The Puerto Rico Court of Appeals has ruled in favor of MCLP Asset Company, Inc. in a mortgage dispute involving the heirs of Blanca María Hernández Calderón. The court's decision, issued on June 4, 2026, confirmed the validity of a previous ruling that allowed MCLP Asset to proceed with the foreclosure of a property in Toa Alta, Puerto Rico. This ruling affects the heirs of Hernández Calderón, who argued that they were not properly notified of the proceedings against them.
The case, known as McLp Asset Company, Inc. v. Blanca María Hernández Calderón T/C/C Blanca M. Hernández Calderón T/C/C Blanca Hernández Calderón Y Otros, was filed under docket number TA2026AP00449. It highlights issues of due process and notification in legal proceedings, particularly in cases involving property disputes and foreclosures.
The dispute began when Legacy Mortgage Asset Trust 2019-PR1 filed a lawsuit against Hernández Calderón and several co-defendants, including her heirs, for the execution of a mortgage on a residential property. The property in question was located in Barrio Contorno, Toa Alta. Following the death of Hernández Calderón, the heirs were substituted into the case. The heirs claimed that they had not been properly notified of the proceedings, which they argued violated their rights.
Initially, the heirs, known as the Cotto-Hernández, sought to nullify the judgment and the subsequent auction of the property, asserting that the notifications sent to them were defective and did not comply with legal standards. They claimed that the addresses used for notifications were incorrect and that they were denied the opportunity to participate in mediation and defend their interests in court.
The case progressed through the lower courts, where the initial ruling favored MCLP Asset. The heirs then appealed to the Court of Appeals, seeking a review of the lower court's decisions. They raised several points of error, arguing that the lower court failed to adequately consider their claims regarding improper notification and lack of jurisdiction.
In its ruling, the Court of Appeals, led by Judge Rodríguez Flores and joined by Judges Cintrón Cintrón and Díaz Rivera, denied the Cotto-Hernández's petition for certiorari. The court stated, "[t]he arguments presented by the defendants do not persuade us to exercise our reviewing function and invalidate a final judgment issued on February 3, 2025." The court upheld the lower court's decision, confirming the validity of the auction and the transfer of the property to MCLP Asset for $11,000.
This ruling has significant implications for the Cotto-Hernández heirs, as it allows MCLP Asset to proceed with the eviction process and take possession of the property. The court's decision underscores the importance of proper notification in legal proceedings, particularly in cases involving property rights.
The ruling also sets a precedent regarding the standards for notification in foreclosure cases. It reinforces the idea that parties must ensure they are reachable and that legal notifications are sent to the correct addresses to avoid complications in future legal proceedings.
Looking ahead, the Cotto-Hernández heirs have the option to appeal the Court of Appeals' decision to the Puerto Rico Supreme Court. However, details about whether they intend to pursue this option were not available in the court filing. The outcome of any potential appeal could further clarify the legal standards surrounding notification and due process in mortgage and foreclosure cases in Puerto Rico.