KLCE202400356
Tribunal De Apelaciones De Pue...Apr 29, 2024Background
- Triple-S issued a commercial property insurance policy to the Condominio Ocean Park for the period covering Hurricane María in Puerto Rico.
- The Condominio filed an insurance claim for property damage linked to Hurricane María, later filing suit for breach of contract and damages when Triple-S allegedly failed to fully compensate the loss.
- After initial offers deemed insufficient, Triple-S issued a more substantial adjustment, formally recognizing $139,429.51 in covered damages.
- The Condominio requested summary judgment, seeking immediate payment of the admitted amount, plus interest and attorney’s fees, without waiving its right to pursue remaining claims.
- The trial court denied summary judgment, holding the adjustment was not a formal offer and noting possible factual controversies and defenses—including fraud—raised by Triple-S.
- The Condominio appealed by certiorari, challenging the denial and seeking enforcement of Triple-S’s recognized adjustment as a liquid, enforceable obligation.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether insurer's adjustment ($139,429.51) is a liquid, enforceable debt | Insurer’s own adjustment is a binding recognition of debt, subject to immediate payment | Adjustment is not a binding offer; factual disputes remain; fraud defense | Adjustment is enforceable: insurer must pay recognized amount |
| Whether interests for delayed payment (mora) are owed | Delay in payment since adjustment merits statutory interest | No enforceable obligation until all controversies resolved | Interest owed from date of formal adjustment (March 24, 2022) |
| Whether conduct merits temerity/penalty interest | Insurer’s delays and defenses were obstinate and merit penalty interest | No temerity; not unreasonable in asserting defenses | No temerity found; penalty interest not awarded |
| Whether attorney fees must be awarded under insurance law | Statute mandates attorney fees for prevailing insureds | Not addressed specifically | Attorney fees ordered as required by insurance law |
Key Cases Cited
- Carpets & Rugs, Inc. v. Tropical Reps, Inc., 175 DPR 615 (P.R. 2009) (insurer’s adjustment/offer is a binding debt, not a negotiation offer; cannot retract recognized payment)
- Feliciano Aguayo v. Mapfre Panamerican Ins. Co., 207 DPR 138 (P.R. 2021) (insurance adjustment constitutes admission of liquidated debt, which must be promptly paid)
- Consejo de Titulares del Cond. Balcones de San Juan v. Mapfre PRAICO Ins. Co., 208 DPR 761 (P.R. 2022) (retroactive application of attorney fee provision for hurricane claims)