The Puerto Rico Court of Appeals recently ruled against Chubb Insurance Company of Puerto Rico in a case involving property damage claims made by condominium owner Guillermo J. Ramis. The court's decision, issued on August 21, 2026, is significant as it allows Ramis's lawsuit to proceed, potentially impacting how insurance claims related to property damage are handled in the future.
The case arose from allegations of leaks in Ramis's apartment at the Millenium Condominium, which he claims were caused by negligent repairs following Hurricane MarÃa. Chubb Insurance sought to dismiss the case through a motion for summary judgment, but the lower court denied this request, leading to Chubb's appeal.
Background
Guillermo J. Ramis, the plaintiff in this case, owns an apartment in the Millenium Condominium in San Juan, Puerto Rico. He filed a lawsuit against several parties, including members of the condominium's board, contractors responsible for repairs, and their respective insurance companies. Ramis claimed that following Hurricane MarÃa, the condominium board hired contractors to make necessary repairs, which he alleges were done negligently.
According to Ramis, the negligent repairs led to recurring leaks in his apartment and common areas of the condominium. He initially sought $100,000 for emotional damages and later amended his claim to include $318,715.29 for economic damages. The case was filed in November 2024, and after various legal proceedings, Chubb Insurance filed a motion for summary judgment in January 2026, arguing that the claims were not covered under their insurance policy.
The Ruling
The Puerto Rico Court of Appeals, comprising Judges Sánchez Ramos, Pérez Ocasio, and Trigo Ferraiuoli, reviewed Chubb's appeal after the lower court denied its motion for summary judgment. The court ruled that there were still unresolved issues regarding when the alleged damages occurred and whether they fell within the coverage period of Chubb's insurance policy.
The court stated, "we decline the invitation to intervene with the challenged ruling, as controversies remain regarding the timing of the claimed damages, and we cannot conclude at this stage that the exclusion in the policy related to professional services is applicable here."
The court emphasized that the key factor in determining insurance coverage was the timing of the damage manifestation rather than when the negligent act occurred. The court found that the first leaks in Ramis's apartment occurred in September 2022, during the coverage period of Chubb's policy.
Furthermore, the court examined the applicability of a professional services exclusion in Chubb's policy. It concluded that the work performed by the contractors did not constitute professional services as defined by the policy, allowing Ramis's claims to proceed.
Impact
This ruling has significant implications for both property owners and insurance companies in Puerto Rico. By denying Chubb's request for summary judgment, the court allows Ramis's claims to move forward, which could lead to a trial that may clarify the responsibilities of condominium boards and their insurance providers in similar situations.
The decision also reinforces the notion that insurance coverage may apply based on when damages manifest rather than when the negligent acts occurred. This could set a precedent for future cases involving property damage claims, particularly in the context of natural disasters and subsequent repairs.
What's Next
Chubb Insurance may still appeal the court's decision, as the ruling does not prevent them from contesting the lower court's findings in a future appeal. The case will continue to unfold in the lower court, where Ramis's claims will be further examined.