The Puerto Rico Court of Appeals recently upheld a ruling in the case of Consejo De Titulares Del Condominio Bosque Del Rio v. Multinational Insurance Company, docket number TA2026AP00135. The court's decision affects the Consejo de Titulares, a condominium association, which sought compensation for damages caused by Hurricane María in 2017. The ruling is significant as it clarifies the obligations of insurance companies in handling claims related to natural disasters.
The dispute began when the Consejo de Titulares filed a lawsuit against Multinational Insurance Company in January 2020. They claimed that the insurance company failed to adequately compensate them for damages to their condominium caused by Hurricane María. The association argued that the insurance company did not fulfill its contractual obligations under the insurance policy issued to them. After a lengthy process, the lower court ruled in favor of the Consejo de Titulares, leading Multinational to appeal the decision.
The case made its way to the Puerto Rico Court of Appeals after the lower court, the Tribunal de Primera Instancia, issued a ruling on December 30, 2025. The lower court had accepted a report from a special commissioner who assessed the damages and determined the amount owed to the condominium association. Multinational Insurance Company sought to overturn this decision, arguing that the lower court made several errors in its ruling.
In its ruling, the Puerto Rico Court of Appeals confirmed the lower court's decision, stating, "The determinations of the Special Commissioner were not clearly erroneous and warranted judicial deference." The panel of judges included President Judge Lebrón Nieves, Judge Pagán Ocasio, and Judge Álvarez Esnard. The court found that Multinational Insurance Company failed to meet its obligations under the insurance policy and the Insurance Code.
The court ordered Multinational to pay the amount determined by the Special Commissioner, which was adjusted for inflation and included interest for late payment. The total amount owed to the Consejo de Titulares was calculated to be $2,039,433.46, which included attorney's fees and interest. The ruling emphasized the importance of insurance companies acting in good faith and fulfilling their contractual obligations to policyholders.
This ruling could have significant implications for future insurance claims in Puerto Rico, particularly those related to natural disasters. It reinforces the expectation that insurance companies must thoroughly investigate and respond to claims in a timely manner. The decision may also set a precedent for how similar cases are handled in the future, ensuring that policyholders receive fair compensation for their losses.
Moving forward, Multinational Insurance Company has the option to appeal the ruling to the Puerto Rico Supreme Court. However, there is no indication that a related case is pending at this time. The outcome of this case serves as a reminder of the responsibilities insurance companies hold in protecting their clients and the importance of adhering to contractual agreements.