Financial Oversight & Management Board for P.R. v. Hernandez-Montanez, No. 23-1267 (1st Cir. 2023)
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The First Circuit affirmed the judgment of the district court granting summary judgment in favor of the Financial Oversight and Management Board for Puerto Rico on its action against the Governor of Puerto Rico seeking to block the implementation of Act 41-2022, which tightened certain labor regulations that had been loosened about five years earlier, holding that the district court did not err in nullifying the law.
The Board sued to block the enforcement of Act 41-2022, which the Governor signed into law on June 20, 2022, by filing an adversary proceeding in the court overseeing Puerto Rico's bankruptcy process under Title III of the Puerto Rico Oversight, Management, and Economic Stability Act. The Governor moved for judgment on the pleadings on the ground that the court lacked subject matter jurisdiction. The district court denied the Governor's motion and then nullified the law and any actions taken to implement it. The First Circuit affirmed, holding that there was no reason to disturb the court's order nullifying Act 41.
The court issued a subsequent related opinion or order on September 21, 2023.
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