The Court of Appeals of Puerto Rico recently dismissed a challenge from Rottan Group LLC regarding a public bid for asphalt services. The court ruled that the case was no longer relevant due to changes made by the Junta de Subastas del Municipio Autónomo de Juncos, which had previously awarded the bid to Rottan and another company. This decision impacts how public bidding disputes may be handled in the future.

Rottan Group LLC filed an appeal against the Junta de Subastas after it awarded the contract for Subasta Número 04 Año 2026-2027 to both Rottan and Harry Auto Kool, Inc. Rottan claimed that the award to Harry Auto Kool was improper because the company failed to meet certain bidding requirements. The case, identified as TA2026RA00385, highlights the complexities of public procurement processes in Puerto Rico.

Background

The dispute began when the Junta de Subastas published a notice on March 25, 2026, inviting proposals for the procurement of asphalt services for the Municipality of Juncos. The bid opening occurred on April 14, 2026, with several companies submitting their proposals, including Rottan Group and Harry Auto Kool.

On June 26, 2026, the Junta de Subastas announced its decision to award the contract to both Rottan and Harry Auto Kool, stating that both companies had provided reasonable costs and met the necessary requirements. Dissatisfied with the decision, Rottan filed a judicial review on July 12, 2026, arguing that Harry Auto Kool did not comply with all bidding specifications, particularly regarding a required guarantee.

The Ruling

The Court of Appeals, which included judges Rodríguez Casillas, Barresi Ramos, and Santiago Calderón, ultimately dismissed Rottan's appeal. The court noted, "the resolution issued on June 26, 2026, became academic" after the Junta de Subastas issued an amended resolution on July 29, 2026, which corrected the alleged deficiencies pointed out by Rottan.

The court explained that it lacked jurisdiction to hear Rottan's claims because the matter was no longer adversarial. The judges emphasized that judicial review requires an existing controversy, stating, "the absence of jurisdiction is insubsanable," meaning that the court cannot proceed with a case if it lacks the authority to do so.

Impact

This ruling has significant implications for future public bidding processes in Puerto Rico. It reinforces the principle that once a public agency corrects an award decision, any challenges to the prior decision may be rendered moot. This can affect how companies approach bidding disputes, knowing that timely amendments or corrections by the awarding agency can nullify their appeals.

Additionally, the ruling serves as a reminder for bidders to closely monitor the procedural aspects of public contracts. Failure to do so could lead to losing the opportunity to contest decisions effectively. It also highlights the importance of clear communication from public agencies regarding bid evaluations and awards.

What's Next

As of now, there is no indication that Rottan Group plans to appeal this decision further. The amended resolution by the Junta de Subastas remains in effect, and it appears that Rottan will need to adapt to the new circumstances regarding the asphalt contract.