Island Portfolio Services, LLC, Como v. Padron Rosado, Luis E
KLCE202401119
| Tribunal De Apelaciones De Pue... | Dec 13, 2024Background
- Island Portfolio Services, LLC (“Island Portfolio”), as agent of Fairway Acquisitions Fund, filed a money collection lawsuit against Luis E. Padrón Rosado in Puerto Rico.
- Padrón Rosado contested the proceedings, arguing improper service, lack of subject matter and personal jurisdiction, and failure by the plaintiff to provide a required non-resident bond.
- The primary dispute centered on whether the statutory requirement to send a pre-suit collection notice to the “last known address” was fulfilled, as Island Portfolio sent notice to an outdated address.
- The plaintiff, Island Portfolio, argued it was a domestic corporation, legally authorized as a collection agency, and had sent notice to the last known address as per its records.
- The trial court denied Padrón Rosado’s motion to dismiss; Padrón Rosado petitioned for certiorari, raising procedural issues and the bond requirement.
- The Court of Appeals found the notice was not sent to the correct last known address, as required by Puerto Rico’s Debt Collection Agencies Act, and dismissed the case for lack of jurisdiction.
Issues
| Issue | Padrón Rosado's Argument | Island Portfolio's Argument | Held |
|---|---|---|---|
| Pre-suit notice to last known address | Notice sent to an address not used for 17 years; notice should be to current, known address | Notice was sent to last address on record; no obligation to ensure receipt beyond sending | Agreement with Padrón Rosado; requirement not met, dismissal |
| Jurisdiction on personal and subject matter | Lack of proper notice deprived court of jurisdiction | Proper procedures followed; plaintiff’s process adequate | No jurisdiction, as statutory notice lacked compliance |
| Conversion to ordinary procedure | Proceeding should be ordinary as notice was improper; otherwise due process denied | Issue is moot; trial court already converted case to ordinary process | Moot (already converted) |
| Requirement of non-resident bond | Fairway (actual creditor) is foreign, so must post bond; Island Portfolio lacked standing as mere agent | Island Portfolio is a domestic entity, licensed and bonded; requirement not applicable | No bond required for domestic party |
Key Cases Cited
- Domínguez Rivera v. Tribunal Superior, 103 DPR 117 (P.R. 1974) (failure to send pre-suit demand to last known address deprives court of personal jurisdiction and may be waived by debtor participation)
- Cobra Acquisitions v. Mun. Yabucoa, 210 DPR 384 (P.R. 2022) (distinguishes subject matter vs. personal jurisdiction and consequences thereof)
- Vaillant v. Santander, 147 DPR 338 (P.R. 1998) (purpose and application of non-resident bonds in civil litigation)