The Puerto Rico Court of Appeals has confirmed a lower court's ruling in a contract dispute involving the late Ramón Vázquez Torres and the Municipality of Carolina. The court ruled on June 25, 2026, that the demand for payment by Vázquez Torres’s estate was not valid due to the lack of a registered contract. This decision affects the estate of Vázquez Torres, who had claimed a significant sum for professional services rendered to the municipality.
The case originated from a demand filed by Ramón Vázquez Torres on February 27, 2007, against the Municipality of Carolina. He alleged that he had entered into a contract to investigate possible debts owed by the Electric Power Authority (AEE) to the municipality. According to Vázquez Torres, his work led to a settlement amounting to over $6 million. He claimed that he was entitled to 10% of this amount, totaling $632,621.47. The municipality contested the claim, denying the existence of any debt and arguing that the amount sought was excessive and against public policy.
The dispute has a long history, with multiple appeals and court rulings. Initially, the lower court dismissed Vázquez Torres's claim in 2013, stating he was not entitled to the contingent fees because the municipality did not benefit from his services. Vázquez Torres appealed this decision, and in 2016, the Supreme Court of Puerto Rico reversed the lower court's ruling, allowing him to present evidence to support his claim. However, after Vázquez Torres's death, his estate continued the legal battle.
In the latest ruling, the Court of Appeals, led by Judge Martínez Cordero, upheld the lower court's decision that the contract was never registered with the Office of the Comptroller, which is a requirement for such contracts to be enforceable. The court stated, "The demand lacks legitimacy due to the failure to register the contract, which is mandated by law." This ruling confirms that without proper registration, the contract cannot be enforced, and thus, the claim for payment is invalid.
The impact of this ruling is significant for contract enforcement in Puerto Rico. It reinforces the legal requirement that contracts with public entities must be registered to be valid. This decision may deter similar claims in the future, as it emphasizes the importance of adhering to procedural requirements in public contracts. It also highlights the necessity for parties engaging in contracts with government entities to ensure compliance with registration laws to protect their interests.
Looking ahead, the estate of Ramón Vázquez Torres may have limited options for appeal, as the Court of Appeals has confirmed the lower court's ruling. There are no indications of related cases pending that could influence this matter. The ruling sets a clear precedent for the enforcement of contracts in Puerto Rico, particularly those involving municipal entities.