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, Debtors.
COMMONWEALTH OF PUERTO RICO, through the Secretary of Justice; FINANCIAL OVERSIGHT AND MANAGEMENT BOARD; PUERTO RICO FISCAL AGENCY AND FINANCIAL ADVISORY AUTHORITY, through the Secretary of Justice; PUERTO RICO HIGHWAYS AND TRANSPORTATION AUTHORITY, through the Secretary of Justice; RICARDO ROSSELLO NEVARES, through the Secretary of Justice; RAUL MALDONADO GAUTIER, through the Secretary of Justice; JOSE IVAN MARRERO-ROSADO; JOSE B. CARRION, III; CHRISTIAN SOBRINO VEGA; ANDREW G. BIGGS; CARLOS M. GARCIA; ARTHUR J. GONZALEZ; JOSE R. GONZALEZ; ANA J. MATOSANTOS; DAVID A. SKEEL, JR.; ELIAS SANCHEZ, Defendants, Appellees, AMBAC ASSURANCE CORPORATION, Plaintiff, Appellant, OFFICIAL COMMITTEE OF UNSECURED CREDITORS, Intervenor, JOHN DOES 1-12, Defendants.
FROM THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF
PUERTO RICO Hon. Laura Taylor Swain, U.S. District Judge
Miller, with whom Dennis F. Dunne, Andrew M. Leblanc, Grant
F. Mainland, Milbank, Tweed, Hadley & McCloy LLP, Roberto
A. Cámara-Fuertes, and Ferraiouli LLC were on brief,
C. Ellenberg, Howard R. Hawkins, Jr., Lary Stromfeld, Ellen
V. Holloman, Gillian Groarke Burns, Thomas J. Curtin, Casey
Servais, Cadwalder, Wickersham & Taft LLP, Heriberto
Burgos Pérez, Ricardo F. Casellas-Sánchez,
Diana Pérez-Seda, Casellas Alcover & Burgos, Maria
E. Picó, Rexach & Picó, CSP, Martin A.
Sosland, Jason W. Callen, and Butler Snow LLP on brief for
Assured Guaranty Corporation, Assured Guaranty Municipal
Corporation, and Financial Guaranty Insurance Company, amici
Vincent Levy, Daniel M. Sullivan, Margot Hoppin, Evan H.
Stein, and Holwell Shuster & Goldberg LLP on brief for
Professor John W. Ely, Jr., amicus curiae.
R. Zirinsky and Zirinsky Law Partners LLC on brief for
Representative Rob Bishop, amicus curiae.
J. Bienenstock, with whom Stephen L. Ratner, Mark D. Harris,
Michael A. Firestein, Lary Alan Rappaport, Timothy W.
Mungovan, John E. Roberts, Proskauer Rose LLP, Hermann D.
Bauer-Alvarez, and O'Neill & Borges LLC were on
brief, for appellee Financial Oversight and Management Board
for Puerto Rico.
M. Friedman, with whom Isaías
Sánchez-Báez, Solicitor General of Puerto Rico,
Carlos Lugo-Fiol, John J. Rapisardi, Elizabeth L. McKeen,
Ashley M. Pavel, O'Melveny & Myers LLP, Luis Marini,
and Marini Pietrantoni Muñoz, LLC were on brief, for
appellees the Puerto Rico Fiscal Agency and Financial
Advisory Authority, Christian Sobrino Vega, Ricardo
Rosselló Nevares, Raul Maldonado Gautier, and Jose
Ivan Marrero Rosado.
S. Samson, Riemer & Braunstein LLP, Gregory E. Garman,
Erick T. Gjerdingen, and Garman Turner Gordon LLP on brief
for Congressman Raúl Grijalva, ranking member of the
House Committee on Natural Resources, and Congresswoman Nydia
Velázquez, member of the House Committee on Natural
Resources, amici curiae.
Despins, with whom Nicholas A. Bassett, Paul Hastings LLP,
Juan J. Casillas Ayala, and Casillas, Santiago & Torres
LLC were on brief, for the Official Committee of Unsecured
Creditors of All Puerto Rico Title III Debtors (Other than
Torruella, Lipez, and Kayatta, Circuit Judges.
KAYATTA, CIRCUIT JUDGE.
is a financial guaranty insurer and individual holder of
Puerto Rico Highways and Transportation Authority (HTA)
bonds. In this Title III adversary proceeding arising within
HTA's debt-adjustment proceedings pursuant to the Puerto
Rico Oversight, Management, and Economic Stability Act
(PROMESA), Ambac brings constitutional and statutory
challenges to measures the Commonwealth of Puerto Rico has
taken to block payments to holders of HTA bonds. Because the
Title III court lacks the authority to grant the declaratory
and injunctive relief that Ambac seeks, we affirm the
dismissal of Ambac's claims.
this appeal comes before us from the dismissal of Ambac's
constitutional and statutory claims, "we take as true
the facts presented in [Ambac's] complaint and draw all
reasonable inferences in [its] favor." Maloyv. ...