By The Star Staff
Puerto Rico’s Court of Appeals on Monday upheld a lower court ruling that rejected the defense arguments presented by the Cooperativa de Seguros Múltiples (CSM) to justify the practice of applying depreciation to replacement parts in vehicle repairs.
“For over a decade, CSM’s practice of automatically applying depreciation to replacement parts has reduced millions of dollars in payments to policyholders,” Francisco Colón Ramírez, an attorney for the plaintiffs said in a written statement. “These deductions have forced consumers to cover expenses that their insurance intended to protect, undermining the very purpose of insurance contracts.”
The court noted that there is no legal basis for CSM’s practices and that the insurer could not prove their legality. The decision could benefit thousands of policyholders if the lawsuit is certified as a class action by the Court of First Instance, allowing affected consumers to claim their rights.
CSM argued that assuming responsibility could compromise its financial stability, while Colón Ramírez stated that “the courts exist to do justice, not to protect entities from the consequences of their own illicit conduct.”
The plaintiffs continue their legal battle to end the practice, which, the lawyer said, is unjustified and contrary to industry standards in the United States.
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