The Court of Appeals of Puerto Rico has upheld a ruling against SP Construction Group LLC, ordering the company to pay $12,500 to homeowner Blake Reyes for unfinished construction work. This decision, made on April 24, 2026, affects both the construction industry and consumers in Puerto Rico, emphasizing the importance of contractual obligations and consumer rights.
The case began when Blake Reyes hired SP Construction in February 2022 for various home repairs, including fixing roof cracks and remodeling his bathroom. After paying a total of $4,500 for the initial work, Reyes contracted SP Construction for additional projects, which included extensive renovations throughout his home. However, after making full payments, Reyes alleged that the company failed to complete the work and stopped showing up for scheduled jobs.
In December 2023, Reyes filed a complaint against SP Construction with the Department of Consumer Affairs (DACo), claiming that the company had not fulfilled its contractual obligations. The DACo conducted an administrative hearing in October 2025, where both Reyes and Santiago Prado, the owner of SP Construction, testified. The DACo found that SP Construction had indeed failed to complete the work and ordered the company to pay Reyes for the damages incurred.
On November 6, 2025, DACo issued a resolution confirming Reyes's complaint, stating that SP Construction had not only failed to finish the contracted work but also showed no intention of doing so. The DACo estimated the cost to correct the deficiencies at $12,500, which included materials and labor. SP Construction appealed this decision, arguing that the DACo had erred in its findings and the amount of compensation.
The Court of Appeals, led by Judge Cintrón Cintrón and joined by Judges RodrÃguez Flores and DÃaz Rivera, reviewed the case. The court stated, "The agency concluded that the contract was perfected and that Reyes had made all the payments, but SP Construction failed to fulfill its obligations." The court emphasized that it would defer to the DACo's findings unless they were arbitrary or unreasonable.
In its ruling, the court noted that SP Construction's arguments against the DACo's decision were not sufficient to overturn the findings. The court highlighted that the agency's conclusions were based on substantial evidence, including inspection reports that detailed the unfinished work and the poor condition of the property. The court stated, "The agency's decision was reasonable and made under the appropriate doctrinal framework."
This ruling reinforces the authority of consumer protection agencies in Puerto Rico and underscores the importance of contractors fulfilling their obligations. It also serves as a reminder to consumers to document their agreements and ensure that work is completed as promised.
The impact of this ruling extends beyond the parties involved. It sets a precedent for future cases involving contractor disputes in Puerto Rico, emphasizing that contractors must adhere to their agreements or face legal consequences. Consumers can take comfort in knowing that the courts support their rights to receive the services they have paid for.
Looking ahead, SP Construction may consider appealing this decision to a higher court, but details on any potential appeal were not available in the court filing. Meanwhile, the ruling stands as a significant affirmation of consumer rights in the construction industry.