Ruiz v. Economics Laboratory, Inc., Civ. No. 400-67.

CourtU.S. District Court — District of Puerto Rico
Writing for the CourtO'Neil & Borges, San Juan, P. R., for defendants
Citation274 F. Supp. 14
Docket NumberCiv. No. 400-67.
Decision Date05 October 1967
PartiesCarlos M. RUIZ, d/b/a A. Alemany Caubet, Sucrs., Plaintiff, v. ECONOMICS LABORATORY, INC. and Soilax International, C. A., Defendants.

274 F. Supp. 14

Carlos M. RUIZ, d/b/a A. Alemany Caubet, Sucrs., Plaintiff,
v.
ECONOMICS LABORATORY, INC. and Soilax International, C. A., Defendants.

Civ. No. 400-67.

United States District Court D. Puerto Rico.

October 5, 1967.


274 F. Supp. 15

McConnie, Canales & Ferrer, San Juan, P. R., for plaintiff.

O'Neil & Borges, San Juan, P. R., for defendants.

MEMORANDUM AND ORDER

CANCIO, Chief Judge.

Defendants have moved to dismiss the complaint herein, alleging that:

The Dealer's Act (Law number 75, approved on June 24, 1964, as amended, 10 L.P.R.A. § 278 et seq.) is void and unconstitutional: (a) because it is an arbitrary exercise of the police power of the Commonwealth of Puerto Rico; (b) because it cannot be applied to contracts which were in existence prior to the effective date of the law; (c) because it violates the due process clause in that it sets up vague, indefinite and uncertain standards so that men of common intelligence must guess at its meaning; (d) because it violates equal protection of the laws since it is class legislation protecting existing dealers only; and denies to newcomers the opportunity

274 F. Supp. 16
to contract or attempt to contract with manufacturers in Puerto Rico; (e) because it denies freedom of contract; (f) because it forces violations of Federal and local anti-trust legislation; (g) because it imposes burdens on manufacturers who are using distributors in Puerto Rico on the date of the adoption of the Law and its various amendments, not imposed on other manufacturers who distribute directly in Puerto Rico to (sic) their own employees; (h) because the law contains no requirement that the parties act in good faith with the consuming public

Counsel for both parties having submitted extensive memoranda in support of their respective contentions, the Court hereby denies defendants' motion, on the following grounds:

Points (a) and (h)—The allegation that the Dealer's Act is an arbitrary exercise of the police power of the Commonwealth of Puerto Rico has been previously raised before this Court in United Medical Equipment Corp. v. S. Blickman, Inc., 260 F.Supp. 912 (1966) and was expressly denied (see 260 F. Supp. at p. 913) on the authority of the holding in Volkswagen Interamericana S. A. v. Rohlsen (1 Cir. 1966) 360 F.2d 437.

In the Volkswagen Interamericana case, the Court of Appeals, referring to the Federal Dealer's Act, answered the allegation as follows (p. 444):

"Defendant next contends that the Dealers' Act `is unconstitutional both by virtue of its arbitrary distinctions unrelated to the public interest and because of the vagueness of the standard of conduct which it purports to legislate.'
Defendant cites no cases in support of its first argument and we doubt that it could find substantial support in any case decided within, at least, the last quarter century. The legislation was enacted in the context of committee findings of widespread abuse by automobile manufacturers of their franchised dealers. H.R.Rep. No. 2850, 84th Cong., 2d Sess. (1956); S.Rep. No. 2073, 84th Cong., 2d Sess. (1956), U.S. Code of Congressional and Administrative News 1956, p. 4596. It is clearly responsive to this problem, and not only gives protection to the approximately 40,000 franchised automobile dealers in the United States —a sufficient "public purpose" in itself —but could be found to redound to the ultimate benefit of the public at large. See 102 Cong.Rec. 4848, 7482 (1956)".

The reasonings underlying this...

To continue reading

Request your trial
5 practice notes
  • Southwest Distributing Co. v. Olympia Brewing Co., No. 10802
    • United States
    • New Mexico Supreme Court of New Mexico
    • June 27, 1977
    ...(1966), must give way. Cf. California v. LaRue, 409 U.S. 109, 93 S.Ct. 390, 34 L.Ed.2d 342 (1972); Ruiz v. Economics Laboratory, Inc., 274 F.Supp. 14 (D.C.P.R.1967). I From its early absolute character, see Sturges v. Crowninshield, 17 U.S. (4 Wheat.) 122, 4 L.Ed. 529 (1819), Dartmouth Coll......
  • Fornaris v. Ridge Tool Co., No. 7422.
    • United States
    • U.S. Court of Appeals — First Circuit
    • March 17, 1970
    ...and other defenses. The court resolved these defenses in the plaintiff's favor in Ruiz v. Economics Laboratory, Inc., D.P.R., 1967, 274 F.Supp. 14, and in the defendant's favor, in a more limited situation, in United Medical Equipment Corp. v. S. Blickman, Inc., D.P.R., 1966, 260 F. Supp. 9......
  • Anderson's Vehicle Sales, Inc. v. Omc-Lincoln, OMC-LINCOLN
    • United States
    • Court of Appeal of Michigan (US)
    • November 5, 1979
    ...this view is not unanimous; E. g., Shell Oil Co. v. Marinello, 63 N.J. 402, 307 A.2d 598 (1973), Ruiz v. Economics Laboratory, Inc., 274 F.Supp. 14 (D.Puerto Rico, 1967), Superior Motors, Inc. v. Winnebago Industries, Inc., 359 F.Supp. 773 (D.S.C., 1973), Willys Motors, Inc. v. Northwest Ka......
  • Panamerican Pharmaceutical v. Sherman Laboratories, Civ. A. No. 675-68.
    • United States
    • U.S. District Court — District of Puerto Rico
    • December 10, 1968
    ...Cir. 1968); La Electrónica, Inc. v. Electric Storage Battery Co., 260 F. Supp. 915 (D.C.P.R.1966); Ruíz v. Economics Laboratory Inc., 274 F.Supp. 14 (D.C.P.R.1967); Executive Air Services, Inc. v. Beech Aircraft Corporation, 254 F.Supp. 415 (D.C.P.R.1966); Felix A. Rodríguez, Inc. v. Bristo......
  • Request a trial to view additional results
5 cases
  • Southwest Distributing Co. v. Olympia Brewing Co., No. 10802
    • United States
    • New Mexico Supreme Court of New Mexico
    • June 27, 1977
    ...(1966), must give way. Cf. California v. LaRue, 409 U.S. 109, 93 S.Ct. 390, 34 L.Ed.2d 342 (1972); Ruiz v. Economics Laboratory, Inc., 274 F.Supp. 14 (D.C.P.R.1967). I From its early absolute character, see Sturges v. Crowninshield, 17 U.S. (4 Wheat.) 122, 4 L.Ed. 529 (1819), Dartmouth Coll......
  • Fornaris v. Ridge Tool Co., No. 7422.
    • United States
    • U.S. Court of Appeals — First Circuit
    • March 17, 1970
    ...and other defenses. The court resolved these defenses in the plaintiff's favor in Ruiz v. Economics Laboratory, Inc., D.P.R., 1967, 274 F.Supp. 14, and in the defendant's favor, in a more limited situation, in United Medical Equipment Corp. v. S. Blickman, Inc., D.P.R., 1966, 260 F. Supp. 9......
  • Anderson's Vehicle Sales, Inc. v. Omc-Lincoln, OMC-LINCOLN
    • United States
    • Court of Appeal of Michigan (US)
    • November 5, 1979
    ...this view is not unanimous; E. g., Shell Oil Co. v. Marinello, 63 N.J. 402, 307 A.2d 598 (1973), Ruiz v. Economics Laboratory, Inc., 274 F.Supp. 14 (D.Puerto Rico, 1967), Superior Motors, Inc. v. Winnebago Industries, Inc., 359 F.Supp. 773 (D.S.C., 1973), Willys Motors, Inc. v. Northwest Ka......
  • Panamerican Pharmaceutical v. Sherman Laboratories, Civ. A. No. 675-68.
    • United States
    • U.S. District Court — District of Puerto Rico
    • December 10, 1968
    ...Cir. 1968); La Electrónica, Inc. v. Electric Storage Battery Co., 260 F. Supp. 915 (D.C.P.R.1966); Ruíz v. Economics Laboratory Inc., 274 F.Supp. 14 (D.C.P.R.1967); Executive Air Services, Inc. v. Beech Aircraft Corporation, 254 F.Supp. 415 (D.C.P.R.1966); Felix A. Rodríguez, Inc. v. Bristo......
  • Request a trial to view additional results

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT