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LUMA Energy Enlists Former Puerto Rico Supreme Court Justices in Contract Dispute With Government

LUMA Energy has enlisted two former Puerto Rico Supreme Court justices as part of its legal team in the ongoing dispute over the future of its contract with the Puerto Rico government.

Goverment·By Caribbean Business Staff··2 min read
LUMA Energy Enlists Former Puerto Rico Supreme Court Justices in Contract Dispute With Government
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San Juan — LUMA Energy appeared Tuesday in Puerto Rico’s Court of First Instance with a legal team that includes two former Puerto Rico Supreme Court justices as it fights the government’s effort to terminate its contract to operate and maintain the island’s electric transmission and distribution system.

Court filings identify former Associate Justice Edgardo Rivera García and former Chief Justice Federico Hernández Denton as part of LUMA’s legal representation.

Also listed on the filing are attorneys José A. Andréu Fuentes, Frank Torres-Viada, Mariana Muñiz Lara, Jacabed Rodríguez Coss, Jan M. Albino López and Emmanuel Porro González of DLA Piper Puerto Rico.

The filing comes after U.S. District Judge Laura Taylor Swain returned the cases to Puerto Rico courts, where the government is seeking to invalidate the extension of LUMA’s supplemental contract.

LUMA requested that two lawsuits filed in the San Juan Court of First Instance be consolidated, arguing that they involve nearly identical facts and legal issues.

One lawsuit was filed by the Puerto Rico Public-Private Partnerships Authority and the Puerto Rico Electric Power Authority (PREPA). The second was filed by Gov. Jenniffer González Colón and the Government of Puerto Rico.

According to LUMA, both cases center on whether the court should declare null and void the extension letter executed on Nov. 30, 2022, between LUMA, the Public-Private Partnerships Authority and PREPA.

The company argued that maintaining separate proceedings would result in unnecessary duplication of efforts and increased legal costs.

LUMA also disclosed that it has filed claims and a countersuit in response to the government’s legal action.

The company alleges that the government is using public funds to fulfill a campaign promise and challenge its own prior decisions regarding the 2022 supplemental agreement.

LUMA further contends that terminating the agreement could cost Puerto Rico at least $4.5 billion in damages and operational expenses.

The company also argued that the government has yet to present an alternative plan to ensure the continued operation and maintenance of the island’s transmission and distribution system.

“We will pursue this legal battle to defend our nearly 1.5 million customers while remaining focused on transforming Puerto Rico’s electric system,” LUMA said in a written statement.

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