A current federal determination out of Puerto Rico ought to be a focus for insurers and public adjusters. In Mapfre Praico Insurance coverage Firm v. Reynolds, 1 the courtroom dismissed an insurer’s negligence claims in opposition to a public adjuster and his firms, not as a result of the allegations lacked benefit, 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 circled and sued the adjuster and his firms for negligence, arguing that their conduct precipitated inflated litigation prices and pointless publicity.
The general public adjuster defendants argued that MAPFRE knew of the alleged misconduct nicely earlier than one yr previous to submitting swimsuit. 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 swimsuit inside the one-year limitations interval.
MAPFRE responded with a extra nuanced argument. It claimed that its reason behind motion didn’t accrue till the underlying litigation led to December 2023, when it may lastly quantify its damages and perceive the complete affect of the alleged misconduct. It relied on doctrines sometimes utilized in authorized malpractice instances, the place claims typically don’t accrue till a last judgment is entered.
The courtroom discovered that below Puerto Rico regulation, a tort declare accrues when the injured social gathering is aware of, or ought to know, of the damage and the id of the one who precipitated it. Not when damages are totally calculated. The courtroom emphasised a precept {that a} plaintiff can’t look ahead to damages to succeed in their “last diploma of growth” earlier than submitting swimsuit. As soon as you’re on discover of a possible declare, the clock begins ticking.
On this case, the courtroom 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 outdoors the permissible window. The criticism, filed in December 2024, was just too late.
What makes this determination notably instructive is what the courtroom rejected. It rejected the concept negligent misrepresentation claims ought to comply with the accrual guidelines of authorized malpractice. It rejected the notion that damages have to 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 typically give attention to successful the underlying dispute and assume that associated claims will be sorted out later. This case is a reminder that the regulation doesn’t all the time 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 will be with out benefit however could value dearly to defend. I counsel public adjusters carry important malpractice protection. For insurers, it highlights the significance of performing promptly when misconduct is suspected.
The courtroom 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 swimsuit is step one.
Thought For The Day
“The regulation helps the vigilant, earlier than those that sleep on their rights.”
— Latin maxim, Vigilantibus non dormientibus aequitas subvenit
1 Mapfre Praico Ins. Co. v. Reynolds, No. 3:24-cv-01557 (D.P.R. Mar. 26, 2026). See additionally, Defendant’s Movement to Dismiss, and Plaintiff’s Opposition to the Movement to Dismiss.