Hamdallah v. CPC Carolina PR, LLC, No. 21-1791 (1st Cir. 2024)
United States District Court, D. Puerto Rico.
Khadijah AHMAD HAMDALLAH, Plaintiff, v. CPC CAROLINA PR, LLC, Puerto Rico CVS Pharmacy, LLC, KRB Universal Investments, LLC, Insurance Companies A, B, and C, John Doe, and Jane Doe, Defendants.
Ricardo Nieves Acevedo, Janet Marie Vega Rodriguez, and the conjugal partnership constituted between them, Plaintiffs, v. CPC Carolina PR, LLC, Puerto Rico CVS Pharmacy, LLC, KRB Universal Investments, LLC, Insurance Companies A, B, and C; John Doe, and Jane Doe, Defendants.
Edward Nieves Roman, Plaintiff, v. CPC Carolina PR, LLC, Puerto Rico CVS Pharmacy, LLC, KRB Universal Investments, LLC, Insurance Companies A, B, and C; John Doe, and Jane Doe, Defendants.
María Teresa Cruz Marrero, individually, and the Estate of Ramón Fernández Delgado Composed of Ramón Fernández Cruz, Edgardo José Fernández Cruz, Lisa María Fernández Cruz, Javier Francisco Fernández Cruz, Wanda Ivelisse Fernández Cruz, and María Teresa Cruz Marrero, Plaintiffs, v. CPC Carolina PR, LLC, Puerto Rico CVS Pharmacy, LLC, KRB Universal Investments, LLC, Insurance Companies A, B, and C; John Doe, and Jane Doe, Defendants.
CIVIL ACTION NO. 19-1287-WGY, CIVIL ACTION NO. 19-1288-WGY, CIVIL ACTION NO. 19-1289-WGY, CIVIL ACTION NO. 19-1776-WGY, CIVIL ACTION NO. 18-CV-01555-WGY
Decided: August 20, 2021
Jose L. Novas-Debien, San Juan, PR, for Plaintiff. Arlyn Gonzalez-Diaz, Fernando J. Valderrabano-Marina, Cancio, Nadal, Rivera & Diaz, San Juan, PR, Jesus E. Cuza-Abdala, Rebecca J. Canamero, Holland & Knight LLP, Miami, FL, for Defendants.
In Hamdallah v. CPC Carolina PR, LLC, the United States Court of Appeals for the First Circuit addressed a dispute stemming from a failed commercial real estate transaction in Puerto Rico. The sellers of properties in Valle Arriba Heights had entered into agreements to sell their parcels to KRB Universal Investments, LLC, which subsequently assigned its rights to CPC Carolina PR, LLC (“CPC”). The sale was contingent upon the cancellation of restrictive covenants that limited the property’s use to residential purposes. CPC intended to lease the properties to Puerto Rico CVS Pharmacy, LLC (“CVS”) for commercial use.
However, CVS declined to proceed with the lease due to the restrictive covenants and issues with the title insurance policy. In response, the sellers sued CPC and CVS, alleging negligence. They claimed that they were induced into an impossible contract and that CVS’s actions had contributed to vandalism on the properties.
The district court granted summary judgment in favor of CPC and CVS, dismissing the sellers’ claims. On appeal, the First Circuit affirmed the district court’s decision. The appellate court held that the sellers’ claims were time-barred and that they failed to demonstrate the necessary elements of their negligence claims.
This ruling reinforced the importance of timely legal action and the need for clear evidence to support negligence claims in real estate transactions.
