Puerto Rico Court Dismisses Appeal Over Vehicle Auction Dispute

The Puerto Rico Court of Appeals has dismissed an appeal from Transporte Sonnell, LLC, concerning a public auction for heavy vehicles. The court ruled that it lacked jurisdiction to hear the case, which has implications for how public auctions are conducted in Puerto Rico.

This ruling affects Transporte Sonnell, which sought to contest the decision made by the Junta de Subastas de CRACCO Enterprises, LLC, regarding the awarding of a contract for the purchase of heavy-duty vehicles. The decision is significant as it clarifies the jurisdictional boundaries for appeals related to public procurement processes in Puerto Rico.

Transporte Sonnell filed its appeal on August 28, 2026, under docket number TA2026RA00373, after the Junta de Subastas awarded the contract to Super Guaraguao International. The case arose from a public bidding process initiated on March 4, 2026, where Transporte Sonnell submitted a proposal for a specific vehicle type. However, the Junta of Subastas deemed their proposal “non-responsive” due to technical specifications not meeting the minimum requirements.

Following the award announcement on April 23, 2026, Transporte Sonnell attempted to challenge the decision through administrative review. However, the Junta Revisora de Subastas of the Administración de Servicios Generales ruled it lacked jurisdiction because CRACCO is a private entity acting as an administrator for the Administración de Vivienda Pública (AVP), thus exempt from certain public procurement laws.

In its appeal, Transporte Sonnell argued that the notification of the award was defective and that their proposal should have been considered responsive. The court, however, found that the issues raised were beyond its jurisdiction to decide. It stated, “the immediate dismissal of the appeal is warranted due to lack of jurisdiction.” The decision was made by a panel that included judges Brignoni Mártir, Salgado Schwarz, and Aldebol Mora.

The ruling emphasizes the importance of jurisdiction in administrative matters and the need for parties to follow the correct procedural steps when contesting decisions made by entities involved in public procurement. The court highlighted that jurisdiction is not something that can be conferred voluntarily and that it must be strictly adhered to.

This decision sets a precedent for future cases involving public auctions and procurement processes in Puerto Rico. It clarifies that private entities managing public contracts may not fall under the same jurisdictional rules as government agencies, which could affect how businesses engage in bidding processes.

Going forward, this ruling may discourage other companies from pursuing appeals in similar circumstances unless they ensure they are following the correct procedures and addressing the right entities. It also highlights the importance of clear communication in procurement notifications to prevent misunderstandings about the appeal process.

As for what’s next, it remains to be seen whether Transporte Sonnell will seek further legal avenues or if there are any related cases pending that could challenge this ruling. The court’s decision stands as a significant interpretation of the jurisdictional limits in public procurement disputes in Puerto Rico.