IN RE FINANCIAL OVERSIGHT & MANAGEMENT BD. FOR PR

No. 18-1773, No. 18-1777.

916 F.3d 98 (2019)

IN RE: the FINANCIAL OVERSIGHT AND MANAGEMENT BOARD FOR PUERTO RICO, as Representative for the Commonwealth of Puerto Rico; the Financial Oversight and Management Board for Puerto Rico, as Representative for the Puerto Rico Highways and Transportation Authority; the Financial Oversight and Management Board for Puerto Rico, as Representative for the Puerto Rico Electric Power Authority (PREPA); the Financial Oversight and Management Board for Puerto Rico, as Representative for the Puerto Rico Sales Tax Financing Corporation, a/k/a Cofina; The Financial Oversight and Management Board for Puerto Rico, as Representative for the Employees Retirement System of the Government of the Commonwealth of Puerto Rico, Debtors. Carlos Méndez-Núñez, in His Official Capacity and on Behalf of the House of Representatives of Puerto Rico, Plaintiff, Appellant, Thomas Rivera-Schatz, in His Official Capacity and on Behalf of the Senate of Puerto Rico, Plaintiff, v. The Financial Oversight and Management Board for Puerto Rico; Jose B. Carrion, III; Andrew G. Biggs; Carlos M. Garcia; Arthur J. Gonzalez; Jose R. Gonzalez; Ana J. Matosantos; David A. Skeel, Jr.; Natalie A. Jaresko, Defendants, Appellees, Commonwealth of Puerto Rico; Puerto Rico Sales Tax Financing Corporation, a/k/a Cofina; Puerto Rico Highways and Transportation Authority; Employees Retirement System of the Government of the Commonwealth of Puerto Rico; Puerto Rico Electric Power Authority (PREPA), Debtors, Appellees. In re: the Financial Oversight and Management Board for Puerto Rico, as Representative for the Commonwealth of Puerto Rico; the Financial Oversight and Management Board for Puerto Rico, as Representative for the Puerto Rico Highways and Transportation Authority; the Financial Oversight and Management Board for Puerto Rico, as Representative for the Puerto Rico Electric Power Authority (PREPA); The Financial Oversight and Management Board for Puerto Rico, as Representative for the Puerto Rico Sales Tax Financing Corporation, a/k/a Cofina; The Financial Oversight and Management Board for Puerto Rico, as Representative for the Employees Retirement System of the Government of the Commonwealth of Puerto Rico, Debtors. Thomas Rivera-Schatz, in His Official Capacity and on Behalf of the Senate of Puerto Rico, Plaintiff, Appellant, Carlos Méndez-Núñez, in His Official Capacity and on Behalf of the House of Representatives of Puerto Rico, Plaintiff, v. The Financial Oversight and Management Board for Puerto Rico; Jose B. Carrion, III; Andrew G. Biggs; Carlos M. Garcia; Arthur J. Gonzalez; Jose R. Gonzalez; Ana J. Matosantos; David A. Skeel, Jr.; Natalie A. Jaresko, Defendants, Appellees, Commonwealth of Puerto Rico; Puerto Rico Sales Tax Financing Corporation, a/k/a Cofina; Puerto Rico Highways and Transportation Authority; Employees Retirement System of the Government of the Commonwealth of Puerto Rico; Puerto Rico Electric Power Authority (PREPA), Debtors, Appellees.

United States Court of Appeals, First Circuit.

February 22, 2019.


Attorney(s) appearing for the Case

Israel Roldán-González for Carlos Méndez-Núñez.

Claudio Aliff-Ortiz , with whom Eliezer Aldarondo-Ortiz , Sheila Torres-Delgado , David Rodríguez-Burns , and Aldarondo & López Bras ALB, were on brief for Thomas Rivera-Schatz.

Timothy W. Mungovan , with whom John E. Roberts , Guy Brenner , Martin J. Bienenstock , Steven L. Ratner , Mark D. Harris , Kevin J. Perra , and Proskauer Rose LLP, were on brief, for the Financial Oversight and Management Board for Puerto Rico; Jose B. Carrion, III; Andrew G. Biggs; Carlos M. Garcia; Arthur J. Gonzalez; Jose R. Gonzalez; Ana J. Matosantos; David A. Skeel, Jr.; Natalie A. Jaresko.

Before Lynch, Circuit Judge, Souter, Associate Justice, and Stahl, Circuit Judge.


These appeals raise several questions about the authority, under the Puerto Rico Oversight, Management and Economic Stability Act (PROMESA), of the Financial Oversight and Management Board for Puerto Rico to develop and certify Fiscal Plans and Territory Budgets for the Commonwealth. 48 U.S.C. §§ 2141-2142. In particular...

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