Jlg Consulting Engineering Psc v. Tetrad Enterprises Limited Liability
KLAN202400046
Tribunal De Apelaciones De Pue...Aug 23, 2024Background
- JLG Consulting Engineering, P.S.C. (JLG) sued Tetrad Enterprises, LLC (TETRAD) for unpaid professional engineering services related to a pump replacement project for the Puerto Rico Department of Natural and Environmental Resources (DRNA).
- The contract between DRNA and TETRAD was for over $26 million; JLG designed systems and produced documents for the construction, without receiving payment from TETRAD.
- The parties agreed (orally) that JLG would be compensated according to the fee guidelines established by the Colegio de Ingenieros y Agrimensores de Puerto Rico (CIAPR Manual) as a percentage of project cost, applicable to complex works (Category 5).
- TETRAD received JLG’s invoices, communicated approval in various ways, but did not pay the claimed amount of $2,354,658.80, calculated pursuant to the CIAPR Manual.
- The trial court entered judgment for JLG, finding the debt “liquid, due, and payable,” and TETRAD appealed on several procedural and substantive grounds, primarily contesting the validity and amount of the debt and the process followed by the court.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the debt is liquid, due, and payable | Amount and method of compensation was agreed, calculated per CIAPR Manual, based on cost | No written agreement; debt not liquid/due, requirement for money collection claim not met | Debt is liquid, due, and payable; JLG proved amount and method per agreement |
| Whether judgment improperly deviated from “law of the case” (prior ruling that debt not liquid) | Later trial evidence established all facts needed; prior ruling was at summary judgment stage | Prior ruling not appealed or changed, so should control (“law of the case”) | No deviation; summary judgment denial just preserved issue for trial, not binding determinatively |
| Whether lack of written agreement precludes enforceability of contract and fee | Oral agreements are valid and sufficient under PR law; parties admitted to oral deal | No enforceable agreement on terms or amount; perito says no fixed fee | Oral agreement enforceable; sufficient evidence of agreement to CIAPR methodology |
| Whether the factfinding and judgment resulted from improper summary judgment procedure or lacked evidence | Trial evidence was extensive and uncontradicted; key facts supported by testimony and documents | Trial court just adopted party's facts; relied on “self-serving” statements; ignored defense expert’s views | Trial court’s findings supported by record and due deference owed on credibility |
Key Cases Cited
- Pueblo v. Hernández Doble, 210 DPR 850 (P.R. 2022) (appellate deference to trial court findings)
- Santiago Ortiz v. Real Legacy et al., 206 DPR 194 (P.R. 2021) (trial-level credibility determinations)
- Dávila Nieves v. Meléndez Marín, 187 DPR 750 (P.R. 2013) (contract interpretation and enforceability principles)
- Méndez v. Morales, 142 DPR 26 (P.R. 1996) (oral contracts are as valid as written under Puerto Rico law)
- Vila & Hnos., Inc. v. Owens Ill. de P.R., 117 DPR 825 (P.R. 1986) (enforceability of verbal agreements)
