Javelin Investment, S.A. v. Municipality of Ponce
Javelin Investment, S.A. v. Municipality of Ponce
Opinion of the Court
Javelin Investment, S.A., sued the Municipality of Ponce and the Junta Administra-tiva, Muelles Municipales de Ponce
The basic facts are undisputed. In the early part of 1976 Javelin entered into an agreement with the Rico Chemical Company to purchase from it large amounts of the chemical for investment purposes. Because the market price of this product was low, Javelin sought, with the assistance of an employee of Rico Chemical, a suitable storage location within the vicinity of Ponce, Puerto Rico. A warehouse owned by the Municipality and operated by the Board proved to be the most desirable and convenient location. In the latter part of June 1976 a meeting was had between Harry K. Eldon, an agent for Javelin, and Aldio Alvarado, the superintendent of the Municipal Docks, to discuss the availability of space at this warehouse and the applicable rates. Alvarado was at first unsure of what storage rate would apply and quoted the normal demurrage rate. Eldon informed him that this rate was not competitive. However, they agreed to meet the next day and ended their discussion with Alvarado indicating that he would look into the possibility of setting a more agreeable rate. When they met the next day Alvarado mentioned that the warehouse could be leased at the same rate for which sugar was stored — two cents per one hundred pounds for fifteen days. This rate was accepted by Eldon. The only condition set by Alvarado at this time was to the effect that he would need to have some type of confirmation from the Board. No specific length of time was set on the agreement but Eldon told Alvarado that while there was a likelihood the chemical would be sold within six months, it might have to be stored for ten or twelve months. This second meeting ended with Alvarado stating that he would inform Eldon if the confirmation could be had. None of the specifics of this second meeting were ever reduced to writing. A short time later Alvarado informed the same employee of Rico Chemical who had assisted Javelin in finding the warehouse that the storage agreement had been confirmed; the employee in turn notified Eldon. The first loads began arriving at the warehouse in July 1976. For the next six months Javelin was billed and made payments at the agreed rate without any significant difficulty-
In February 1977, after the appointment of a new Board and Superintendent, Hector M. Leon, Javelin was informed that the rates being paid for the storage were inadequate and that new rates would become effective immediately. When Javelin ob
Appellants raise several issues on appeal: (1) that the jury erred in finding the existence of a contract because Alvarado had no legal authority to contract in the name of the Board and no evidence was presented that the Board had ratified Alvarado’s action; (2) that any contract which did exist was contrary to law
We find the first two issues not properly preserved for appellate review. Accepting appellants’ statement as to the applicable law, namely, that Alvarado’s agreement required ratification by the Board and that section 16 is applicable, both issues concern claims that the evidence was insufficient as a matter of law to allow recovery. Under the first issue the question is whether plaintiff’s evidence was sufficient to find that the Board had ratified the agreement. Under the second issue the question is whether the evidence was sufficient to overcome the proscriptions of section 16. Both arguments should have first been presented to the district court by a motion for a directed verdict. The failure to do so barred consideration of this claim in a post verdict motion for judgment n.o.v. Rule 50(b), Fed.R.Civ.P. It now precludes consideration of such a claim on appeal. Martinez Moil v. Levitt & Sons of Puerto Rico, Inc., 583 F.2d 565, 568 (1st Cir. 1978); LaForest v. Autoridad de Las Fuentes Fluviales, 536 F.2d 443, 445 (1st Cir. 1976); Gillentine v. McKeand, 426 F.2d 717, 722-23 (1st Cir. 1970); 5A Moore’s Federal Practice 1 50.08 (2 ed. 1980). We note, moreover, that appellants do not here claim that the jury was wrongly instructed on the law nor
Appellants next contend that it was error to award damages in this case because none were proven, the award was based on erroneously admitted evidence and the demur-rage charge was properly imposed. The jury’s original verdict awarded plaintiff $120,000. As a consequence of appellants’ motion for a new trial the district court reduced this award to $78,571.18, and this reduction was accepted by plaintiff on re-mittitur. The district court arrived at this figure by allowing as proven damages only that amount charged for storage which was in excess of the original verbal agreement ($40,814.18), and the difference between the price originally paid for the poly vinyl chloride and the price for which it was ultimately sold ($37,757.00). Appellants’ motion for a new trial appropriately preserved its complaint as to the excessive award of damages. See LaForest v. Autoridad de Las Fuentes Fluviales, supra at 446.
We do not agree with these contentions. Assuming, as we must, that plaintiff established the existence of a valid contract, we cannot say the amount of damages, as reduced on remittitur, are excessive. See LaForest v. Autoridad de Las Fuentes Fluviales, supra at 447. The evidence presented was sufficient to establish that the breach of the agreement resulted in the premature sale of the product and that this caused a loss on the investment. This evidence clearly established the initial purchase price of the product (which was below the market price then prevailing); the little change in the market price during the period between the date plaintiff delivered the first loads to the warehouse and the date it was notified of the increased rates; and most important, that a short time after the product was sold, but stiil within the maximum twelve month period discussed, the market price went up approximately two cents a pound.
The judgment of the district court is affirmed and the request for certification is denied.
. The Junta Administrativa, Muelles Munici-pales de Ponce [Administrative Board, Municipal Docks of Ponce] (hereinafter “Board”) is charged with managing, operating and conserving the Ponce Municipal Docks. It is an entity distinct and separate from the Municipality.
. Appellants contend that section 16 of the Dock and Harbor Law of Puerto Rico, 23 Laws of P.R.Ann. § 396 (1979 Supp.) is applicable to this case. This statute provides in part:
The owners, lessees, or manager of any pier, wharf, or bulkhead, shall not be permitted to use them for the permanent storage of goods, merchandise, cargo or material of any kind which may be discharged or placed for loading. Every structure of this character is designed for the protection of merchandise or to expedite its loading and unloading in transit, and all cargo deposited therein shall be removed within the five (5) working days following the date on which same was discharged or placed for loading.
Provided, that in the case of piers, wharves or bulkheads the property of the Ports Authority, said Authority, for just cause, as determined by the Economic Development Administrator, and in the case of piers, wharves or bulkheads which are operating as public service enterprises or the property of the municipality of Ponce, the operator of the public service pier or the Superintendent of the pier of Ponce, respectively, may, for just cause as determined by the Public Service Commission of Puerto Rico, extend the time and permit in cases of necessity the storage in not over one-fourth of the space covered or not occupied by streets or means of communications. In the case of piers, wharves or bulkheads the property of or operated by private enterprises or property of the municipality of Ponce, there shall be charged for the delay incurred in removing the cargo or merchandise a tariff that shall be fixed by the Public Service Commission and in the case of piers, wharves or bulkheads the property of the Ports Authority a tariff that shall be fixed by the Economic Development Administrator. In either case the amount of the tariff shall constitute a lien on the merchandise, goods, cargo or material the object of the delay.
. Since appellants’ procedural shortcoming below prevents them from raising the question of whether or not section 16 is a legal bar to recovery, we of course, have no reason to consider certifying that or any related question to the Supreme Court of Puerto Rico.
. This would be equivalent to an increase of approximately $40,000 figured on the overall amount. It can, thus be inferred that had plaintiff been allowed to keep the chemical in storage for the balance of the period, it would have been able to sell at a price above that which it purchased it for, rather than at a $37,757 loss.
. Rule 1006 provides: “The contents of voluminous writings, recordings or photographs which cannot conveniently be examined in court may be presented in the form of a chart, summary, or calculation. The originals, or duplicates, shall be made available for examination or copying, or both, by other parties at a reasonable time and place. The court may order that they be produced in court.”
Reference
- Full Case Name
- JAVELIN INVESTMENT, S.A. v. MUNICIPALITY OF PONCE, Junta Administrativa, Muelles Municipales De Ponce, Appellee JAVELIN INVESTMENT, S.A. v. MUNICIPALITY OF PONCE, Junta Administrativa, Muelles Municipales De Ponce
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- 5 cases
- Status
- Published