Katiria's Café, Inc. v. Municipio Autónomo de San Juan
2025 TSPR 33
P.R.2025Background
- Katiria’s Café, Inc. was fined $2,000 by the Office of Permits of the Municipality of San Juan for allegedly operating a bar as its primary business, violating the Puerto Rico Permitting Reform Law (Ley Núm. 161-2009).
- The Café submitted a timely request for reconsideration, arguing that its main business was food service and the sale of alcoholic beverages was incidental; it also claimed a violation of due process for not being granted an administrative hearing.
- The Municipality of San Juan failed to respond to the reconsideration and repeatedly failed to submit the administrative record when ordered by the Court of Appeals.
- The Court of Appeals nonetheless upheld the fine, relying on the presumption of administrative regularity despite lacking the full record and despite the Café's due process challenge.
- Katiria’s Café appealed, asserting that its due process rights were violated because it was denied an opportunity to be heard and to challenge the evidence against it.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Due process in administrative fines | Café was denied an administrative hearing and the opportunity to contest the evidence supporting the fine | San Juan failed to respond and produced no contrary argument | The Municipality failed to provide due process; decision reversed |
| Requirement of administrative record for judicial review | Judicial review was impossible without the administrative record; errors could not be meaningfully assessed | No appearance, no argument | Appeals court erred in affirming without record; must have record to review |
| Presumption of regularity in agency decisions | Cannot apply presumption where process and documentation were deficient | No appearance, no argument | Presumption cannot stand without procedural compliance & record |
| Appropriate remedy for procedural violations | A hearing should be ordered and the process made compliant with due process | No appearance, no argument | Remand to Municipality for full adjudicative hearing within 15 days |
Key Cases Cited
- Rivera Rodríguez & Co. v. Lee Stowell, 133 D.P.R. 881 (requirements of due process in administrative settings)
- Vázquez González v. Municipio de San Juan, 178 D.P.R. 636 (enumerates minimum due process guarantees in agency proceedings)
- Almonte v. Brito, 156 D.P.R. 475 (due process is flexible but requires fairness in agency action)
- Rivera Santiago v. Secretario de Hacienda, 119 D.P.R. 265 (agencies' final decisions must include findings of fact and law to enable judicial review)