Nieves de Vélez v. Vélez Nieves
Nieves de Vélez v. Vélez Nieves
Opinion of the Court
delivered the opinion of the court.
In the complaint herein there was an attempt to set up two causes of action: the first one in the name of Julia Nieves and her daughter Carmen Lydia Vélez, and the second one in the name of Mueblería Los Novios Incorporated.
In the first cause of action Juan Vélez is joined as a party defendant because he refused to appear as plaintiff. It is essentially alleged that Reinaldo, Lucas, and Juan Velez had done business under the firm name of Reinaldo Vélez & Co., using the- trade-name Mueblería Los Novios in all its printed matter as well as in its branches established in different towns of the Island and in all the vehicles belonging to the enterprise; that in March 1940 there was organized under the laws of Puerto Rico, the corporation Mueblería Los Novios Incorporated, whose only shareholders, Reinaldo, Lucas, and
Plaintiffs Julio Nieves and Carmen Lydia Vélez finally alleged that it would be impossible to determine exactly the damages that they would sustain, and that they lack a plain, speedy, and adequate remedy in the ordinary course of law.
The second cause of action set up in the name of the first corporation Mueblería Los Novios Incorporated, substantially contains the same allegations as the first cause of action, and the complaint concludes with the prayer, applicable to both causes of action, that a permanent writ of injunction be issued directed against defendants Lucas Vélez, Francisca Irizarry, and Fernanda Vélez, ordering them to refrain from doing business, either through themselves or through any other person, under the name of Mueblería Los Novios Incorporated; and that another injunction be directed to defendant E. D. Brown, in his capacity as Executive Secretary of Puerto Rico, ordering him to refrain' from issuing, by himself, or through any of his employees, a certificate of registration of the second corporation under the name of Mueble-ría Los Novios Incorporated, and that while the writs of permanent injunction are pending, that preliminary writs be issued containing the same prohibitions.
1. That Julia Nieves and Carmen Lydia Vélez lack legal capacity to claim for themselves the name of Mueblería Los Novios Incorporated, which belongs exclusively to the dissolved corporation, and that the latter lost the right to use said name Mueblería Los Novios Incorporated because upon filing its petition for dissolution it failed to specifically save its right to the corporate name;
2. That the dissolved corporation has no legal capacity to sue or be sued in connection with the continuation of its business;
3. That the petition for injunction does not state facts sufficient to constitute a cause of action in favor of the plaintiffs and against the defendants; and
4. That there exists a nonjoinder of parties defendants for failure to join the new corporation, which is a real party in interest and has legal capacity independently of the stockholders.
Upon deciding the questions involved, the lower court rendered judgment wherein it sustained the demurrer interposed as to the first cause of action because, in its opinion, the stockholders had no legal capacity to claim for themselves the name of the corporation; it sustained the objection of nonjoinder of parties- defendants on the ground that, in its opinion, the new corporation should have been joined, and overruled the demurrer as to the second cause of action because the corporation in liquidation had legal capacity to defend its interests. It granted the plaintiffs a period of ten days within which to amend the complaint. The plaintiffs refused to amend it and asked the final judgment be entered, in order to take the present appeal, and thereupon the court rendered judgment dismissing the complaint with costs.
The alleged new corporation has not acquired, according to the complaint, legal capacity to sue or be sued, because pursuant to § 8 of the Corporation Law, in order that a corporation should acquire legal capacity it is not enough to file its articles of incorporation in the office of the Secretary of Puerto Rico and to pay the fees provided by law; it is indispensable that the Executive Secretary should certify, under his seal, that the said articles containing the statements required by § 7 have been filed in his office. In the present case it is evident from the complaint that such certificate has not been issued. It is precisely to prevent the issuance thereof that the writ of injunction against the Executive Secretary has been sought. Since the alleged new corporation has not acquired corporate existence, it can not be joined as a party defendant; but as defendants Lucas Velez, Francisca Irizarry, and Fernanda Vélez are trying to obtain the certificate of incorporation, they are the ones who
For the reasons stated the judgment appealed from must be reversed and the ease remanded to the lower court in order that the plaintiffs be given another opportunity to amend their complaint in accordance with the terms of this opinion.
We must presume that when, the plaintiffs allege that the corporation si still doing business they refer to its liquidation and termination, and not to the commencement of new business, inasmuch' as it is expressly prohibited by 4 27 of the Law of Corporations.
See footnote (1), supra.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.