The Puerto Rico Court of Appeals recently ruled in a significant case involving insurance claims related to damage from Hurricane Maria. The court's decision affects several businesses and property owners who sought compensation from their insurance provider, Mapfre Praico Insurance Company. This ruling clarifies the responsibilities of insurers in handling claims following natural disasters.
The case, filed under docket number TA2026CE00176, involved Villa Blanca Ltd., Almaco Capital Corp., Attenure Holdings Trust 2, and HRH Property Holdings, LLC as the appellants against Mapfre Praico Insurance Company. The dispute centered around the denial of insurance claims for damages caused by Hurricane Maria, which struck Puerto Rico in September 2017. The appellants claimed that Mapfre failed to honor their insurance policy by not providing adequate compensation for the extensive damages to their properties.
The appellants initially filed a lawsuit on September 5, 2019, seeking damages for breach of contract and a declaratory judgment. They alleged that Mapfre refused to pay the insurance benefits owed under the policy, despite acknowledging the damage caused by the hurricane. They requested a total of $2,428,638.14, minus the deductible and previous payments made by Mapfre.
Mapfre responded by denying the allegations and asserting that they handled the claims according to the policy terms. They argued that the appellants' claims were exaggerated and that some damages were not covered under the policy. The case progressed through the courts, leading to a trial held from October 21 to 29, 2025.
On December 9, 2025, the lower court issued a ruling that partially favored the appellants, awarding them $118,256.54 in damages recognized by Mapfre. However, the court also ruled against the appellants on several counts, declaring that Mapfre had not acted in bad faith and that the appellants had not provided sufficient evidence to support their claims for higher damages.
In the recent ruling, the Puerto Rico Court of Appeals upheld the lower court's decision. The court stated, "The evidence presented did not demonstrate that the insurer failed to comply with its obligations during the handling of the claim." The judges on the panel included President Judge Brignoni Mártir, Judge Salgado Schwarz, and Judge Aldebol Mora, who authored the opinion.
The court confirmed the lower court's findings that the appellants did not provide credible evidence to support their claims for higher damages. The judges noted that the testimony from the appellants' expert witnesses was not convincing, and the evidence presented did not substantiate the need for the extensive repairs claimed by the appellants.
The ruling also addressed the issue of costs. The lower court had ordered the appellants to pay Mapfre $141,904.35 in costs and $19,250.00 for attorney's fees incurred after Mapfre made a settlement offer that the appellants did not accept. The appeals court modified this part of the ruling but ultimately upheld the lower court's decision regarding the handling of the insurance claim.
This ruling is significant as it reinforces the standards for proving insurance claims in Puerto Rico, particularly in the context of natural disasters. It clarifies that insurers are not automatically liable for all damages claimed by policyholders and that the burden of proof lies with the insured to demonstrate that their claims are valid and within the coverage of the policy.
The decision impacts not only the parties involved but also sets a precedent for future insurance claims related to natural disasters in Puerto Rico. Property owners and businesses may need to reevaluate their insurance policies and the evidence required to support their claims in the event of similar disasters.
Looking ahead, the appellants have the option to appeal this decision to a higher court, but details about any potential appeal were not available in the court filing. The case highlights the ongoing challenges faced by many in Puerto Rico as they navigate the complexities of insurance claims following devastating hurricanes.