Ruiz v. Commercial Insurance
Ruiz v. Commercial Insurance
Opinion of the Court
delivered the opinion of the Court-
On April 22, 1955, the Ponce Part of the Superior Court rendered judgment in civil case No. C.S.-53-1737, and, among other pronouncements, it ordered Ramón Ruiz and its insurer Commercial Insurance Company of Newark, New Jersey,, to pay the sum of $1,351.73 to The American Insurance Company of Newark, New Jersey. The insurer paid
Thereafter Ruiz brought an action under No. C.S.-56-736 of the same court against Commercial Insurance Company, claiming damages caused to his automobile, under the risk covered by policy No. 62-11203-H. As a matter of fact, this policy had been issued by Commercial and another company belonging to the same group, Pacific National Fire Insurance Co., assuming proportionately the risks covered, so that Commercial assumed the risk of the damages caused by Ruiz while operating the insured vehicle — public liability— and Pacific assumed the risk for the damages that might be caused to the said vehicle — collision.
In order to secure by judgment the payment of the balance of the credit amounting to $960 and interest thereon, American obtained an order in case C.S.-53-1737, directed to Ramón Ruiz and his insurer Pacific, to withhold the said amount
As we have already said, Commercial filed a motion in case C.S.-56-736 to accept the $2,900 check in full payment of the judgment. In the meantime, American filed a motion in case C.S.-53-1737, within which it had obtained an order to secure the effectiveness, summoning Pacific to show cause why it should not be held liable for the payment of the sum which it was ordered to withhold. Both motions were heard jointly. On the day set for the hearing, Pacific appeared and alleged that it had been relieved from responsibility from the moment it notified the attorneys for American that it proposed to deposit the full amount of the judgment. It assumes the same position before this Court upon stating in its brief that “there is no doubt that the attachment levied by American Insurance Company was a valid attachment, but the latter, through its attorneys, learned that an error had been committed when the Commercial Insurance Company answered the complaint filed by Ramón Ruiz, and that it was notified in time that the sum stipulated by the parties was going to be deposited and finally that it was deposited in the office of the clerk of the Superior Court of Ponce. The appellant (American) had an opportunity to intervene promptly in the case, but failed to do so.” The trial court held that Pacific “complied with the order of the court by depositing the full amount of the judgment rendered on December 11, 1956, and that it was not liable to the appearing party herein (American) because the latter had not been paid the sum due to it.” Appeal was taken from this judgment.
Reversal is in order.
A brief examination of the order to secure effectiveness directed to Pacific shows that it was expressly required, through its agent, to withhold the amount due Amer
Rocafort v. Cantero, 31 P.R.R. 484 (1923), cited by the trial court in support of its decision, does not apply. It does not have the scope sought of authorizing the deposit of a certain amount which is subject to effectiveness of judgment, ignoring the rights of the party which obtained the order. It merely suggests that the timely deposit relieves from the payment of interest.
In view of the facts stated above, we hold that Pacific is not exempt from compliance with the terms of the order to secure effectiveness of August 28, 1956, entered in civil case C.S.-53-1737, and that, therefore, it is liable to American for the sum of $960 and interest thereon, without prejudice
Judgment will be entered reversing the order appealed from and remanding the case for further proceedings not inconsistent with this opinion, and, further, the appellee is ordered to pay the sum of $500 for attorneys’s fees.
The balance of $608.27 was paid to the other plaintiff, Fernando Barnés, for the damages caused to his vehicle. The court assessed the total damages at $1,960, but the American paid $1,351.73 to Barnés under a collision policy which it had issued in favor of the latter. It therefore subrogated itself in the cause of action up to that amount.
The order to secure effectiveness, copied verbatim, reads as follows:
“Having examined the motion of American Insurance Co. of Newark, New Jersey, requesting an order to secure the effectiveness of the judgment entered in this case on April 22, 1956 [sic] against Ramón Ruiz, up to the sum of $960 plus $85 for legal interest thereon, and having examined the said judgment, which is final and conclusive, the court hereby consents and decrees the effectiveness of the judgment rendered in favor of American Insurance Co. of Newark, New Jersey, on any right, title, or interest which Ramón Ruiz has or may have in policy No. 62-11203 issued by ‘Pacific Fire Insurance Co.,’ represented by ‘Insular Underwriters Corp.,’ up to the sum of $960 plus $85 for legal interest thereon, without having to give bond as such obligation appears on an authentic document.
“It is ordered that ‘Insular Underwriters Corp.,’ its agents, or officers withhold in their possession any sum of money up to the aforesaid .amount.”
The writ served on Pacific was confined to copying the order to secure effectiveness, but the writ served on Ruiz reads as follows:
“You ARE hereby NOTIFIED that in compliance with a writ of attachment issued by the Hon. Superior Court of Puerto Rico, Ponce Part, and in order to secure the effectiveness of the judgment entered in this ease on April 22, 1956 [sic] the following has been attached as your property:
'Any right, title, or interest which you have or may have in policy No. 62-11203 issued by “Pacific Fire Insurance Co.,” represented by Insular Underwriters Corp., up to the sum of $960 plus $85 for legal interest on this sum.’
“You are warned that you can not sell or alienate or assign any right or interest which you may have in the said policy, and that if you do so the presumption will be that such alienation or assignment is fraudulent for all legal purposes, and also that all persons responsible therefor may be punished for contempt.”
The check referred to was not attached to the motion, but was delivered to Ruiz’s attorney. The attorney for Commercial stated that . . that same day the plaintiff followed me to the plane and wanted his ■check” (Tr. Ev. 4), and prior thereto he had said that “. . . he (Ruiz’s .attorney) refused to compromise if that sum was going to be attached.”
The said letter, copied verbatim, reads as follows:
“I received today the writ of attachment in the matter mentioned in the above-entitled case. From this writ I learn that the order of the court is directed to 'Pacific Fire Insurance Company, its agents, or officers.’ Since our case is directed against Commercial Insurance Company, I believe that you will have no responsibility in the event a compromise is made in the above-entitled case under our consideration, since, briefly, there is no order directed to Commercial Insurance Company.
“In view of the situation described, I would appreciate your taking steps to close this matter definitively. If this is not possible, I urge you to obtain an answer to the complaint in order that we may proceed with the case, for my client is interested in expediting the same.”
Case-law data current through December 31, 2025. Source: CourtListener bulk data.