A Puerto Rico court has reversed a lower court's decision regarding a debt settlement case involving Bosco IX Overseas, LLC and the heirs of Ana Vilma Figueroa Román. This ruling affects how debt negotiations and settlements are handled in the future, particularly in cases involving multiple offers and counteroffers.
The Court of Appeals of Puerto Rico issued its ruling on May 28, 2026, in the case titled Bosco IX Overseas, LLC by Franklin Credit Management Corporation as Servicer v. Sucesión De Ana Vilma Figueroa Román T/C/C Ana v. Figueroa Román Compuesta Por Moisés Sierra Figueroa; Noemí Sierra Figueroa T/C/C Mara Noemí Sierra Figueroa; John Doe Y Richard Doe Como Posibles Herederos Desconocidos, with docket number TA2026AP00258. The court's decision has significant implications for both parties involved and for future debt collection cases in Puerto Rico.
Background
The dispute began when Scotiabank of Puerto Rico filed a lawsuit against Ana Vilma Figueroa Román in November 2016, seeking to collect a debt of $356,676.80. The bank claimed that Figueroa Román had failed to make payments on a mortgage loan. After several procedural incidents, the case was transferred to Bosco IX Overseas when Scotiabank assigned the debt to them in 2018.
Following Figueroa Román's death, her heirs, including Moisés Sierra Figueroa and Noemí Sierra Figueroa, became involved in the case. They sought to negotiate a settlement with Bosco IX, making multiple offers to resolve the debt. However, Bosco IX rejected these offers and instead increased the amount owed, leading to further legal disputes.
The Ruling
The Court of Appeals, led by Judge Domínguez Irizarry, reviewed the case and determined that the lower court had erred in concluding that a valid settlement agreement had been reached between the parties. The court stated, "The mere interest of the part appealed in accepting tardily the proposed amount was not enough to conclude that a settlement contract was perfected between the parties."
The court found that Bosco IX's counteroffer of $310,000 was contingent on a 30-day acceptance period, which had expired without any affirmative action from the heirs. The ruling emphasized that for a settlement to be valid, there must be mutual consent and acceptance within the specified timeframe. The court concluded, "The evidence demonstrated that Bosco IX conditioned its counteroffer on a specific term of thirty (30) days, and that the negotiations remained subject to evaluation and potential modifications after that period."
Impact
This ruling has significant implications for debt collection practices and negotiations in Puerto Rico. It clarifies the requirements for a valid settlement agreement, particularly the necessity for timely acceptance of offers. The court's decision reinforces the importance of adhering to specified terms in negotiations, which could affect how creditors and debtors approach settlements in the future.
Furthermore, the ruling may set a precedent for similar cases involving debt negotiations, emphasizing that parties must act within the agreed-upon timeframes to avoid disputes over the validity of contracts. It highlights the need for clear communication and adherence to contractual terms in financial negotiations.
What's Next
The case has been remanded to the lower court for further proceedings in light of the appellate court's decision. The heirs of Ana Vilma Figueroa Román may still pursue negotiations, but they will need to do so within the legal framework established by the court's ruling. It is unclear if either party will appeal the decision further.