[Download] "Fornaris v. Ridge Tool Co." by United States Court of Appeals for the First Circuit # eBook PDF Kindle ePub Free
eBook details
- Title: Fornaris v. Ridge Tool Co.
- Author : United States Court of Appeals for the First Circuit
- Release Date : January 17, 1970
- Genre: Law,Books,Professional & Technical,
- Pages : * pages
- Size : 61 KB
Description
ALDRICH, Chief Judge. On June 24, 1964 the Puerto Rico legislature enacted the so-called Dealer's Contract Law known as Law 75. 1964 Laws of Puerto Rico, 4th Sess., at 231 (approved June 24, 1964). Its exact terms we will come to presently, but in effect this statute provided that a Puerto Rico dealer's contract with a ""principal,"" hereinafter manufacturer, regardless of its provisions for termination was, with certain exceptions, renewable indefinitely at the option of the dealer, and imposed substantial damages upon a manufacturer who refused to accede. On June 23, 1966 the scope of the obligation was enlarged to forbid the manufacturer from performing, irrespective of the provisions of the contract, ""any act detrimental to the established relationship."" 10 L.P.R.A. § 278a (1968 supp.). In spite of this legislation a number of manufacturers acted to terminate or otherwise change their dealers' agreements, and much litigation has ensued. Because of diversity of citizenship the bulk, apparently, of the cases were removed to the district court, where the defendants raised constitutional 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. 912. In the Blickman case the plaintiff appealed, and because of the great importance of the legislation we issued a general invitation for amicus briefs. Many were filed. We specially invited the Commonwealth to brief and argue the question of constitutionality, which it graciously did.