Morales Rivera y otros v. Asociación de Propietarios de la Urbanización Dorado del Mar Hotel & Country Club, Inc. y…

Summary

The Supreme Court of Puerto Rico reversed a Court of Appeals judgment affirming dismissal, under Rule 10.2(5) of Civil Procedure, of villa owners' challenge to a homeowners-association amendment prohibiting short-term rentals in the Dorado del Mar urbanization, and remanded for proceedings on the merits. Applying the pleading standard that takes well-pleaded facts as true, the Court held dismissal was premature because Puerto Rico has not categorically resolved whether short-term rentals alter the residential character of property, and prior dictum suggesting they are commercial use is not precedent. The Court expressly declined to decide the commercial-versus-residential question at this stage. Justice Colón Pérez dissented, urging a merits ruling that short-term rentals constitute commercial use; concurring expressions by Justices Rivera García (joined by Justice Pabón Charneco) and Estrella Martínez agreed with the result while noting the governing question remains open.