LEVIN H. CAMPBELL, Circuit Judge.
Levitt & Sons of Puerto Rico, Inc. (Levitt-Puerto Rico) appeals from a judgment for $357,000 in a diversity action brought against it by plaintiffs-appellees Jose M. Martinez Moll and Inez Cartagena Latorre. Central to plaintiffs' case was section 3374 of the Civil Code of Puerto Rico, which provides in pertinent part:
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