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Financial Oversight and Management Bd. for P. R. v. Centro De Periodismo Investigativo, Inc.
598 U.S. 339
| SCOTUS | 2023
Read the full case

Background

  • 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)
Read the full case

Case Details

Case Name: Financial Oversight and Management Bd. for P. R. v. Centro De Periodismo Investigativo, Inc.
Court Name: Supreme Court of the United States
Date Published: May 11, 2023
Citation: 598 U.S. 339
Docket Number: 22-96
Court Abbreviation: SCOTUS