Autonomous Municipality of Ponce v. Commonwealth of Puerto Rico, No. 18-2194 (1st Cir. 2019)Annotate this Case
The First Circuit affirmed the judgment of the Title III court refusing to lift the automatic stay in PROMESA to allow the Municipality of Ponce to secure specific performance by the Commonwealth of Puerto Rico of public works projects required under a Puerto Rico Commonwealth court judgment, holding that the Title III court did not plainly abuse its discretion.
In 2017, the Commonwealth filed a petition for debt adjustment relief under Title III of the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA), 48 U.S.C. 2101-2241. In 2018, Ponce moved for relief from the automatic stay to secure specific performance by the Commonwealth of public works projects required under a Puerto Rico Commonwealth court judgment. The Title III court refused to lift the automatic stay. The First Circuit affirmed, holding that where Ponce essentially sought priority over the claims of other communities and creditors of the Commonwealth, the Title III court clearly did not abuse its discretion in declining to give Ponce this priority.