The Court of Appeals of Puerto Rico has upheld a lower court's ruling that requires Powerfy Home, LLC to pay Estrella, LLC a total of $38,929.48 for unpaid legal services. The decision, issued on May 26, 2026, is significant as it emphasizes the importance of contractual obligations and the consequences of failing to honor them.
This ruling affects both Estrella, LLC, a legal services provider, and Powerfy Home, LLC, a company that contracted Estrella for legal representation. The case highlights the legal framework surrounding contractual agreements and the responsibilities of parties involved in such contracts.
Background
The dispute arose when Estrella, LLC filed a lawsuit against Powerfy Home, LLC on May 13, 2025, claiming that Powerfy had failed to pay for legal services rendered. Estrella alleged that Powerfy owed them $38,929.48, plus interest and legal fees. The legal services were provided under an “Engagement Agreement” that outlined the terms of payment.
Powerfy responded to the lawsuit on September 10, 2025, but did not submit to the court's jurisdiction. Instead, they denied many of Estrella's allegations and raised defenses, including a claim of lack of standing and jurisdiction. This led to a series of procedural motions, culminating in Estrella's motion for summary judgment, which was filed on January 29, 2026.
The Ruling
On March 5, 2026, the lower court ruled in favor of Estrella, granting their motion for summary judgment. The court found that there were no material facts in dispute, confirming that Powerfy owed the claimed amount for services rendered. The court stated, "The debt is liquid, due, and enforceable," highlighting the lack of objection from Powerfy regarding the invoices sent by Estrella.
Powerfy appealed the decision, arguing that the lower court had made several errors, including the assertion that there were genuine disputes of material facts. However, the Court of Appeals, led by Judge Bonilla Ortiz, reviewed the case and confirmed the lower court's ruling, stating, "We find no errors in the lower court's determination that there were no material facts in controversy."
Impact
This ruling reinforces the importance of adhering to contractual agreements and the legal consequences of failing to uphold such commitments. It serves as a reminder to businesses about the necessity of addressing outstanding debts and the potential ramifications of ignoring contractual obligations.
The decision also emphasizes the court's discretion in awarding legal fees for frivolous or bad faith litigation, as Powerfy was ordered to pay $3,000 in attorney fees due to their conduct during the legal proceedings. This aspect of the ruling may deter other companies from engaging in similar behavior when facing legitimate claims.
What's Next
Powerfy has the option to appeal the ruling to a higher court, although details regarding any potential appeal were not available in the court filing. There are no related cases pending at this time.