The Puerto Rico Court of Appeals ruled on August 7, 2026, to uphold a previous decision allowing the Municipality of Cayey to expropriate property owned by J.A.C. Manufacturing, Inc. This ruling is significant as it confirms the municipality's authority to acquire land for public use, specifically for expanding a public baseball park. The decision impacts local property owners and sets a precedent for future expropriation cases in Puerto Rico.

The case, docket number TA2026AP00735, began when the Municipality of Cayey, represented by its Mayor Rolando Ortiz Velázquez, filed a petition for forced expropriation on February 29, 2024. The municipality sought to acquire a property located in the Matón neighborhood to improve the Gilberto Rodríguez public baseball park, which included constructing new bleachers and parking facilities. The municipality claimed that this was a public necessity.

The property in question was owned by J.A.C. Manufacturing, Inc., and also involved the Small Business Administration (SBA) as a registered mortgage creditor. The municipality proposed a compensation of $720,000 for the property. However, J.A.C. Manufacturing contested the expropriation, arguing that it did not meet the public necessity requirement and that the proposed compensation was inadequate.

As the case progressed, the SBA indicated that it had no interest in the property since its mortgage had been fully paid off in 1995. J.A.C. Manufacturing filed a response accepting some allegations but denying others, asserting that the municipality had not justified the expropriation and that the property was subject to environmental restrictions. The municipality maintained that it had deposited the compensation amount as required by law.

After several hearings and motions—including requests for the withdrawal of funds—the court ultimately held a trial on April 9, 2026. The trial included testimonies from property appraisers and concluded with a ruling on April 13, 2026, in favor of the municipality. The court found that the property was necessary for public use and ordered the transfer of ownership to the municipality, contingent upon the payment of just compensation.

The court's ruling included twelve factual determinations about the property, including its location, size, and condition. It concluded that the fair market value of the property was $1,499,000, significantly higher than the municipality's initial offer. The court determined that the appropriate depreciation of the property was 45%, contrary to the 68% proposed by J.A.C.'s appraiser.

The court ruled, "the depreciation of the buildings was not as severe as claimed by J.A.C.'s appraiser, and the municipality's valuation was more accurate based on the evidence presented."

In its decision, the court emphasized the importance of just compensation in expropriation cases, stating that it must reflect the market value of the property at the time of taking. The court noted that the municipality had initially deposited $1,035,000 but still owed $464,000 based on the final valuation.

The ruling has significant implications for future expropriation cases in Puerto Rico. It reinforces the municipality's power to acquire private property for public use while ensuring that property owners receive fair compensation. This case may set a precedent for how courts assess property values and depreciation in expropriation proceedings, potentially influencing similar cases across the island.

Looking ahead, the Municipality of Cayey may appeal the decision regarding the depreciation percentage and the overall compensation amount. However, the court's ruling stands as a critical affirmation of the municipality's expropriation authority and the legal framework governing such actions.

Details were not available in the court filing regarding any pending related cases or further appeals.