The Puerto Rico Court of Appeals has upheld a lower court ruling in a significant debt collection case involving PR Asset Portfolio 2013-1 International, LLC (PRAPI) and several other parties. The decision, made on May 21, 2026, confirms that the defendants owe PRAPI approximately $8.76 million, plus accumulated interest. This ruling impacts multiple parties, including individuals and corporations involved in the original loan agreement.
The case originated from a lawsuit filed by Banco Popular de Puerto Rico (BPPR) in 2010 against Maver, S.E. and others, claiming a debt of over $6.8 million. The court's decision is significant as it clarifies the responsibilities of guarantors in loan agreements and reinforces the enforceability of debt obligations in Puerto Rico.
Background
In 2010, BPPR initiated legal action against Maver, S.E., Blue Sea Village Inc., JMC & Associates Corporation, and several individuals, including the Del Valle-RodrÃguez and Leyva-Romero couples. The bank claimed that Maver owed over $6.8 million and sought to execute various contracts and guarantees related to the debt. PRAPI took over the case in 2013, continuing the pursuit of the debt after BPPR agreed to remain involved only in defending against counterclaims.
In 2018, the court ruled that Maver and JMC owed a total of $10.77 million, including legal fees and costs. Following this, several public auctions were held to recover the owed amount, leading to an $8 million payment towards the debt. However, a deficiency of approximately $7.16 million remained unpaid, prompting PRAPI to file a motion for summary judgment in 2023, arguing that the remaining guarantors were still liable for the debt.
The Ruling
The Court of Appeals, led by Judge Monge Gómez and joined by Judges Romero GarcÃa and Lotti RodrÃguez, confirmed the lower court's ruling that the remaining guarantors, the Del Valle-RodrÃguez and Leyva-Romero couples, were liable for the remaining debt. The court stated, "the defendants maintain an obligation to PRAPI for the sum of approximately $8,758,672.00, which continues to accrue daily interest." This ruling affirms the lower court's decision that the guarantors' obligations were not extinguished by the prior sale and payment.
The court also addressed the appeals made by the defendants, who claimed that the lower court erred in its judgment. They argued that the underlying obligation had been extinguished through the judicial sale of collateral and that the court failed to consider their counterclaims adequately. However, the appellate court found no merit in these arguments and upheld the lower court's decision.
Impact
This ruling has significant implications for the enforcement of debt obligations in Puerto Rico. It reinforces the principle that guarantors remain liable for debts even after partial payments have been made through asset sales. This case sets a precedent for future cases involving guarantors and the extent of their liability in similar financial agreements.
The decision also highlights the importance of clear contractual obligations and the need for all parties involved in a loan agreement to understand their responsibilities. The court's ruling may encourage lenders to pursue similar actions against guarantors in the future, knowing that the courts will uphold such agreements.
What's Next
The defendants may seek further legal recourse by appealing to a higher court, although details regarding any potential appeal were not available in the court filing. There may also be related cases pending that involve similar issues of debt recovery and guarantor liability.