Puerto Rico court upholds ruling in LRI Holdings vs. JD Power

The Court of Appeals of Puerto Rico recently upheld a ruling against JD Power Equipment, LLC, confirming that the company owes LRI Holdings, Inc. a total of $14,900. This decision affects JD Power Equipment, which now must pay the debt stemming from a lease agreement dispute.

The case, titled LRI Holdings, Inc. v. JD Power Equipment, LLC, was filed on June 24, 2026, under docket number TA2026AP00422. The court's ruling was issued on June 24, 2026, and it confirms the lower court's decision that JD Power Equipment failed to comply with the lease terms, leading to the financial judgment against them.

Background

The dispute began when LRI Holdings, Inc. filed a lawsuit against JD Power Equipment on February 25, 2026. LRI alleged that JD Power Equipment violated their lease agreement for a property located in Caguas, Puerto Rico. The lease was set for five years with increasing monthly payments, starting at $2,000 and reaching $3,000 in the final year.

LRI claimed that JD Power Equipment notified them on November 3, 2025, that they would vacate the property immediately, which LRI viewed as a breach of contract. They also stated that JD owed them $9,204.16 in unpaid rent from September to November 2025, as well as additional costs for damages to the property, totaling $14,900.

On March 19, 2026, the lower court held a hearing and ruled in favor of LRI, declaring that JD Power Equipment was liable for the amount claimed. JD Power Equipment did not appear at the hearing, leading to a default judgment against them.

The Ruling

The Court of Appeals confirmed the lower court's ruling, stating that the notification sent to JD Power Equipment was valid under the applicable civil procedure rules. The court noted that JD Power Equipment had been properly notified of the lawsuit through certified mail, which is permitted under Rule 60 of the Civil Procedure Rules.

The court ruled, "The notification-citation was reasonably directed to inform the defendant of the claim and the date of the hearing in which they could appear and be heard."

The judges on the panel included Judge Hernández Sánchez, Judge Rivera Torres, and Judge Marrero Guerrero, with Judge Marrero Guerrero authoring the opinion. The court emphasized that the notification method used did not violate JD Power Equipment's due process rights.

Impact

This ruling reinforces the validity of using certified mail for notifications in civil cases, particularly for debt collection under the summary procedure. It clarifies that corporations can be notified through this method without needing personal service to an officer or authorized person.

The decision is significant for businesses in Puerto Rico, as it sets a precedent for how notifications are handled in similar cases. Companies must ensure they keep their registered addresses updated to avoid missing important legal notifications that could lead to default judgments.

What's Next

JD Power Equipment can appeal this decision to the Supreme Court of Puerto Rico if they choose to pursue further legal action. Details were not available in the court filing regarding any related cases pending.