Case Brief of Merchant Advance, LLC v. Conceptos Cuisine, LLC et al, 2026 TSPR15
In Merchant Advance, LLC v. Conceptos Cuisine, LLC (2026 TSPR 15), the Supreme Court of Puerto Rico reviewed whether a purchase and sale of future receivables should be treated as the sale of a payment intangible governed by Puerto Rico's Commercial Transactions Act (the "Act"), which largely adopts Article 9 of the Uniform Commercial Code ("UCC"), or construed as a loan subject to Puerto Rico's usury restrictions. The Court was also asked to decide whether enforcing a New York ("NY") choice of law clause in this context would contravene Puerto Rican public policy considerations.
