Jones v. Caneja
Jones v. Caneja
Opinion of the Court
delivered the opinion of the court.
"William A. Jones, Bishop of the Roman Catholic Apostolic Church of Porto Rico, filed a complaint against Marcos T. Caneja and others for the sum of $639.45. The claim is based on the following facts: By a public deed executed in 1880 Manuel Diaz Caneja acknowledged an annuity of $2,842.11, Spanish money, in favor of the “Hospital de la Concepción” with interest at five per cent, per annum, secured by a mortgage on a property of eight hundred acres which is properly described, binding himself to pay the 'same
In their answer the defendants admitted the creation of the annuity, but alleged that it was for three thousand Mexican pesos with interest at five per cent per annum payable in the same money. Then they set up three new defenses. In the first they maintain, in brief, that by reason of the change from provincial money to American money the principal of the annuity was reduced to $1,705.26, and that with this principal for a basis they have paid the interest on the annuity. In the second they allege that inasmuch as the directorate of the hospital had been accepting the interest with the consent and approbation of the former bishops of Porto Eico, the present bishop is estopped from bringing this action. In the third they assert that if they owe the sums claimed, an action for the interest for the years 1900 to 1911 is barred by limitation, in accordance with the provisions of subdivision 3 of section 1867 of the Civil Code.
The issue being thus joined, the case was brought to trial and both parties offered evidence, the district court finally entering judgment sustaining the claim of the plaintiff from the year 1911. From that judgment the defendants took this appeal.
There are two fundamental questions to be considered and decided in this case, to wit: The kind of money in which the annuity was created and in which the interest was agreed to be paid, and the question of estoppel.
Threfore, the contract was for the sum of three thousand pesos in current money, but specified its equivalent in Spanish money, it being specifically agreed that the interest should be paid “without discount of any kind, either for taxes, change of money or otherwise.” This being so, the change brought about in this Island by reason of the adoption of the provincial money and the exchange of said money for American money did not fundamentally affect the contract. It will only be necessary to take into account the official currency at the present time for the purpose of determining, in its case, its relation to the currency agreed to, when payment is to be made.
According to section 1138 of the Revised Civil Code, “payment of debts of money shall be made in the specie stipulated and, should it not be possible to deliver the specie, in legal silver or gold coin current in Porto Rico. ’ ’ Except for the substitution of the word “Spain” for the words “Porto Rico” that section is the same as section 1170 of the old Civil Code.
What kind of money was agreed upon in this case? The
As may be seen from the language of the appellant, the provincial money was adopted some years after the execution of the contract and the contract specifically set forth that there should be no discount by reason of the.change of money, and what the appellant contends for in this case is really a discount.
Besides, this question relative to the effect of the change of money in 1895 has been considered and decided by this court in the case of Convent of the Reverend Carmelite Nuns v. Silva, 13 P. R. R. 144, as follows:
“Even when' the circulation of North American, French and Mexican money was authorized in Porto Rico and a legal value was placed upon such money in relation to the official money of the country, they were never considered1 official money, such onty being the fuerte money of Spanish coinage the circulation of which was authorized by Royal Decree of 1857 until the year 1895, when the Mexican money was substituted by the special money created for Porto Rico and the value, of which was not the same as that of the Spanish money. The exchange of money provided by section 11 of the Organic Act refers only to the special money in Porto Rico and does not include Spanish money properly speaking, or any other foreign money which must lie regarded as merchandise, the value of Avhich is subject to the fluctuations of the market.- — The payment of obligations constituted in Spanish money must be made in the same money or in American money, not at the rate of exchange ■established in the Organic- Act of Porto Rico, but at the current Tate of exchange.” . . ■
Taking in consideration, tlien, the ternas of the contract 'and the* law^ and' jurisprudence oh the matter, the trial court
Let us examine the question of estoppel. At the trial Rev. Luis Rodriguez, Secretary of the Bureau of Accounts of the Bishopric, testified on behalf of the plaintiff and, among other things, said that in examining the books of the bureau he noticed “that there had been an incorrect payment and the Mother Superior of the hospital was collecting less than she should collect; that witness called her attention thereto * * * and that was the origin of this suit * * *. That the error which the witness found was due to a reduction made in the payment of the interest; that less interest was paid than should have been paid and, consequently, the reason why they paid less interest was because they believed that the principal had been reduced forty per cent; that they believed there was a reduction of the principal, and that witness knows of said reduction because he has examined the books; that the reduction appears to have been made by Father Caneja in the handwriting of Father Caneja and of the Mother Superior by direction of Father Caneja, who is an uncle of the witness; that as to whether he knows the reasons Father Caneja had for doing this, witness can only submit the fact; that the reduction is not dated in the books. ’ ’
Lucía FJorz, the Mother Superior of the hospital in whose favor the annuity was created, called by the defendant, testified, among other things, in answer to questions of the attorney for the said party, as follows: “That as appears from the book of annuities in favor of the hospital, examined by witness while testifying, there appears at folio 225. the amount of four thousand pesos reduced to two thousand, eight hundred and forty-two pesos and eleven cents, provincial money which at a discount of forty per cent, was reduced to one thousand, seven hundred and five dollars and twenty cents, the interest thereon amounting to eighty-five dollars and twenty-six cents.” To questions of the attorney for the
It is well to note, besides, that although there are several defendants in this case, only defendant Marcos Tomás Oa-neja had been paying the interest on the annuity since 1908, as appears from a letter written by him to the Mother Superior of the hospital on December 22, 1915.
These being the facts of the case, we think that the defendant is not in a position to invoke the doctrine of es-toppel in his favor.
Affirmed.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.