Successors of L. Villamil & Co., S. en C. v. Pacheco
Successors of L. Villamil & Co., S. en C. v. Pacheco
Opinion of the Court
delivered the opinion of the court.
This appeal was taken by Successors of L. Villamil & Co., 8. en C., from a judgment rendered by the District Court of Humaeao dismissing its complaint in intervention (ter-cería).
Successors of L. Villamil & Co., 8. en C., and José B.. Méndez signed on June 16, 1926, a contract whereby the' former conditionally sold to the latter a “Mack” truck for the sum of $6,650, of which the purchaser paid $997.75 in. cash, and agreed to pay the balance amounting to $5,652 in twenty-three monthly instalments of $245.75 each for which the purchaser was. to execute promissory notes payable h> order with interest at the rate of 9 per cent per annum and to be secured by Juan Méndez Santiago. On May 16, 1928, the full purchase price should have been paid, but it was-not so paid, for Méndez was then owing the sum of $2,383.73, and on that same day the parties entered into a new contract of conditional sale whereby the purchaser paid $283.73 in cash and agreed to pay the remaining $2,100 in fourteen
Although the appellant assigns six errors, the last of which refers to the imposition of costs, and the remaining five to the evidence, we may consider and decide them jointly.
At the trial the plaintiff proved all the above facts and the defendant Etelvina Pacheco presented no evidence tending to show that the second contract of conditional sale of May 16 was simulated. The district court did not expressly state in the opinion delivered as a basis for its judgment that said contract was simulated as alleged by the defendant, but confined "itself to casting a cloud over the agreement as if thereby it could be concluded that the same was in fact simulated because it was not required therein that the promissory notes be secured, as was done in the first contract; because the contract of May was not recorded until August; and because the transfer of the truck by Méndez to Villamil on September 27 was not recorded until the 9th of November, that is, on the day following the levy of the taxes.
The fact that the new promissory notes, unlike the former notes, were not secured is of no importance, because the original indebtedness amounting to $5,652.25 had been reduced to $2,100, and because the testimony given by José B. Méndez, on cross-examination by the defendant at the trial, shows that although his cousin, Juan Méndez Santiago, was solvent at the time the first contract was entered into on June 16, 1926, he was insolvent when the second contract was executed on May 16, 1928, as his property had been attached by the Banco Territorial y Agrícola de Puerto Rico; besides, Mr. Pizá testified that the security was of no importance to the Villamil concern, which confirms the fact that payment of the notes for $2,383.73 pertaining to the first con
For the reasons stated, as the truck did not belong to José B. Méndez but to Succrs. of L. Villamil & Co. at the time of the attachment, the judgment appealed from must be reversed and another rendered instead sustaining' the complaint in intervention, without special imposition of costs.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.