Financial Oversight and Management Bd. for P. R. v. Centro De Periodismo Investigativo, Inc.
598 U.S. 339
| SCOTUS | 2023Background
- Congress enacted PROMESA (2016) to address Puerto Rico's fiscal crisis and created the Financial Oversight and Management Board (the Board) as an “entity within the territorial government.”
- PROMESA authorizes Board oversight of Puerto Rico’s fiscal plans and Title III debt-restructuring proceedings (the latter incorporates the Bankruptcy Code, which expressly abrogates sovereign immunity for those cases).
- CPI (a Puerto Rican nonprofit news organization) sought Board records under a Puerto Rico constitutional public‑records right; after the Board refused, CPI sued in the U.S. District Court for Puerto Rico seeking injunctive relief.
- The Board moved to dismiss on sovereign‑immunity grounds; the District Court denied the motion and the First Circuit affirmed, holding PROMESA’s jurisdictional clause (48 U.S.C. §2126(a)) abrogated the Board’s immunity.
- PROMESA contains provisions anticipating suits (§2126(a)–(c)) and also shields (e.g., §2125 limiting monetary liability and §2126(e) precluding certain challenges to Board fiscal decisions).
- The Supreme Court assumed, but did not decide, that the Board enjoys Puerto Rico’s sovereign immunity and held PROMESA does not unmistakably abrogate that immunity outside Title III.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether PROMESA abrogates the Board's sovereign immunity | PROMESA's judicial‑review scheme (esp. §2126(a) & §2126(c)) plus liability limits show Congress intended to subject the Board to suit | PROMESA contains no unmistakable, express abrogation (except Title III via Bankruptcy Code); clear‑statement rule not satisfied | PROMESA does not categorically abrogate the Board's sovereign immunity; clear‑statement rule unmet |
| Whether §2126(a) (jurisdictional grant) alone constitutes a clear statement waiving immunity | §2126(a)’s command that any action against the Board “shall be brought” in the federal district court is an unequivocal authorization to sue | Jurisdictional forum provisions can operate where immunity is waived/abrogated by other laws or voluntarily waived; they do not themselves abrogate immunity | Jurisdictional/ review provisions alone are insufficient to show unmistakable congressional intent to abrogate sovereign immunity |
| Whether the Court should decide if Puerto Rico/the Board actually enjoy sovereign immunity | CPI: Puerto Rico's immunity may not apply in federal court; the Court should resolve antecedent immunity question | Board: it shares Puerto Rico’s immunity; lower courts treated that as settled; abrogation question is dispositive | Court assumed (without deciding) that the Board shares Puerto Rico's immunity and resolved only the abrogation issue |
Key Cases Cited
- Kimel v. Florida Bd. of Regents, 528 U.S. 62 (establishing requirement that Congress make an unmistakably clear statement to abrogate sovereign immunity)
- Dellmuth v. Muth, 491 U.S. 223 (jurisdictional provisions do not by themselves effect abrogation)
- Sossamon v. Texas, 563 U.S. 277 (refusing to read ambiguous statutes as abrogating immunity)
- FAA v. Cooper, 566 U.S. 284 (applying clear‑statement rule to identify abrogation waivers)
- Michigan v. Bay Mills Indian Community, 572 U.S. 782 (same rule applied to Indian tribes)
- Fitzpatrick v. Bitzer, 427 U.S. 445 (Congress may abrogate state immunity when it unmistakably does so)
- Nevada Dept. of Human Resources v. Hibbs, 538 U.S. 721 (statutory cause of action can effect abrogation when it authorizes suit against governments)
- Seminole Tribe of Fla. v. Florida, 517 U.S. 44 (limitations on Congress’s power to abrogate state immunity in certain contexts)
- Blatchford v. Native Village of Noatak, 501 U.S. 775 (jurisdictional/forum provisions insufficient to show waiver/abrogation)
- Ex parte Young, 209 U.S. 123 (permits suit against officials for prospective injunctive relief; relevant to §2126(e) discussion)
- Virginia Office for Protection & Advocacy v. Stewart, 563 U.S. 247 (discussing Ex parte Young and limits around suing officials)
- Puerto Rico v. Sánchez Valle, 579 U.S. 59 (Puerto Rico is a Territory rather than a State; context for immunity discussions)
