Fortez v. Carrion
Fortez v. Carrion
Opinion of the Court
delivered the following opinion:
The bill herein was filed on April 3, 1923, which bill prayed for an injunction against the defendant in his capacity as trustee of the Central Defensa, Inc., which corporation had previously been declared a bankrupt by this court; and it was sought in and by said prayer that an injunction be issued restraining the said trustee and all persons acting under him or by his authority from the further use of a certain strip of land forming part of a tract of 78 acres, more or less, conceded to be the property of the plaintiffs and located at Caguas, Porto Bico, in this Island, not far from the sugar mill of said Central Defensa, Inc. And it was also sought in and by said prgyer that the said defendants should be ordered to-desist from enterr-ing upon the said strip of land for the purpose of operating a
The court issued an order to show cause; and an answer to such order was filed by counsel for defendant on April 21st, 1923. This matter has been very thoroughly and skilfully ^argued by counsel for the respective parties.
Although it is claimed by counsel for plaintiffs that the two contracts, dated September 8th, 1920, are virtually one contract, and must be considered as such, a moment’s reflection will make it clear that these contracts are distinct and separate and must be so regarded.
One contract is in the nature of an option giving the Central Defensa, previous to its bankruptcy, of course, the right to purchase the real estate then and now owned by the complainants, upon certain terms and conditions therein set forth. The second contract, it is admitted, granted to the Central Defensa an easement or right of way across the same tract of real estate described in the first contract, for the purpose of enabling the said Central Defensa, Inc., to construct and operate for a period of twenty-five years, a line of cane railway in connection with the operation of the sugar factory of the said Central Defensa.
3ÑTow, if the defendants had intended that the grant of the right of way should be dependent upon the exercise by the Central Defensa of its right to buy the property under the option, the plaintiffs should have said so, but they did not. It may have been a foolish action on their part to sign these two sep
When the petition in bankruptcy was filed and thereafter the trustee was appointed, he found as one of the assets of the bankrupt corporation these two contracts. He was not able to exercise his right to purchase under the first contract because he was without funds to do so, but he was able to exercise the rights which Central Defensa had through the second contract, and construct a right-of-way railroad over the land in question, because this court provided him with funds for that purpose. Such action, of course, by this court, is not binding upon these plaintiffs because they were not parties to the proceeding and. they have a perfect right to contest such action of this court as operating to their injury. But it is conceded that the decisions
To this ruling counsel for plaintiffs excepts.
Done and Ordered in Open Court, at Ponce, Porto Pico, this 26th day of April, 1923.
Reference
- Full Case Name
- BENJAMIN FORTEZ AND PETRONA GONZALEZ DE FORTEZA v. RAFAEL CARRION, Trustee in Bankruptcy of Central Defensa, Inc., Dfts.
- Status
- Published