The Puerto Rico Court of Appeals recently denied an appeal from Miguel A. Nieves Pérez regarding a debt collection case. The court ruled that the lower court's decision to uphold a judgment against him for a debt of $13,974.26 was valid. This ruling is significant as it clarifies the procedures surrounding debt collection and the requirements for notifying defendants in such cases.
The case, titled Island Portfolio Services, LLC Como Agente Gestor De Fairway Acquisitions Fund, LLC v. Miguel A. Nieves Pérez, was filed under docket number TA2026CE00481. The court's decision was issued on May 21, 2026, and it addresses important procedural issues in debt collection cases in Puerto Rico.
Island Portfolio Services, acting as the agent for Fairway Acquisitions Fund, initiated the lawsuit against Nieves Pérez on February 2, 2022. The lawsuit sought to collect a debt totaling $13,974.26. Following the filing, the plaintiff attempted to notify Nieves Pérez of the lawsuit through certified mail on February 18, 2022. However, the notification was not claimed, leading to further complications in the case.
On April 4, 2022, after the initial notification attempt failed, the plaintiff requested permission from the court to serve Nieves Pérez personally. This request was granted, but the personal service was also unsuccessful. Subsequently, on June 14, 2022, the plaintiff sought authorization to serve Nieves Pérez by edict, which is a method of public notification. The court approved this request on June 27, 2022, and the edict was published in the San Juan Star on August 19, 2022.
Despite these efforts, Nieves Pérez did not respond to the lawsuit. Consequently, on January 19, 2023, the lower court issued a judgment against him, declaring him in default and ordering him to pay the claimed amount plus costs. This judgment was published on January 31, 2023.
On February 19, 2026, Nieves Pérez filed a motion seeking to have the judgment overturned, arguing that the court lacked jurisdiction because the plaintiff had failed to serve him within the required 120-day period after filing the complaint. However, on March 19, 2026, the lower court denied this motion, stating that it had properly followed the procedures for serving the defendant.
Following this denial, Nieves Pérez appealed to the Puerto Rico Court of Appeals, claiming that the lower court had erred in its decision. The court, led by Judge Grana Martínez and joined by Judges Ronda Del Toro and Lotti Rodríguez, reviewed the case and ultimately denied the appeal. In its ruling, the court stated, "the remedy of reopening is not a judicial absolute, and the transgression of the six-month term for filing a motion for relief is fatal."
The court's decision underscores the importance of adhering to procedural rules in debt collection cases. Specifically, it emphasizes that the 120-day deadline for serving a defendant is critical. If a plaintiff fails to meet this deadline, the court must dismiss the case without prejudice, meaning it can be refiled later. However, in this instance, the court determined that the plaintiff had followed the necessary procedures, and Nieves Pérez's arguments did not warrant overturning the judgment.
This ruling has broader implications for debt collection practices in Puerto Rico. It reinforces the necessity for plaintiffs to follow proper notification procedures and the importance of timely responses from defendants. The court's emphasis on procedural adherence may influence how future debt collection cases are handled, potentially making it more challenging for defendants to contest judgments based on procedural grounds.
Looking ahead, it is unclear whether Nieves Pérez will seek further legal recourse or if there are any related cases pending that could impact this ruling. The court's decision stands as a significant precedent for similar cases in the future, highlighting the importance of timely and proper notification in the legal process.