Pierluisi v. Financial Oversight & Management Board for Puerto Rico, No. 21-1071 (1st Cir. 2022)Annotate this Case
The First Circuit affirmed the judgment of the district court rejecting Appellants' argument that the Financial Oversight and Management Board for Puerto Rico acted arbitrarily and capriciously in objecting to four laws enacted by the Puerto Rico legislature, holding that there was no error or abuse of discretion.
In legislation addressing Puerto Rico's fiscal crisis, the Board was given the authority to object to and block the implementation of local laws that are "significantly inconsistent" with efforts to the Commonwealth to fiscal solvency. The Commonwealth filed suit in 2020 seeking a declaration that, for each of the four laws in question, the Commonwealth had complied with federal compliance certification requirements. The Board filed counterclaims requesting injunctive relief barring the implementation and enforcement of each law. The district court upheld the laws. The First Circuit affirmed, holding that the Board did not act arbitrarily and capriciously in exercising its authority under the Puerto Rico Oversight, Management, and Economic Stability Act.