Corporacion de Servicios v. Commonwealth of Puerto Rico, No. 19-1202 (1st Cir. 2020)Annotate this Case
Given the fundamental change in the facts of this case since the appeal was first filed and briefed the First Circuit remanded this action to the district court for reconsideration of its ruling dismissing the claims as unripe.
In 2017, two groups of health centers filed adversary complaints in the Financial Oversight and Management Board's Title III case seeking a declaration that their claims against the Commonwealth seeking to collect payments under federal Medicaid law were non-dischargeable under PROMESA and that those claims may not otherwise be impaired in any matter. The magistrate judge recommended that the complaints be dismissed without prejudice as unripe. The district court held that Appellants' requests for declaratory relief were not ripe for review because there was no evidence that the Commonwealth would seek to discharge or impair their claims through the Title III proceeding. After the health centers appealed and the appeal was briefed, circumstances materially changed because the Commonwealth filed an amended proposed plan of adjustment. The First Circuit remanded the case to the district court for reconsideration of its ripeness ruling in light of the changed circumstances and any other matters the court deemed relevant.