LEX CLAIMS v. FINANCIAL OVERSIGHT & MANAGEMENT

No. 17-1241, No. 17-1248, No. 17-1272.

853 F.3d 548 (2017)

LEX CLAIMS, LLC et al., Plaintiffs, Appellees, v. FINANCIAL OVERSIGHT AND MANAGEMENT BOARD, Intervenor, Appellant, Alejandro García-Padilla et al., Defendants. Lex Claims, LLC et al., Plaintiffs, Appellees, v. Jose F. Rodriguez et al., Intervenors, Appellants, Alejandro García-Padilla et al., Defendants. Lex Claims, LLC et al., Plaintiffs, Appellees, v. Ambac Assurance Corporation, Defendant, Appellant, Alejandro García-Padilla et al., Defendants.

United States Court of Appeals, First Circuit.

April 4, 2017.


Attorney(s) appearing for the Case

Michael Luskin , with whom Stephan Hornung and Luskin, Stern & Eisler LLP, New York, NY, were on brief, for appellant Financial Oversight and Management Board.

Susheel Kirpalani , New York, NY, with whom David Cooper , Daniel Salinas-Serrano , Washington, DC, Darren M. Goldman , Daniel P. Mach , New York, NY, Quinn Emanuel Urquhart & Sullivan LLP, Rafael Escalera , Sylvia M. Arizmendi , Carlos R. Rivera-Ortiz , and Reichard & Escalera, San Juan, PR, were on brief, for appellants Jose F. Rodriguez, Decagon Holdings 2, LLC, Decagon Holdings 1, LLC, Decagon Holdings 3, LLC, Decagon Holdings 4, LLC, Decagon Holdings 5, LLC, Decagon Holdings 6, LLC, Decagon Holdings 7, LLC, Decagon Holdings 8, LLC, Decagon Holdings 9, LLC, Decagon Holdings 10, LLC, Golden Tree Asset Management LP, Merced Capital, LP, Old Bellows Partners LLP, Scoggin Management LLP, Taconic Master Fund 1.5 LP, Taconic Opportunity Master Fund LP, Tilden Park Capital Management LP, Whitebox Advisors LLC, Varde Credit Partners Master, LP, Varde Investment Partners, LP, Varde Investment Partners Offshore Master, LP, and Varde Skyway Master Fund, LP.

Dennis F. Dunne , New York, NY, with whom Andrew M. Leblanc , Washington, DC, Atara Miller , Grant R. Mainland , Milbank, Tweed, Hadley & McCloy, LLP, Roberto A. Cámara-Fuertes , and Ferraiuoli LLC were on brief, for appellant Ambac Assurance Corporation.

Mark T. Stancil , with whom Ariel N. Lavinbuk , Donald Burke , and Robbins, Russell, Englert, Orseck, Untereiner & Sauber LLP, Washington, DC, were on brief, for appellees.

Before Howard, Chief Judge, Lynch and Barron, Circuit Judges.


This is our second set of appeals involving the automatic stay provision of the Puerto Rico Oversight, Management, and Economic Stability Act ("PROMESA"), see 48 U.S.C. §§ 2101-2241, which employs language very similar to that of the bankruptcy stay statute. For additional background, we refer the reader to...

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