Roldan Flecha, Lizbeth v. Cruz Cruz, Luis Alberto
KLAN202400614
Tribunal De Apelaciones De Pue...Jul 16, 2024Background
- Lizbeth Roldán bought a property from Luis Alberto Cruz Cruz and Jazmín Martínez Rosario through a contract stating the property was sold “as is.”
- The purchase was financed by Cooperativa de Ahorro y Crédito Oriental (the Cooperative), which later transferred the loan and mortgage note to Oriental Bank.
- Roldán subsequently discovered hidden defects (vicios ocultos) in the property and sued both the sellers and the Cooperative, alleging contract rescission for fraud and damages.
- The original trial court granted summary judgment for Oriental Bank, finding it had no role in the sale or awareness of defects, but denied the Cooperative's motion for summary judgment, finding disputed issues regarding the Cooperative’s responsibility due to its involvement in the appraisal and FHA-related federal regulations.
- The Cooperative appealed the denial, arguing it played no role beyond financing and did not breach any federal or contractual duties.
- The Appeals Court ultimately reversed the lower court and dismissed claims against the Cooperative with prejudice.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Liability for hidden defects | Cooperative liable due to FHA rules and appraisal duties | Only financed purchase and obtained appraisal | Cooperative not liable; no direct involvement |
| Duty to inspect for vicios ocultos | Appraiser should have found hidden defects per FHA rules | FHA/USPAP rules only require appraisal, not inspection | No such duty extends to the Cooperative |
| Impact of "as is" condition | Contract did not waive liability if there was fraud or hidden defects | Sale was “as is,” buyer accepted property | "As is" condition valid; buyer acknowledged risks |
| Scope of contractual/responsibility | Cooperative went beyond normal lender duties | Limited to financing, provided required disclosures | Only responsibilities as lender, not as inspector |
Key Cases Cited
- Amaro González v. First Fed. Savs., 132 D.P.R. 1042 (P.R. 1993) (lender liability for involvement beyond financing in a transaction)
- Domínguez Talavera v. Caguas Expressway Motors, 148 D.P.R. 387 (P.R. 1999) (duty of sellers for vicios ocultos and contract doctrine)
- Ferrer Delgado v. General Motors Corp., 100 D.P.R. 246 (P.R. 1971) (scope of seller’s duty for hidden defects)
- Rodríguez Ramos et al. v. ELA et al., 190 D.P.R. 448 (P.R. 2014) (force of contracts and parties' obligations)