IN RE FINANCIAL OVERSIGHT AND MANAGEMENT BOARD

No. 23-1267, No. 23-1268, No. 23-1358.

77 F.4th 49 (2023)

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 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; 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 of the Puerto Rico Public Buildings Authority, Debtors, The Financial Oversight and Management Board for Puerto Rico, as Representative for the Commonwealth of Puerto Rico, Plaintiff, Appellee, v. Rafael Hernández-Montañez, Defendant, Appellant, Pedro Pierluisi-Urrutia, Defendant, Appellee. 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 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; 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 of the Puerto Rico Public Buildings Authority, Debtors, The Financial Oversight and Management Board for Puerto Rico, as Representative for the Commonwealth of Puerto Rico, Plaintiff, Appellee, v. Pedro Pierluisi-Urrutia, Defendant, Appellant, Rafael Hernández-Montañez, Defendant, Appellee. 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 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; 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 of the Puerto Rico Public Buildings Authority, Debtors, The Financial Oversight and Management Board for Puerto Rico, as Representative for the Commonwealth of Puerto Rico, Plaintiff, Appellee, v. Pedro Pierluisi-Urrutia, Defendant, Appellant, Rafael Hernández-Montañez, Defendant, Appellee.

United States Court of Appeals, First Circuit.

August 10, 2023.


Attorney(s) appearing for the Case

Jorge Martínez-Luciano , with whom Emil Rodríguez-Escudero and M.L. & R.E. Law Firm were on brief, for appellant Rafael Hernández-Montañez.

Matthew P. Kremer and William J. Sushon , with whom John J. Rapisardi , Peter Friedman , O'Melveny & Myers LLP, Luis C. Marini-Biaggi , Carolina Velaz Rivero , and Marini Pietrantoni Muñiz LLC were on brief, for appellant Pedro Pierluisi-Urrutia.

Mark D. Harris and Timothy W. Mungovan , with whom Martin J. Bienenstock , Julia D. Alonzo , Shiloh A. Rainwater , John E. Roberts , Guy Brenner , Shannon D. McGowan , Lucas Kowalczyk , and Proskauer Rose LLP were on brief, for appellee The Financial Oversight and Management Board for Puerto Rico.

Before Kayatta, Lynch, and Howard, Circuit Judges.


In June 2022, the Governor of Puerto Rico signed Act 41-2022 into law, tightening certain labor regulations that had been loosened about five years earlier. The Financial Oversight and Management Board for Puerto Rico (the "Board" or the "Oversight Board") argues that the Governor failed to submit the documentation necessary...

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