The Puerto Rico Court of Appeals recently ruled in favor of Oriental Bank in a significant debt collection case involving Neumovida P.S.C. and its owners, Hyrza Magdalys Vázquez Rivera and Jason Chávez Guerra. The court's decision, issued on May 14, 2026, confirmed a lower court's ruling that the defendants owed over $310,000 to the bank. This ruling is crucial for financial institutions in Puerto Rico, as it reinforces the enforceability of loan agreements and the obligations of borrowers.
The case, officially titled Oriental Bank v. Andrés Potes Correa Eduardo Meléndez Mulero v. Neumovida P.S.C., Hyrza Magdalys Vázquez Rivera, Jason Chávez Guerra Y La Sociedad Legal De Gananciales Compuesta Entre Ambos, was filed under docket number TA2026AP00373. The dispute arose from a commercial loan agreement that Neumovida entered into with Oriental Bank in 2022, which the bank claimed was defaulted upon by the defendants.
In the initial complaint filed on January 3, 2024, Oriental Bank alleged that Neumovida, through its owners, had taken out a loan of $322,500 to finance business activities. The loan was secured by a promissory note and several properties owned by the defendants. However, by December 19, 2023, Neumovida had accrued a total debt of $332,188.37, including principal, interest, and late fees. The bank claimed that the defendants had failed to make payments despite multiple collection efforts.
The defendants contested the bank's claims, arguing that they had not been properly informed about the terms of the loan and that the bank had acted in bad faith. They contended that the loan was predatory and that they had been misled about the financial obligations they were assuming. The defendants sought to counterclaim against Oriental Bank, asserting that the bank had violated various lending laws and that the court lacked jurisdiction due to the failure to follow mandatory mediation procedures.
On February 5, 2026, the lower court ruled in favor of Oriental Bank, granting a summary judgment that ordered the defendants to pay $310,406.25 plus interest and fees. The defendants appealed this decision, leading to the recent ruling by the Court of Appeals.
The Court of Appeals, led by Judge Hernández Sánchez, along with Judges Rivera Torres and Marrero Guerrero, upheld the lower court's ruling. The court stated, "The appellants did not present sufficient facts or evidence to support their counterclaims or third-party claims, which were therefore dismissed." The ruling confirmed that the defendants were liable for the debt and that Oriental Bank was entitled to execute the mortgages and other guarantees provided for the loan.
This ruling has significant implications for the financial sector in Puerto Rico. It reinforces the idea that borrowers must adhere to the terms of their loan agreements and that lenders can enforce their rights in court. The decision also highlights the importance of clear communication and documentation in loan transactions.
The court's ruling may serve as a precedent for future cases involving loan disputes, particularly in terms of the responsibilities of both lenders and borrowers. It emphasizes that claims of predatory lending must be substantiated with clear evidence and that courts will uphold contractual agreements when they are properly executed.
Looking ahead, the defendants have the option to appeal the Court of Appeals' decision to the Supreme Court of Puerto Rico. However, details on whether they will pursue this option were not available in the court filing. The outcome of this case could influence similar disputes in the future, especially regarding the enforcement of loan agreements and the rights of borrowers under Puerto Rican law.