The Puerto Rico Court of Appeals has upheld a lower court's ruling that requires El Farmer, Inc. and its guarantor, Miguel Angel Ramos Cruz, to pay over $4 million in outstanding loans. This decision affects the company and its financial obligations, marking a significant development in the case.
The ruling, issued on May 27, 2026, confirms a previous summary judgment from the Aguadilla Superior Court. The court found that El Farmer and Ramos Cruz failed to meet their payment obligations on three commercial loans originally granted by the Banco de Desarrollo Económico para Puerto Rico in 2016.
The loans in question, identified by numbers 5200000780, 5200000781, and 5200000782, were for amounts totaling approximately $3.3 million, with additional charges for interest and penalties. PR CR Investment Corp., the plaintiff in this case, acquired the rights to the loans and sought to collect the outstanding amounts through legal action.
The dispute began when PR CR Investment filed a lawsuit against El Farmer and Ramos Cruz on September 10, 2024, claiming that the defendants had defaulted on their loan payments. According to the court documents, the loans were guaranteed by a mortgage covering multiple properties owned by El Farmer. The plaintiff argued that they had the legal right to collect the debts as they had acquired the loans from the original lender.
El Farmer and Ramos Cruz responded by contesting the claims, arguing that PR CR Investment had not proven it was the rightful holder of the loans and that there were unresolved issues that warranted a trial rather than a summary judgment. However, the Aguadilla Superior Court ruled in favor of PR CR Investment, leading to the appeal.
The Court of Appeals, led by Judge Bonilla Ortiz, reviewed the case and ultimately confirmed the lower court's decision. The ruling stated, "We confirm the appealed judgment," affirming that the defendants were indeed in default and owed the specified amounts to the plaintiff.
The court's opinion detailed the financial obligations of El Farmer, including the principal amounts owed on each loan, the accumulated interest, and additional charges for late payments. The total amount due was determined to be over $4 million, taking into account ongoing interest and legal fees.
This ruling has significant implications for El Farmer, Inc. and its financial future. It reinforces the legal obligations of companies to fulfill their loan agreements and the rights of lenders to pursue collections through the court system. The decision also highlights the importance of maintaining accurate records and documentation in financial transactions.
Moving forward, this ruling sets a precedent for similar cases involving loan defaults and the enforcement of mortgage agreements in Puerto Rico. It underscores the necessity for businesses to adhere to their financial commitments and the legal recourse available to lenders when those commitments are not met.
As for what’s next, El Farmer and Ramos Cruz may consider appealing the ruling to a higher court, although details were not available in the court filing regarding their plans. The outcome of this case could influence future lending practices and borrower responsibilities in Puerto Rico.