The Puerto Rico Court of Appeals ruled on June 24, 2026, to uphold the confiscation of a 2023 Mitsubishi Mirage G4 belonging to Popular Auto LLC and insured by Universal Insurance Company. This decision affects the parties involved and underscores the legal framework surrounding vehicle confiscations in Puerto Rico.

The case originated when Popular Auto and Universal Insurance filed an appeal against the Estado Libre Asociado de Puerto Rico after a lower court denied their challenge to the vehicle's confiscation. The vehicle was seized by the Puerto Rican government, which claimed it was used in connection with illegal activities. This ruling is significant as it reaffirms the government’s authority to confiscate property involved in crimes, impacting individuals and businesses alike.

Background

Popular Auto LLC and Universal Insurance Company are the appellants in this case, while the Estado Libre Asociado de Puerto Rico is the appellee. The dispute began on June 27, 2024, when the Puerto Rican government confiscated the Mitsubishi Mirage G4. The vehicle had a lien in favor of Popular Auto and was insured by Universal Insurance.

The appellants argued that the confiscation violated the Uniform Confiscation Law of 2011, claiming they were not notified of the confiscation and that the vehicle was not used for any illegal activity. They also invoked the doctrine of 'innocent third party,' which protects individuals who are not involved in criminal activities related to the confiscated property.

In response, the government maintained that confiscations carry a presumption of legality. The government argued that the appellants failed to demonstrate their standing to challenge the confiscation and that the doctrine of 'innocent third party' did not apply to their case. The lower court held a hearing to determine the appellants' standing and subsequently ruled against them.

The Ruling

The Court of Appeals, led by Judge Robles Adorno, confirmed the lower court's decision, stating, "The appellants did not succeed in rebutting the presumption of legality that protects confiscations under the Uniform Confiscation Law." The court emphasized that the evidence presented did not satisfy the requirements to prove the vehicle was not involved in illegal activities.

The court noted that during the confiscation process, the vehicle was linked to a criminal investigation involving drug offenses. The lower court had found that the vehicle was seized after a trained police dog alerted to the presence of illegal substances, which justified the search and subsequent confiscation.

Impact

This ruling reinforces the government's ability to confiscate property linked to criminal activities in Puerto Rico. It highlights the challenges faced by individuals and businesses when contesting such confiscations. The decision also illustrates the importance of adhering to legal procedures in confiscation cases, as the burden of proof lies with the appellants to demonstrate the illegitimacy of the confiscation.

Moreover, this case may set a precedent for future confiscation disputes, particularly regarding the application of the 'innocent third party' doctrine. It serves as a reminder for vehicle owners and insurers to be vigilant about the legal implications of property used in criminal activities.

What's Next

Details were not available in the court filing regarding whether the ruling can be appealed further. However, the parties involved may explore additional legal avenues or related cases in the future.