The Puerto Rico Court of Appeals recently ruled against Tres Hermanos LLC in a case concerning a denied promotional endorsement from the CompañÃa de Turismo de Puerto Rico. The court stated that it did not have the authority to hear the appeal because it was filed prematurely. This decision affects Tres Hermanos LLC and other businesses seeking similar endorsements from the tourism agency.
The court's ruling came on May 26, 2026, and is significant for businesses operating in Puerto Rico's tourism sector. The outcome underscores the importance of following proper procedures when appealing administrative decisions. Tres Hermanos LLC had sought to challenge the tourism agency's denial of a promotional endorsement, but the court found that the company had not exhausted all available administrative remedies before seeking judicial review.
Background
Tres Hermanos LLC is a business that sought a promotional endorsement from the CompañÃa de Turismo de Puerto Rico. The agency denied this request on March 13, 2026, citing regulations governing tourism and accommodations in Puerto Rico. Following the denial, Tres Hermanos requested reconsideration, arguing that the agency failed to respond within the required timeframe, which they claimed constituted a tacit denial of their request.
On May 20, 2026, Tres Hermanos LLC filed a judicial review request with the Puerto Rico Court of Appeals, claiming that the agency had incorrectly classified their property as a short-term rental. The case was assigned the docket number TA2026RA00265 and was heard by a panel of judges, including President Judge Candelaria Rosa, Judge Adames Soto, and Judge Campos Pérez, who authored the opinion.
The Ruling
The Puerto Rico Court of Appeals ruled to dismiss Tres Hermanos LLC's appeal due to lack of jurisdiction. The court emphasized that the company had not followed the required administrative procedures before seeking judicial review. The opinion stated, "the comparecencia of Tres Hermanos ante este Tribunal resulta prematura, puesto que le correspondÃa impugnar la denegatoria del endoso en disputa en primera instancia, mediante un procedimiento adjudicativo formal ante la CompañÃa de Turismo." This translates to the court indicating that Tres Hermanos should have first pursued a formal adjudicative process with the tourism agency.
Judge Campos Pérez noted that jurisdiction is a critical aspect of any legal proceeding, stating, "la falta de jurisdicción no es susceptible de ser subsanada." This means that if a court lacks jurisdiction, it cannot proceed with the case, and any ruling made would be invalid. The court's decision reinforces the necessity for parties to adhere to procedural requirements when contesting administrative decisions.
Impact
The ruling has significant implications for businesses in Puerto Rico's tourism sector. It clarifies that companies must exhaust all administrative remedies before seeking judicial intervention. This means that if a business faces a denial from the CompañÃa de Turismo, it must first follow the proper procedures for appealing that decision within the agency before taking the matter to court.
This decision may also serve as a precedent for future cases involving disputes between businesses and the tourism agency. It emphasizes the importance of understanding and following the regulatory framework established by the agency, which governs the granting of promotional endorsements and other licenses. Businesses will need to be diligent in ensuring they comply with these regulations to avoid premature appeals that could be dismissed on jurisdictional grounds.
What's Next
Details were not available in the court filing regarding whether Tres Hermanos LLC plans to pursue further action or if they will reapply for the promotional endorsement through the proper channels. The court's ruling is final unless an appeal is made to a higher court, which could be a possibility depending on the company's next steps.