In a recent decision, the Court of Appeals of Puerto Rico modified a ruling regarding a property contract dispute. The case involved María Del Carmen Colón Rivera, Augusto Villegas Márquez, and their jointly owned property company against Universal Properties Realty Government Service, LLC. The court's decision impacts how municipalities handle property contracts and their responsibilities in such disputes.

The dispute began when Colón Rivera and Villegas Márquez attempted to purchase a property under a program managed by the Municipality of Caguas. They paid $55,000 to Universal Properties for the property, but the sale fell through because the property belonged to someone else. The plaintiffs claimed damages for breach of contract, leading to a court case.

Details about the case reached the Court of Appeals after the Court of First Instance in Caguas ruled in favor of the plaintiffs on May 16, 2025. The lower court ordered Universal Properties to pay $100,000 in damages to the plaintiffs, holding the Municipality of Caguas jointly responsible for the actions of its contractor, Universal Properties. The Municipality appealed this ruling, claiming that it had not been properly notified of the lawsuit.

The Court of Appeals, led by Judge Díaz Rivera and joined by Judges Cintrón Cintrón and Rodríguez Flores, reviewed the case. The court found that the lower court had made errors in its ruling. Specifically, the court noted, "the Municipality was not properly included in the lawsuit, and therefore, it should not be held liable for the actions of Universal Properties." The Appeals Court confirmed the lower court's ruling against Universal Properties but eliminated the Municipality's liability.

This ruling clarifies the responsibilities of municipalities in property contract disputes. It emphasizes the importance of proper notification procedures when a municipality is involved in legal actions. The court highlighted that the requirement for written notification to the municipality is crucial for establishing jurisdiction in such cases.

Going forward, this decision may influence how municipalities and contractors conduct property transactions. It sets a precedent that municipalities cannot be held liable for actions they were not properly notified of, potentially changing how future cases are handled. This ruling also serves as a reminder for property buyers to ensure that all necessary legal steps are followed when entering into contracts.

As for next steps, the Municipality of Caguas may consider appealing the decision further. However, details regarding any related cases or additional appeals were not available in the court filing.