R&B Power, Inc. v. Junta de Subastas de la Administración de Servicios Generales de Puerto Rico
2024 TSPR 24
P.R.2024Background
- The case involves R&B Power, Inc., which was excluded from a government auction process (subasta) by the Junta de Subastas of the Administration of General Services (ASG) from Puerto Rico for failing to comply with revised equipment specifications and not paying an appeal fee.
- After the rejection, R&B Power sought review from the Junta Revisora de Subastas, which dismissed their request on the grounds they had not paid a filing fee established by a Carta Circular (administrative letter) issued by ASG.
- The fee for administrative review was introduced via a Carta Circular and not by formal regulation.
- The Appellate Court affirmed the dismissal, holding that the appeal was not perfected due to nonpayment of the fee.
- R&B Power appealed to the Puerto Rico Supreme Court, raising issues about the validity of imposing such a fee via a Carta Circular and the jurisdictional timing of the Junta Revisora’s actions.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Can an agency apply a legislative-type rule issued in a Carta Circular without formal rulemaking under the LPAU? | R&B: Regulation imposing general fees must follow formal LPAU rulemaking, and a Carta Circular targeting agencies cannot be imposed on bidders/public. | ASG: Carta Circular sets internal agency fees; R&B should have challenged it via judicial review within 30 days. | No, agency cannot impose such rules without following LPAU procedures. |
| Did the failure to pay the fee (from the Carta Circular) deprive the Junta Revisora of jurisdiction to review R&B Power’s claim? | R&B: Refusal to perfect appeal for not paying a fee established without proper regulation is unlawful. | ASG: Nonpayment = defective filing; thus, no administrative jurisdiction to review claim. | No, the requirement and dismissal were invalid because the fee was improperly imposed. |
| Did the Junta Revisora lose jurisdiction for failing to extend its review deadline within the statutory period? | R&B: Junta Revisora’s late extension means it lost jurisdiction to dismiss or decide the review request. | ASG: Based on case law, the Junta retains jurisdiction as long as the time for judicial review hasn’t expired and no appeal is filed. | Junta Revisora retains jurisdiction as long as no court review has commenced. |
| Was the Carta Circular, as applied for the appeal fee, ultra vires and procedurally invalid? | R&B: Fee imposition without regulation is ultra vires and void. | ASG: Could have been challenged directly after publication; not so now. | Yes, Carta Circular’s fee was void as not adopted as a regulation. |
Key Cases Cited
- Asociación Maestros v. Comisión, 159 DPR 81 (rule with effect of law must be adopted by regulation).
- Mun. de Toa Baja v. DRNA, 185 DPR 684 (legislative-type rules require formal LPAU procedures).
- Flores Concepción v. Taíno Motors, 168 DPR 504 (administrative body retains jurisdiction as long as appeal time hasn’t expired and no appeal filed).
- Fideicomiso de Conservación de Puerto Rico v. ELA, 211 DPR 521 (agencies must strictly adhere to delegated powers and procedures).
- González Segarra v. CFSE, 188 DPR 252 (administrative letters/circulars are generally not legislative rules).