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IN RE CORPORACION de SERVICIOS MEDICOS HOSP.

No. 86-1451.

805 F.2d 440 (1986)

In re CORPORACION de SERVICIOS MEDICOS HOSPITALARIOS de FAJARDO, Debtor. CORPORACION de SERVICIOS MEDICOS HOSPITALARIOS de FAJARDO, Plaintiff, Appellee, v. Hon. Luis Izquierdo MORA, etc., et al., Defendants, Appellants.

United States Court of Appeals, First Circuit.

Decided November 10, 1986.

Attorney(s) appearing for the Case

Marcos A. Ramirez Lavandero, with whom Ramirez & Ramirez and Maria Luisa Contreras, Hato Rey, P.R., were on brief, for defendants, appellants.

George A. Davidson, with whom Bradley J. Andreozzi, Hughes Hubbard & Reed, New York City, Virgilio Mendez Cuesta, Rio Piedras, P.R., and Hector Urgell Cuebas, were on brief, for plaintiff, appellee.

Before CAMPBELL, Chief Judge, COFFIN and BOWNES, Circuit Judges.

COFFIN, Circuit Judge.

This case raises important issues of first impression regarding the scope of the police power exception to the Bankruptcy Code's automatic stay and the ability of debtors to assume contracts for the provision of governmental services. 11 U.S.C. §§ 362(b)(4), 365. The Department of Health for the Commonwealth of Puerto Rico ("Department"), represented by Secretary of Health Luis Izquierdo Mora ("Secretary"), appeals the district court...

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