The Puerto Rico Court of Appeals has reversed a lower court ruling in a significant mortgage dispute involving Constructora del Río, Inc. and property owners Carlos Armando Avellanet Quiñones and Angelina Torres Negrón. The court's decision, issued on June 30, 2026, could have implications for mortgage enforcement practices in Puerto Rico.
The case centers around a mortgage agreement and allegations of overpayment. Constructora del Río had initially sought to collect a debt from Avellanet Quiñones, claiming he owed $84,269.38 due to missed payments on a mortgage. However, the defendants contended that they had overpaid and were owed $26,782.44 instead. This ruling affects not only the parties involved but also sets a precedent for future mortgage disputes in Puerto Rico.
In December 2023, Constructora del Río filed a lawsuit against Avellanet Quiñones and Torres Negrón, claiming they owed money under a mortgage agreement. The mortgage was secured by a property in Aibonito, Puerto Rico, and the company argued that Avellanet Quiñones had defaulted on his payments. The dispute escalated as the defendants countered with their own claims, asserting that they had paid more than the agreed amount and were entitled to a refund.
The case reached the Court of Appeals after the lower court ruled in favor of the defendants in November 2025, stating that Constructora del Río had overcharged the defendants and owed them money. This prompted Constructora del Río to appeal the decision, seeking a reversal of the lower court's ruling.
The Court of Appeals, led by Judge Díaz Rivera, ultimately reversed the lower court's decision. The court stated, "We find that the evidence presented does not support the lower court's conclusion that the defendants overpaid their mortgage obligations." The judges emphasized the importance of adhering to the original terms of the mortgage agreement and indicated that the defendants had not sufficiently proven their claims of overpayment.
In its ruling, the court highlighted key findings from the lower court's proceedings, including the details of the mortgage agreement and the payments made by the defendants. The court noted that while the defendants claimed to have made substantial payments, the evidence did not conclusively demonstrate that they had overpaid the amount owed under the mortgage.
This ruling has significant implications for the parties involved. For Constructora del Río, the reversal means they may still pursue the original debt owed by Avellanet Quiñones, potentially recovering the full amount claimed. Conversely, for Avellanet Quiñones and Torres Negrón, the decision represents a setback in their efforts to reclaim the alleged overpayment. The ruling may also influence how future mortgage disputes are handled in Puerto Rico, particularly regarding the burden of proof in claims of overpayment.
Looking ahead, it is unclear whether Avellanet Quiñones and Torres Negrón will seek to appeal the decision further. The court's ruling may also prompt other mortgage holders to reassess their agreements and payment records to avoid similar disputes. As the legal landscape continues to evolve, this case will likely serve as a reference point for future mortgage litigation in Puerto Rico.