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Financial Oversight and Management Board for Puerto Rico v. Cooperative de Ahorro y Credito Abraham Rosa, et al.
Paid petition · United States Court of Appeals for the First Circuit, No. 22-1119 · judgment July 18, 2022
Before the decision, about 10× the 4.1% base rate. The model weighted this up for counsel who has won certiorari before, a First Circuit decision below, and a circuit split argued in the petition.
Question presented
The decision below is the first by a circuit court in history to hold that the Constitution prohibits a category of unsecured claims from being discharged in bankruptcy. Specifically, the First Circuit held that unsecured claims for just compensation that arise under the Fifth Amendment’s Takings Clause before bankruptcy cannot be adjusted in a bankruptcy case, even though claims for money damages arising under other constitutional provisions can. The court believed the Takings Clause mandates a remedy and that unique feature renders the remedy non-dischargeable. The First Circuit acknowledged it was creating a split with the Ninth Circuit, which, when faced with the identical question, held that pre-bankruptcy unsecured claims for just compensation are dischargeable. The First Circuit’s novel ruling frustrates both pillars of the Constitution’s bankruptcy power—fresh starts for debtors and equitable treatment of unsecured claimholders. The Question Presented is: Are pre-bankruptcy unsecured claims for just compensation under the Takings Clause uniquely non-dischargeable, unlike every other type of unsecured claim?
Counsel of record
For petitioner
Martin J. Bienenstock
Proskauer Rose LLP
For respondent
Russell A. Del Toro
Russell A. Del Toro Sosa Law Office
Case
Conference history
Distributed for 1 conference
Proceedings
- Feb 21 2023Petition DENIED.
- Jan 25 2023DISTRIBUTED for Conference of 2/17/2023.
- Jan 25 2023Reply of petitioner Financial Oversight and Management Board for Puerto Rico filed. (Distributed)
- Jan 09 2023Brief of respondent United States in opposition filed.
- Jan 09 2023Brief of respondent Suiza Dairy, Corp. in opposition filed.
- Jan 09 2023Brief of respondents Oscar Adolfo Mandry-Aparicio, et al. in opposition filed.
- Dec 13 2022Motion to extend the time to file a response is granted and the time is further extended to and including January 9, 2023, for all respondents.
- Dec 12 2022Motion to extend the time to file a response from December 19, 2022 to January 9, 2023, submitted to The Clerk.
- Nov 07 2022The motions to extend the time to file responses are granted and the time is extended to and including December 19, 2022, for all respondents.
- Nov 04 2022Motion of Oscar Adolfo Mandry-Aparicio, et al. to extend the time to file a response from November 18, 2022 to December 19, 2022, submitted to The Clerk.
- Nov 03 2022Motion of the Solicitor General to extend the time to file a response from November 18, 2022 to December 19, 2022, submitted to The Clerk.
- Oct 17 2022Petition for a writ of certiorari filed. (Response due November 18, 2022)