mari, 23 P. P. R. 592, that § 1068 applies to both civil and commercial transactions. To the same effect is Wantzelius v. Corado, 24 P. R. R. 288. Manresa Comentario, art. 1124 of the Spanish Code, Porto Pico, 1091.
3. Judicial deposit to carry out the Code of Commerce ai*ts. 325-332 constituted a special feature of the Spanish law of civil procedure, part II. title 2, arts. 2080 — 2088. This has been superseded by the present Code of Civil Procedure and cannot be said now to prevail. Even if this were otherwise, the deposit procedure would be inapplicable to the Federal court, for in Federal practice judicial deposit is unknown except as a money tender in a pending case. Judicial deposit of the kind claimed in the demurrer is a part of the Spanish procedure by which the courts supervise commercial transactions. This is unknown in American law and cannot be imported into it by any theory of adoption of local remedies.
It follows that the demurrer is not well taken and must be overruled on both grounds.
'It is so. ordered.
Reference
- Full Case Name
- McFADDEN RICE MILLING COMPANY, Plff. v. ARMSTRONG & COMPANY, Dft.
- Status
- Published