A current federal resolution out of Puerto Rico ought to be a magnet for insurers and public adjusters. In Mapfre Praico Insurance coverage Firm v. Reynolds, 1 the court docket dismissed an insurer’s negligence claims in opposition to a public adjuster and his firms, not as a result of the allegations lacked advantage, however as a result of the claims have been filed too late.
And never simply late—too late by the unforgiving customary of Puerto Rico’s one-year statute of limitations for tort claims.
After Hurricane Maria, the Puerto Rico Freeway and Transportation Authority introduced a considerable declare to its insurer, MAPFRE. The general public adjuster concerned allegedly inflated damages, misrepresented licensing credentials, and pushed the declare towards coverage limits far exceeding what MAPFRE believed was owed. After years of litigation, the underlying declare settled for a fraction of the demanded quantity. MAPFRE then rotated and sued the adjuster and his firms for negligence, arguing that their conduct induced inflated litigation prices and pointless publicity.
The general public adjuster defendants argued that MAPFRE knew of the alleged misconduct nicely earlier than one 12 months previous to submitting go well with. They pointed to MAPFRE’s personal allegations about information of licensing points, consciousness of inflated estimates, and even prior litigation positions asserting misconduct. In brief, they argued that MAPFRE had lengthy been on discover of a possible declare and that MAPFRE didn’t file go well with inside the one-year limitations interval.
MAPFRE responded with a extra nuanced argument. It claimed that its explanation for motion didn’t accrue till the underlying litigation resulted in December 2023, when it may lastly quantify its damages and perceive the complete influence of the alleged misconduct. It relied on doctrines usually utilized in authorized malpractice circumstances, the place claims usually don’t accrue till a remaining judgment is entered.
The court docket discovered that underneath Puerto Rico legislation, a tort declare accrues when the injured occasion is aware of, or ought to know, of the damage and the identification of the one that induced it. Not when damages are totally calculated. The court docket emphasised a precept {that a} plaintiff can’t anticipate damages to succeed in their “remaining diploma of improvement” earlier than submitting go well with. As soon as you’re on discover of a possible declare, the clock begins ticking.
On this case, the court docket discovered that MAPFRE had that discover nicely earlier than the one-year interval. Whether or not the set off date was Might 2022, July 2023, or November 2023, it didn’t matter. Every of these dates fell exterior the permissible window. The criticism, filed in December 2024, was just too late.
What makes this resolution notably instructive is what the court docket rejected. It rejected the concept that negligent misrepresentation claims ought to comply with the accrual guidelines of authorized malpractice. It rejected the notion that damages should be totally quantified earlier than the statute begins to run.
There’s a broader lesson right here for each insurers and policyholders. Within the warmth of complicated claims litigation, events usually deal with profitable the underlying dispute and assume that associated claims might be sorted out later. This case is a reminder that the legislation doesn’t at all times enable that luxurious. Statutes of limitation function independently of litigation technique, and they don’t pause just because a case is ongoing.
For public adjusters, the choice underscores the scrutiny their work can face lengthy after a declare is submitted. Claims of misconduct might be with out advantage however could price dearly to defend. I counsel public adjusters carry vital malpractice protection. For insurers, it highlights the significance of performing promptly when misconduct is suspected.
The court docket didn’t say MAPFRE’s claims lacked substance or have been meritless. It stated MAPFRE waited too lengthy to deliver them. In litigation, well timed submitting go well with is step one.
Thought For The Day
“The legislation helps the vigilant, earlier than those that sleep on their rights.”
— Latin maxim, Fairness helps those that don’t sleep
1 Mapfre Praico Ins. Co. v. ReynoldsNo. 3:24-cv-01557 (D.P.R. Mar. 26, 2026). See additionally, Defendant’s Movement to Dismissand Plaintiff’s Opposition to the Movement to Dismiss.
