The Puerto Rico Court of Appeals has denied a request from DCN Administrative & Recycling Corp. to challenge a municipal expropriation. This ruling affects the company and the Municipality of Carolina, which is moving forward with plans to develop public parking and improve access in the area. The decision is significant as it allows the municipality to proceed with its project aimed at benefiting the local community.

The case, Municipio Autónomo De Carolina Representado Por Su Honorable Alcalde, José Carlos Aponte Dalmau v. Dcn Administrative & Recycling Corp. Y Otros, was filed on September 21, 2026, under docket number TA2026CE00957. The court's ruling came after DCN contested the municipality's claim of a public purpose for the expropriation of land located in Barrio Hoyo Mulas, Carolina.

The dispute began when the Municipality of Carolina filed a petition for forced expropriation on May 8, 2025. The municipality aimed to acquire a parcel of land measuring 6,748.83 square feet for the development of parking areas and improvements to access roads. This initiative was authorized by Ordinance No. 22, approved by the Municipal Legislature on the same day. The municipality argued that the expropriation was consistent with the Territorial Plan and did not require further consultation.

DCN, on the other hand, contested the expropriation, claiming it was a result of malicious persecution and harassment by the municipality over the past four years. The company argued that the petition was flawed and that the proposed compensation was unreasonable. In response, the municipality maintained that the project was part of its economic, social, physical, and environmental development plan.

After several legal proceedings, the Court of First Instance ruled on December 15, 2025, in favor of the municipality, declaring it the rightful owner of the property and ordering the title to be registered in its name. Following this, DCN filed an urgent motion on June 18, 2026, challenging the public purpose of the expropriation. The court denied this motion on June 24, 2026, leading DCN to seek a higher review.

On July 23, 2026, DCN filed a petition for certiorari with the Court of Appeals, arguing that the lower court erred in not allowing them to present evidence against the public purpose claimed by the municipality. They contended that the Court of First Instance failed to require the municipality to prove its case adequately.

The court, led by Judge Rodríguez Casillas, reviewed the case and found that the issue of public purpose had already been resolved in the earlier ruling from December 2025. The court stated, "the controversy raised regarding the public purpose was resolved in the resolution notified on December 16, 2025." The court emphasized that there was no evidence suggesting that the lower court had abused its discretion or acted with bias.

As a result, the Court of Appeals denied the request for certiorari, allowing the expropriation process to continue. The ruling effectively removes any obstacles DCN had attempted to place in the way of the municipality's project.

This decision is important for municipalities in Puerto Rico as it reinforces their ability to expropriate land for public projects, provided they can demonstrate a legitimate public purpose. It also highlights the judicial system's role in balancing the interests of private property owners against the needs of the community.

Looking ahead, DCN may consider appealing this decision to the Supreme Court of Puerto Rico, but details regarding any potential appeal were not available in the court filing. Meanwhile, the Municipality of Carolina can proceed with its plans to enhance public infrastructure in the area.