Junta De Retiro Del Gobierno De Pr Y La v. Sucesion De Angel Manuel Loprez Torres
KLAN202401138
| Tribunal De Apelaciones De Pue... | Mar 20, 2025Background
- Ángel Manuel López Torres and Marta Osorio Cepeda obtained a mortgage loan from the Retirement System of Puerto Rico, secured by a mortgage and accompanied by a collective mortgage life insurance policy.
- Mr. López Torres passed away on August 29, 2008; Osorio Cepeda argued that per the insurance, the outstanding mortgage should be canceled following his death.
- The Retirement Board (Junta de Retiro) alleged that the insurance coverage had terminated due to payment arrears prior to Mr. López Torres's death, contending the debt remained owed.
- Osorio Cepeda produced a letter from the Junta indicating the insurance terminated October 1, 2008, after Mr. López Torres’s death.
- The Tribunal de Primera Instancia granted partial summary judgment for Osorio Cepeda, concluding insurance coverage existed on the date of death and ordered the mortgage canceled; the Retirement Board appealed.
Issues
| Issue | Plaintiff's Argument (Junta) | Defendant's Argument (Osorio Cepeda) | Held (Court) |
|---|---|---|---|
| Was the mortgage life insurance in effect at Mr. López’s death? | Insurance canceled due to arrears before death | Insurance remained in force at death | Insurance effective at death, mortgage debt canceled |
| Was proper notice of insurance cancellation given? | Notice was not necessary per insurance contract | Notice was required and not timely given | Junta’s letter showed insurance canceled after death; lack of earlier notice to debtor fatal |
| Should summary judgment have been granted? | Factual dispute over insurance coverage exists | No real factual dispute; documentation clear | No substantial factual dispute; summary judgment proper |
| Did the lower court err in canceling the mortgage? | Error, as debt was not insured at death | Proper, as insurance obligated discharge | No error; lower court ruling affirmed |
Key Cases Cited
- Meléndez González v. M. Cuebas, 193 DPR 100 (P.R. 2015) (standard for summary judgment review by appellate courts is de novo)
- Rivera Matos v. Triple-S, 204 DPR 1010 (P.R. 2020) (insured must show claim is within policy, insurer must prove exclusions)
- Eagle Security v. Efrón Dorado, 211 DPR 70 (P.R. 2023) (allegations must be read most favorably to non-moving party at dismissal stage)
- Oriental Bank v. Perapi, 192 DPR 7 (P.R. 2014) (no summary judgment if material factual disputes exist)
- SLG Zapata-Rivera v. J.F. Montalvo, 189 DPR 414 (P.R. 2013) (party opposing summary judgment must point to specific disputed facts with evidence)