WAPA Seeks Stay of Court Order as it Appeals $6.8M Judgment
WAPA has filed an emergency motion in Puerto Rico District Court seeking to stay an order that would see some $6.8 million from its FirstBank account disbursed on Monday to a creditor that sued the utility and won, saying it plans to appeal the decision.
2024-06-28 13:32:26 - VI News Staff
WAPA wants the funds to remain in the bank until its appeal concludes, which could take one to two years, and to forego posting a bond to guarantee the amount “as there is no risk to the parties pending the appeal because the funds are in possession of FirstBank,” according to the motion. If a bond is required, it is asking that the amount be “for very minimal costs” because paying anything will result in a hardship — and possibly rolling blackouts for customers of the cash-strapped utility that is operating under a local State of Emergency.
Power Rental Op Co., LLC sued WAPA in February 2020 in Florida District Court over $14.2 million it alleges was owed under a rental agreement for power generation equipment and water treatment systems. It prevailed and WAPA was ordered to pay $6.5 million and another $349,279 for attorney fees and costs. The company subsequently removed the case to Puerto Rico, where it registered its judgment from Florida in February and in March was granted writs of execution to collect on its debts.