Cortes Cardona, Cesar Francisco v. Jorge Rojas Mercado H/N/C Secret Garden
KLRA202500114
Tribunal De Apelaciones De Pue...May 9, 2025Background
- Plaintiffs (Cortés Cardona and Galindo Portilla) contracted defendant (Rojas Mercado, doing business as Secret Garden) in 2021 to install a fish pond and irrigation system at their residence for $31,000.
- The plaintiffs fully paid for the work, which was completed between July 2021 and January 2022.
- The installation showed several construction defects: persistent water leaks, inadequate filtration, flooding, dying fish and plants, and increased water bills.
- Plaintiffs incurred additional expenses attempting to rectify the issues, including replacing the pump, constructing a new wall, and buying new UV lights.
- Plaintiffs filed an administrative complaint with DACo, seeking the return of money paid and reimbursement for further expenses; the DACo held a hearing, received evidence, and ruled in their favor, ordering defendant to pay $34,395.41 plus interest.
- Defendant sought review in the Puerto Rico Court of Appeals, challenging the evidence and application of law.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Was the contract breached by Rojas Mercado? | Rojas Mercado failed to repair defective work despite notice, requiring plaintiffs to expend more money. | He acted diligently; plaintiffs have benefited from (and still use) the work. | Defendant breached by not correcting defects or meeting contract guarantees. |
| Should the contract be rescinded and money refunded? | Plaintiffs are entitled to restitution and damages for non-performance and defective construction. | Refund would unjustly enrich plaintiffs who still use the system. | Contract rescission and full refund proper due to frustration of contract purpose and defective work. |
| Was judicial review of DACo decision proper? | Agency’s factual determinations based on credibility and evidence should be deferred to. | DACo failed to consider defendant's expert report; decision lacked proper analysis. | Agency findings based on credibility given deference; no clear error or prejudice found. |
| Is enrichment unjust since the system is still in use? | Plaintiffs had to incur significant expenses to remedy a non-functional system; no enrichment exists. | Refund is unjust because system and pond remain in use by plaintiffs. | Defendant did not establish the elements required for unjust enrichment defense. |
Key Cases Cited
- Rolón Martínez v. Supte. Policía, 201 DPR 26 (P.R. 2018) (outlines deference to agency fact-finding)
- Graciani Rodríguez v. Garaje Isla Verde, 202 DPR 117 (P.R. 2019) (judicial deference to agencies and sufficiency of evidence)
- Constructora Bauzá, Inc. v. García López, 129 DPR 579 (P.R. 1991) (explains contractor obligations and contract rescission for defective work)
- Álvarez v. Rivera, 165 DPR 1 (P.R. 2005) (standard for contract resolution due to partial or defective performance)
- Master Concrete Corp. v. Fraya, S.E., 152 DPR 616 (P.R. 2000) (elaborates on damages for breach of service contracts)
