The Puerto Rico Court of Appeals recently dismissed a legal challenge from AE Nova Dist., Inc. regarding a bid awarded for the installation of seating at the Carlos Romero Barceló Amphitheater. The court ruled that the case had become academic after the municipality canceled the request for proposals (RFP) involved. This decision affects AE Nova and other bidders who participated in the RFP process.

The case, docketed as TA2026RA00407, centered around AE Nova's contention that the Junta de Subastas del Municipio de San Juan (the Bidding Board) incorrectly awarded the contract to Krone Contract International, LLC. AE Nova argued that it was the lowest responsible bidder and that the Bidding Board had made errors in its decision-making process.

Background

AE Nova Dist., Inc. filed an administrative review on July 16, 2026, seeking to overturn the Bidding Board's decision made on July 6, 2026. The Bidding Board awarded the contract for RFP No. 2026-016, which was for the acquisition and installation of seating at the amphitheater, to Krone Contract International. AE Nova claimed that the Bidding Board had disqualified it based on false premises and had failed to disqualify Krone despite alleged non-compliance with mandatory requirements.

The Bidding Board had published a public notice on May 11, 2026, inviting proposals for the project. After evaluating bids from several companies, including AE Nova, Krone, Multidesk, High Tech Contractors, and Caribbean Equipment, the Board decided to award the contract to Krone based on its proposal of $232,416. AE Nova's subsequent challenge to this decision led to the court case.

The Ruling

The court ruled on August 6, 2026, that it lacked jurisdiction to consider the merits of AE Nova's appeal. The court stated, "we conclude that we lack jurisdiction to enter into the merits. This is because we are faced with an Administrative Review Resource that has become academic after its presentation." The judges on the panel included Judge Rodríguez Casillas, Judge Barresi Ramos, and Judge Santiago Calderón.

The court explained that the Bidding Board had filed a request to dismiss AE Nova's appeal on July 30, 2026, citing that the matter had become academic due to the cancellation of RFP No. 2026-016. The court emphasized that without jurisdiction, it could not address the substantive issues raised by AE Nova.

Impact

This ruling has significant implications for AE Nova and other bidders involved in the RFP process. By dismissing the case on jurisdictional grounds, the court underscored the importance of justiciability, meaning that courts will not intervene in cases that no longer present a live controversy. This decision reinforces the principle that courts must avoid addressing issues that have become moot.

The ruling also highlights the procedural aspects of administrative law in Puerto Rico, where courts have limited authority to review decisions made by administrative agencies unless there is a clear jurisdictional basis. This case may serve as a reference for future disputes involving administrative decisions and the requirements for judicial review.

What's Next

As the court has dismissed the case, AE Nova cannot appeal this specific ruling. However, the municipality's cancellation of the RFP means that there is currently no ongoing contract dispute. It remains to be seen if AE Nova or any other bidders will pursue future opportunities or if new proposals for the project will be issued.