Puerto Rico Farm Credit, ACA v. Ruiz-Valentin et al, No. 3:2009cv01348 - Document 47 (D.P.R. 2011)

Court Description: OPINION AND ORDER - GRANTING Plaintiff's 22 Motion for Summary Judgment. Signed by Judge Carmen C. Cerezo on 5/31/2011. (mmd)

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IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF PUERTO RICO PUERTO RICO FARM CREDIT, ACA Plaintiff vs CIVIL 09-1348CCC EDUARDO RUIZ-VALENTIN, his wife REYES NORIEGA-RAMOS and the conjugal partnership constituted by them; JUAN RUIZ-VALENTIN, his wife GUMERSINDA RIVERA-MONTALVO and the conjugal partnership constituted by them Defendants OPINION AND ORDER On April 15, 2009, plaintiff Puerto Rico Farm Credit, ACA ( PRFC ) filed the Complaint (docket entry 1) in the instant case against defendants Eduardo Ruiz ValentÃn, Reyes Noriega Ramos, their conjugal partnership, Juan Ruiz ValentÃn, Gumersinda Rivera Montalvo and their conjugal partnership, alleging that defendants had defaulted on their loan obligation to plaintiff and requesting that the Court condemn defendants to pay the full amount of the balance of the loan and decree the public sales of real estate properties mortgaged to guarantee the same. The defendants filed their Answer to the Complaint (docket entry 19) on July 29, 2009. On October 21, 2009, plaintiff filed a Motion for Summary Judgment (docket entry 22), to which defendants opposed on November 30, 2009 (docket entry 28). While defendants admitted in their opposition owing the amount which plaintiff was seeking to collect and having constituted mortgages to guarantee its payment, they claimed that those mortgages could not be executed since they had still not been registered at the Registry of Property. Thus, the only issue that the Court had to resolve was whether the creditor could seek foreclosure of the mortgages in its favor since the deeds in which they were constituted, CIVIL 09-1348CCC 2 although presented to the Registry of Property of the Commonwealth of Puerto Rico, had not yet been qualified and recorded in said Registry. Because that issue had not been addressed by the Puerto Rico Supreme Court (Supreme Court), on May 21, 2010 the Court certified that question to it pursuant to Rule 25 of the Rules of the Supreme Court of Puerto Rico. The Supreme Court, through an Order dated June 28, 2010, issued a Writ of Certification, after which the parties filed their respective briefs. While the matter was under advisement before the Supreme Court, however, the Legislature of Puerto Rico enacted Law No. 216 of December 27, 2010 ( Law 216 ) entitled Law To Make Agile The Registry of Property, which became effective on February 10, 2011. Article 2 of Law 216 establishes that every document presented in the Registry of Property as of April 30, 2010 is recorded. The Supreme Court then issued an Order for the parties to state their positions regarding the effect that the adoption of Law 216 would have on the issue certified. Plaintiff filed a motion stating that, pursuant to Law 216, all the mortgages object of the present case had been duly recorded in the Registry of Property and that said fact rendered moot the question certified before the Supreme Court. Consequently, on April 15, 2011, the Supreme Court entered a Resolution annulling the Writ of Certification previously issued upon its finding that the answer to the question certified would have no practical effect over the present case since the impediment for the foreclosure of the mortgages had vanished. The Supreme Court considered that the certification requested had turned moot and that in light of the changed circumstances an answer to the certified question would require the issuance of an advisory opinion. Thus, the legal argument against foreclosure which had been raised by defendants in their opposition to the summary judgment motion has been dispelled by the effects of Law 216. We again note that defendants, in said opposition, have accepted the amount due to the plaintiff, the fact that they signed the Deeds of Mortgage and the validity of the Title CIVIL 09-1348CCC 3 Searches submitted as exhibits in support of plaintiff s motion for summary judgment. We have also considered, and now adopt, the Statement Of Uncontested Facts submitted by plaintiff in support of his Motion, all of which are supported by a record citation as required by Local Rule Civil Procedure Rule 56(e) of the Local Rules of the United States District Court for the District of Puerto Rico, and given that defendants failed to submit with their Opposition a separate statement of material facts to admit, deny or qualify the moving party s statement of material facts, as also required by Rule 56(e). Those uncontested facts establish that: 1. On June 30, 2008, defendants Eduardo Ruiz ValentÃn and Reyes Noriega Ramos subscribed a Promissory Note in the principal amount of $2,940,150.00, with interest at the rate of 5.00% per annum, payable to the order of the Puerto Rico Farm Credit, ACA in the following manner: A. On January 1, 2009 an installment of the interests accrued up to that date. B. On June 1, 2009, a final installment for the balance of principal amount owed, interest accrued and any other charges. Said note was subscribed before Notary Public Carlos Tomassini RamÃrez, Affidavit Number 9,982. 2. Through a document executed on June 30, 2008 before Notary Carlos Tomassini RamÃrez, affidavit no. 9,985, defendants Eduardo Ruiz ValentÃn, Reyes Noriega Ramos, Juan Ruiz ValentÃn and Gumersinda Rivera Montalvo delivered to PRFC as guarantee of the payment of the loan represented by the Promissory Note the following: A. Mortgage Note subscribed by defendants Eduardo Ruiz ValentÃn, Reyes Noriega Ramos, Juan Ruiz ValentÃn and Gumersinda Rivera Montalvo on January 22, 2007 for the principal amount of $3,000,000.00, with interest at the rate of 7.25% per annum, which interest rate could be increased or lowered according to the provisions of the Promissory Note executed on June 30, 2008, payable to the Puerto Rico Farm Credit, ACA On Demand. That defendants Eduardo Ruiz ValentÃn, Reyes Noriega Ramos, Juan Ruiz ValentÃn and Gumersinda Rivera Montalvo guaranteed the payment of the Mortgage Note, plus credits for CIVIL 09-1348CCC 4 interest, costs, expenses and attorneys fees in the event of foreclosure and other credits, with a mortgage constituted pursuant to Deed Number 6 of Voluntary Mortgage, executed before Notary Public Carlos Tomassini RamÃrez, on January 22, 2007, hereinafter referred to as the "Deed of Mortgage," which mortgage encumbers the real estate properties that are described hereafter in the Spanish language and which are recorded respectively as follows: PROPERTY A ---A) RUSTICA: Parcela nÃºmero ochenta y uno (81) radicada en el Barrio BoquerÃ³n del tÃ©rmino municipal de Cabo Rojo, Puerto Rico, con una cabida superficial de CINCO CUERDAS (5.00 CDAS.), equivalentes a una (1) hectÃ¡rea, noventa y seis (96) Ã¡reas y sesenta (60) centiÃ¡reas. En lindes por el NORTE, con el Mar Caribe; por el SUR, con servidumbre de paso de diez (10.00) metros de ancho; por el ESTE, con la parcela nÃºmero sesenta y nueve (69) y por el OESTE, con la parcela nÃºmero ochenta (80). Esta parcela es para uso de fines agrÃcolas. The mortgage that is being foreclosed herein, that encumbers this property was presented on February 8, 2007 at entry 154 of volume 753 of the Day Book, property number 18721, Registry of Property, San GermÃ¡n Section. PROPERTY B ---B) RUSTICA: Parcela nÃºmero sesenta y nueve (69) radicada en el Barrio BoquerÃ³n del tÃ©rmino municipal de Cabo Rojo, Puerto Rico, con una cabida superficial de CINCO CUERDAS (5.00 CDAS.), equivalentes a una (1) hectÃ¡rea, noventa y seis (96) Ã¡reas y sesenta (60) centiÃ¡reas. En lindes por el NORTE, con el Mar Caribe; por el SUR, con servidumbre de paso de diez (10.00) metros de ancho; por el ESTE, con la parcela nÃºmero sesenta (70) y servidumbre de paso de diez (10.00) metros de ancho y por el OESTE, con la parcela nÃºmero ochenta y uno (81). Esta parcela es para uso de fines agrÃcolas. The mortgage that is being foreclosed herein, that encumbers this property was presented on February 8, 2007 at entry 154 of volume 753 of the Day Book, property number 18715, Registry of Property, San GermÃ¡n Section. PROPERTY C ---C) RUSTICA: Parcela nÃºmero setenta (70) radicada en el Barrio BoquerÃ³n del tÃ©rmino municipal de Cabo Rojo, Puerto Rico, con una cabida superficial de CINCO CUERDAS (5.00 CDAS.), equivalentes a una (1) hectÃ¡rea, noventa y seis (96) Ã¡reas y sesenta (60) centiÃ¡reas. En lindes por el NORTE, con el Mar Caribe; por el SUR, con servidumbre de paso de diez CIVIL 09-1348CCC 5 (10.00) metros de ancho; por el ESTE, con la parcela nÃºmero setenta y uno (71) y por el OESTE, con la parcela nÃºmero sesenta y nueve (69). ---Esta parcela es para uso de fines agrÃcolas. The mortgage that is being foreclosed herein, that encumbers this property was presented on February 8, 2007 at entry 154 of volume 753 of the Day Book, property number 18716, Registry of Property, San GermÃ¡n Section. PROPERTY D ---D) RUSTICA: Parcela nÃºmero setenta y tres (73), radicada en el Barrio BoquerÃ³n del tÃ©rmino municipal de Cabo Rojo, Puerto Rico, con una cabida superficial de CINCO CUERDAS (5.00 CDAS.), equivalentes a una (1) hectÃ¡rea, noventa y seis (96) Ã¡reas y sesenta (60) centiÃ¡reas. En lindes por el NORTE, con las parcelas nÃºmero setenta y uno (71) y setenta y dos (72) y servidumbre de paso de diez (10.00) metros de ancho; por el SUR, con la parcela nÃºmero sesenta y cinco (65); por el ESTE, con la parcela nÃºmero treinta y siete (37) y por el OESTE, con la parcela nÃºmero sesenta y ocho (68) y servidumbre de paso de diez (10.00) metros de ancho. ---Esta parcela es para uso de fines agrÃcolas. The mortgage that is being foreclosed herein, that encumbers this property was presented on February 8, 2007 at entry 154 of volume 753 of the Day Book, property number 18719, Registry of Property, San GermÃ¡n Section. PROPERTY E ---E) RUSTICA: Compuesta de SETENTA Y CUATRO CUERDAS CON SIETE MIL DOSCIENTOS OCHENTA Y CINCO DIEZMILESIMAS DE OTRA (74.7285 CDAS.), equivalentes a veintinueve (29) hectÃ¡reas, treinta y siete (37) Ã¡reas, doce (12) centiÃ¡reas y ochenta y nueve (89) miliÃ¡reas, radicada en el Barrio AÃ±asco Abajo del tÃ©rmino municipal de AÃ±asco, Puerto Rico. Colinda por el NORTE, en cuatro alineaciones que suman doscientos cincuenta y tres punto sesenta y cinco (253.65) metros, con un caÃ±o que lo separa de terrenos de la SucesiÃ³n IÃ±igo; por el SUR, en trescientos cincuenta y seis punto sesenta y ocho (356.68) metros, con la Antigua VÃa FÃ©rrea de la American Railroad Company y en ocho (8) alineaciones que suman trescientos veintitrÃ©s punto sesenta (323.60) metros, con terrenos de Francisco Lugo Lugo; por el ESTE, en seiscientos setenta y cuatro punto dieciocho (674.18) metros, con la carretera ciento quince (115) y en ciento noventa y dos punto cuarenta y cinco (192.45) metros, con la carretera nÃºmero dos (2) y por el OESTE, en trescientos noventa y ocho punto treinta y uno (398.31) metros, con terrenos de la SucesiÃ³n Bianchi, en una alineaciÃ³n discontinua de la anterior de veintidÃ³s punto setenta y uno (22.71) metros, con un caÃ±o y en trescientos sesenta y cuatro punto cuarenta (364.40) metros, con terrenos de la SucesiÃ³n IÃ±igo y otros de Francisco Lugo Lugo. CIVIL 09-1348CCC 6 --De la cabida de esta finca se efectuÃ³ una segregaciÃ³n de cuatro mil ochocientos veintiuno punto noventa y uno (4,821.91) metros cuadrados, que pasÃ³ a formar la finca once mil ciento quince (11,115) de AÃ±asco, inscrita al tomo del sistema de folio mÃ³vil a favor de la Autoridad de Carreteras y TransportaciÃ³n de Puerto Rico. --No se describe remanente luego de efectuadas dichas segregaciones.-----The mortgage that is being foreclosed herein, that encumbers this property was presented on February 8, 2007 at entry 599 of volume 732 of the Day Book, property number 8,748, Registry of Property, MayagÃ¼ez Section. PROPERTY F ---F) RUSTICA: Predio de terreno propio para caÃ±as en el sitio Las MarÃas del Barrio AÃ±asco Abajo del tÃ©rmino municipal de AÃ±asco, Puerto Rico, compuesta de DIEZ CUERDAS CON OCHENTA CENTÃ SIMAS DE OTRA (10.80 CDAS.), segÃºn el plano de dicha finca levantado en marzo cinco (5) de mil novecientos treinta y uno (1931), por Rafael Bofill, colindando por el NORTE, desde el punto nÃºmero uno (1) hasta el punto nÃºmero dos (2) de dicho plano en una extensiÃ³n de quinientos sesenta y tres (563.00) metros, con terrenos de Virginia Pesante, hoy SucesiÃ³n de Antonia Goyco de IÃ±igo; colindante por el SUR,desde el punto nÃºmero tres (3) hasta el punto nÃºmero cuatro (4) de dicho plano en una extensiÃ³n de seiscientos treinta y cuatro punto cincuenta (634.50) metros, con terrenos de Virginia Pesante hoy SucesiÃ³n de Antonio Goyco de IÃ±igo; colindante por el ESTE, desde el punto nÃºmero dos (2) hasta el punto nÃºmero tres (3) de dicho plano en una extensiÃ³n de setenta y uno punto ochenta (71.80) metros, con terrenos de Pedro Vidal; colindante por el OESTE, desde el punto nÃºmero cuatro (4) hasta el punto nÃºmero cinco (5) de dicho plano en un Ã¡ngulo de cincuenta y cuatro (54) grados en una extensiÃ³n de (no se puede determinar ya que el tomo esta deteriorado) dicho plano en un Ã¡ngulo de treinta (30) grados cero (0) minutos en una extensiÃ³n de diecinueve punto veinte (19.20) metros y desde el punto seis (6) hasta el punto nÃºmero uno (1) de dicho plano en un Ã¡ngulo de quince (15) grados treinta (30) minutos en una extensiÃ³n de treinta y tres (33.00) metros. Colindante en toda su totalidad de extensiÃ³n por el Oeste como antes se ha reseÃ±ado con el caÃ±o frÃo. El punto nÃºmero tres (3) de dicho plano se toma de la esquina Sureste de la finca y estÃ¡ al lado Norte del callejÃ³n que pasa desde la Carretera de AÃ±asco a RincÃ³n con propiedad de Pedro Vidal Santa MarÃa, desembocando en la esquina Sureste de dicha finca se toma el punto nÃºmero tres (3) antes mencionado. The mortgage that is being foreclosed herein, that encumbers this property was presented on February 8, 2007 at entry 599 of volume 732 of the Day Book, property number 1,736, Registry of Property, MayagÃ¼ez Section. PROPERTY G ---G) RUSTICA: Predio de terreno llano, dedicado a caÃ±as dulces, conocido con el nombre de finca Garrosi, situado en el Barrio AÃ±asco Abajo del tÃ©rmino municipal de AÃ±asco, Puerto Rico, con una cabida de CIENTO TRES CUERDAS CON OCHENTA Y NUEVE CENTÃ SIMAS DE OTRA CIVIL 09-1348CCC 7 (103.89 CDAS.), equivalentes a cuarenta (40) hectÃ¡reas, ochenta y tres (83) Ã¡reas y veintiocho (28) centiÃ¡reas, en colindancias por el ESTE, con terrenos de la SucesiÃ³n Juan JosÃ© Arcelay; por el NORTE, con SucesiÃ³n Urrutia y SucesiÃ³n Bianchi PagÃ¡n, divididas por el camino que conduce del pueblo a la playa de AÃ±asco; por el PONIENTE, con otros de doÃ±a Amalia Altieri de Cebollero, los de Justo Goicoevich y los de Manuel Antonio VÃ©lez y por el SUR, con el RÃo Grande de AÃ±asco, Puerto Rico. ---NOTA: En la inscripciÃ³n 27a, al folio 227vuelto, del tomo 36 de AÃ±asco, se expresa que esta finca fue mensurada y resultÃ³ tener dentro de sus mismos puntos y colindancias, una cabida de NOVENTA Y CUATRO CUERDAS CON NOVENTA Y CINCO CENTÃ SIMAS DE OTRA (94.95 5CDAS.), pero la misma no se acreditÃ³. The mortgage that is being foreclosed herein, that encumbers this property was presented on February 8, 2007 at entry 599 of volume 732 of the Day Book, property number 508, Registry of Property, MayagÃ¼ez Section. PROPERTY H ---H) RUSTICA: Parcela de terreno denominada C de configuraciÃ³n aproximadamente triangular con un Ã¡rea superficial de TREINTA Y UNA CUERDAS CON MIL CUATROCIENTOS ONCE DIEZMILESIMAS DE OTRA (31.1411 CDAS.), equivalentes a ciento veintidÃ³s mil trescientos noventa y seis punto ochocientos cinco (122,396.805) metros cuadrados. Colinda por el NORTE, con terrenos de Luis Carlo Aymat, tambiÃ©n conocido como Buddy Carlo; por el SURESTE, con terrenos de Luis Carlo Aymat, tambiÃ©n conocido como Buddy Carlo y hoy dÃa tambiÃ©n conocido como Punta Oeste Development, Inc.; por el SUROESTE, con la carretera estatal nÃºmero trescientos once (311) que separa esta parcela de terrenos de Wilda y HÃ©ctor Fajardo Roger; y por el SUR, en un punto con la carretera estatal nÃºmero trescientos once (311). ---Este terreno estÃ¡ ubicado en los Barrios Miradero y Bajura de Cabo Rojo, Puerto Rico. ---Esta finca se dedicarÃ¡ para fines agrÃcolas. The mortgage that is being foreclosed herein, that encumbers this property was presented on February 8, 2007 at entry 154 of volume 753 of the Day Book, property number 18891, Registry of Property, San GermÃ¡n Section. 3. That defendants Eduardo Ruiz ValentÃn, Reyes Noriega Ramos,Juan Ruiz ValentÃn and Gumersinda Rivera Montalvo agreed pursuant to the terms of the Mortgage Notes that in the event of default in the payment of the aforesaid indebtedness as the same became due, or any part thereof, or in the event of default in the performance of any of the terms, covenants or conditions of the mortgage securing its payment, the entire balance of the indebtedness CIVIL 09-1348CCC 8 could become immediately due and payable and that the mortgage could be foreclosed without notice to debtor.3 4. That defendants Eduardo Ruiz ValentÃn, Reyes Noriega Ramos, Juan Ruiz ValentÃn and Gumersinda Rivera Montalvo agreed pursuant to the terms of the Deeds of Mortgage to pay to the owner and holder of the Mortgage Notes an amount equal to 10% of its principal but not less than $500.00 as a fixed and liquid amount to cover the costs, expenses and attorneys fees in case of foreclosure or other judicial proceedings for the collection of the same, whereof the defendant is bound to pay to the plaintiff, the sum of $300,000.00 for such concept. 5. That defendant Eduardo Ruiz ValentÃn, Reyes Noriega Ramos, Juan Ruiz ValentÃn and Gumersinda Rivera Montalvo for value received, delivered the Mortgage Note to the Puerto Rico Farm Credit, ACA, who is the present owner and holder of the same. 6. That defendants are in default regarding the payment of the installments of the loan guaranteed by the mortgage in favor of the plaintiff. 7. That the following amounts have become due and payable and have not been paid by the defendants or by any other party on their behalf in spite of plaintiff's diligences: The sum of $2,940,135.63 of principal; plus $2,118.34 for late charges, plus $108,510.99 of accrued interest on principal as of April 8, 2009, plus interest on unmatured principal accruing thereafter at the rate 5.25 % per annum, equivalent to $422.8961 daily until the date of its full payment, plus the sum of $300,000.00 as a fixed and liquid amount for the costs, expenses and attorneys fees. Pursuant to Fed.R.Civ.P. 56(a), a summary judgment motion should be granted when "the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law. The moving party must demonstrate an absence of evidence to support the nonmoving party s case. See Celotex Corp. v. Catrett, 477 U.S. 317 (1986). CIVIL 09-1348CCC 9 As established by the uncontested facts and the admissions made by defendants in their Opposition, they executed a mortgage note and mortgage deeds to guarantee a loan issued by plaintiff, and subsequently defaulted on their payment obligations. Since defendants have breached their contractual obligations, and have not properly controverted plaintiff s allegations, the Court must grant summary judgment in plaintiff s favor. Accordingly, plaintiff s Motion for Summary Judgment (docket entry 22) is GRANTED. Judgment will be entered by separate Order. SO ORDERED. At San Juan, Puerto Rico, on May 31st, 2011. S/CARMEN CONSUELO CEREZO United States District Judge

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