The Puerto Rico Court of Appeals recently upheld a lower court's decision requiring One Alliance Insurance Corporation to pay more than $6.6 million to CCVA, Inc. This ruling stems from damages incurred by CCVA's Gran Caribe Shopping Center during Hurricane Maria in 2017. The decision highlights the responsibilities of insurance companies in handling claims and the legal repercussions of failing to meet those obligations.
On May 26, 2026, the court ruled in the case of CCVA, Inc. v. One Alliance Insurance Corporation, docket number TA2025AP00214. The case is significant as it underscores the legal framework governing insurance claims in Puerto Rico, especially in the wake of natural disasters.
Background
CCVA, Inc. is the owner and operator of the Gran Caribe Shopping Center in Puerto Rico. After Hurricane Maria struck in September 2017, CCVA filed a claim with One Alliance Insurance for damages to the shopping center, which it claimed exceeded $11 million. The insurance policy in question was signed on June 30, 2017, and provided coverage for damages caused by atmospheric events, including hurricanes.
CCVA alleged that after the hurricane, it suffered significant damage, including structural damage and loss of income. They claimed that One Alliance was slow to respond to their claims, only providing a partial payment of $250,000 in March 2018, despite the extensive damages reported. Frustrated by the lack of adequate response, CCVA filed a lawsuit against One Alliance in June 2018, seeking a declaratory judgment, an injunction, and damages for breach of contract.
The case went through various legal proceedings, including a request for a preliminary injunction, which was denied. However, in September 2021, the court ordered One Alliance to pay CCVA an immediate sum of $715,738.60, acknowledging that the insurance company had recognized part of the claim. One Alliance continued to contest the rulings and sought to challenge the lower court's decisions.
The Ruling
In its recent ruling, the Puerto Rico Court of Appeals confirmed the lower court's decision that found One Alliance liable for the damages claimed by CCVA. The court determined that One Alliance had acted in bad faith by delaying the processing of CCVA's claim and failing to provide adequate responses to the insurance claim.
The court stated, "One Alliance had been informed of the claim presented by the appellee after Hurricane Maria, which included the damages and losses suffered, all covered by the subscribed policy, but was not diligent with the claim and caused the delay of the litigation."
In total, the court ordered One Alliance to pay CCVA $3,818,667.62 for damages, $300,000 in legal fees for bad faith, and $2,516,142.72 in legal costs and interest, bringing the total to $6,634,810.34. The panel of judges included President Judge Lebrón Nieves, Judge Adames Soto, and Judge MartÃnez Cordero, with Judge Adames Soto serving as the reporting judge.
Impact
This ruling has significant implications for the insurance industry in Puerto Rico, particularly regarding how claims are handled after natural disasters. It reinforces the idea that insurance companies must act promptly and fairly when processing claims and that failure to do so can lead to severe financial consequences.
Furthermore, the decision may set a precedent for future cases involving insurance claims related to natural disasters. It emphasizes the courts' willingness to hold insurance companies accountable for their actions and ensures that policyholders can seek justice when they believe their claims have been mishandled.
What's Next
One Alliance may seek to appeal the ruling to a higher court, although details on any potential appeal were not available in the court filing. The case underscores the ongoing legal challenges faced by insurance companies in the aftermath of Hurricane Maria, as many claims remain unresolved.