Perez v. Fernandez

Background

This case involves two private individuals in Puerto Rico who litigated over damages for the seizure of property under an attachment. The suit was tried in the United States District Court for Puerto Rico as if it were a common-law action for maliciously issuing an attachment. Counsel and the Court examined whether such a common-law action existed under Puerto Rican law at the time the attachment was taken.

Reasoning

The Court focused on the Foraker Act, which kept local Puerto Rican laws in force unless they conflicted with U.S. statutes. It examined the Puerto Rican Civil Code and Code of Civil Procedure provisions governing attachments (articles 1395–1415 and related sections). The Court concluded those statutes created a specific procedure to vacate wrongful attachments and to assess damages in the attachment proceeding itself. Because the code provided that exclusive method, the Court held a separate English-style common-law suit for malicious attachment was not recognized under Puerto Rican procedure. The federal district court, exercising the jurisdiction of a Circuit Court, must follow the local attachment practice and could not entertain the common-law action.

Real world impact

The Court reversed the judgment, ruling the earlier federal trial was void for lack of jurisdiction to hear a suit not recognized by local law. The ruling means federal courts in Puerto Rico must apply the island’s statutory attachment remedies where those remedies are available, and separate common-law malicious-attachment suits are barred when the code supplies the exclusive remedy.

Dissents or concurrances

Justice White dissented, arguing the point was not preserved below and that, at most, the issue involved procedure rather than a jurisdictional defect, a view joined by Justice McKenna.