Comisionado de Seguros de Puerto Rico v. Universal Insurance
187 P.R. 164
Supreme Court of Puerto Rico2012Background
- Universal Insurance licensed to operate in Puerto Rico; OCS investigated 1996–2001 for tariff/prima violations in condo property insurance
- OCS ordered Universal to cease improper pricing, pay fines, and reimburse affected insureds in 2002
- Universal sought an administrative hearing under the applicable insurance code provisions
- OCS moved for partial summary resolution; Universal opposed asserting factual dispute over prior tariff approval
- Administrative judge granted summary ruling, finding tariff violations and no valid deregulation without formal order/regulation
- Appellate court affirmed, holding former commissioner’s public statements did not create a new regulatory status and that deregulation required formal action; certiorari was granted and reconsidered to uphold the agency decision
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether acts propres barred by government doctrine apply here | Universal contends actoss propios prevents retroactive effect against the state | Garcia-era statements insufficient to suspend tariffs without formal action | No; acts propios limited against government; not controlling here |
| Whether summary proceeding was proper to resolve tariff violations | Universal argues factual disputes require a hearing | OCS's record shows no material factual dispute; sumaria appropriate | Proper to adjudicate via summary proceeding |
| Whether public statements by Garcia could deregulate tariffs | Public statements created appearance that deregulation already occurred | Only formal orders/regulations can deregulate tariffs | Not; deregulation required formal, notified action; statements insufficient |
Key Cases Cited
- Vivoni Farage v. Ortiz Carro, 179 D.P.R. 990 (2010) (doctrine of acts propios limited against the State; good faith reliance in certain contexts)
- Int. General Electric v. Concrete Builders, 104 D.P.R. 871 (1976) (venire contra factum propium non valet; acts propios protects reliance on representations)
- Morales v. Municipio de Toa Baja, 119 D.P.R. 682 (1987) (public policy and order public considerations bar equitable relief for public entities)
- J.R.T. v. Hosp. de La Concepción, 114 D.P.R. 372 (1983) (limits to application of acts propios against public authorities)