Jovan, Inc v. Municipio De Aguadilla
KLAN202500096
Tribunal De Apelaciones De Pue...Mar 31, 2025Background
- Jovan, Inc. (“Jovan”) was contracted by the Municipality of Aguadilla for the construction of a historic archive and museum, with the project divided into permitting and construction phases.
- Numerous contractual amendments were made as delays and design changes arose; Jovan sent multiple letters notifying the Municipality of delay-related costs (“extended overhead”) due to late approval of change orders.
- The Municipality never contested Jovan’s extended overhead claims during the project, and some amendments explicitly did not bar additional claims for certain delays, while others waived such claims.
- After substantial completion, Jovan sued for $412,160.72 in extended overhead due to delays attributed to the Municipality; the trial court awarded $446,603.12 for extended overhead and $24,500 for inspection/supervision costs that had been deducted by the Municipality.
- The Municipality appealed, challenging the sufficiency of the evidence on both awards, and argued Jovan had accepted responsibility for supervision expenses under contract amendments.
- No meaningful defense evidence was presented by the Municipality at trial on either issue.
Issues
| Issue | Plaintiff Argument | Defendant Argument | Held |
|---|---|---|---|
| Entitlement to extended overhead damages | Delays caused by Municipality merited compensation per standard construction principles | No contractual basis for such costs; Jovan also had delays | For Jovan — Municipality’s delays justified the award |
| Proof of extended overhead damages | Used expert testimony, extensive documentation; Municipality didn’t refute | Insufficient proof/causal link, not all delays compensable | For Jovan — evidence was sufficient; no rebuttal offered |
| Reimbursement of supervision/inspection costs | Jovan only signed amendments under duress; not voluntarily assumed | Jovan expressly assumed responsibility by amendment | For Municipality — contractually assumed by Jovan |
| Effect of contract amendments waiving claims | Clauses were null as contracts of adhesion or didn’t cover all change orders | Express waivers bind Jovan under contract law | Followed amendments’ express terms, no waiver where absent |
Key Cases Cited
- Morán v. Martí, 165 DPR 356 (P.R. 2005) (establishes presumption of correctness for trial court findings)
- SLG Fernández-Bernal v. RAD-MAN, 208 DPR 310 (P.R. 2021) (deference to credibility assessments of trial courts)
- Barreto Nieves v. East Coast, 213 DPR 852 (P.R. 2024) (standards for appellate court intervention in factual findings)
- Master Concrete Corp. v. Fraya, SE, 152 DPR 616 (P.R. 2000) (discusses obligations and standard of care in construction contracts)
- Constructora Bauzá, Inc. v. García López, 129 DPR 579 (P.R. 1991) (distinguishes obligations in construction contracts)
- Johnson & Johnson Int’l Inc. v. Mun. San Juan, 172 DPR 840 (P.R. 2007) (limits on municipal contracting power)
- Cacho Pérez v. Hatton Gotay, 195 DPR 1 (P.R. 2016) (finality and binding nature of unappealed judgments)