FINANCIAL OVERSIGHT AND MANAGEMENT BOARD FOR PUERTO RICO v. CENTRO DE PERIODISMO INVESTIGATIVO, INC.
No. 22-96
Supreme Court of the United States
May 11, 2023
CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE FIRST CIRCUIT
Syllabus
NOTE: Where it is feasible, a syllabus (headnote) will be released, as is being done in connection with this case, at the time the opinion is issued. The syllabus constitutes no part of the opinion of the Court but has been prepared by the Reporter of Decisions for the convenience of the reader. See United States v. Detroit Timber & Lumber Co., 200 U. S. 321, 337.
SUPREME COURT OF THE UNITED STATES
Syllabus
FINANCIAL OVERSIGHT AND MANAGEMENT BOARD FOR PUERTO RICO v. CENTRO DE PERIODISMO INVESTIGATIVO, INC.
CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE FIRST CIRCUIT
No. 22-96. Argued January 11, 2023—Decided May 11, 2023
In 2016, Congress passed the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA),
Held: Nothing in PROMESA—including its jurisdictional provision, Section 2126(a) categorically abrogates any sovereign immunity the Board enjoys from legal claims. This Court assumes without deciding that Puerto Rico is immune from suit in United States district court, and that the Board partakes of that immunity. See Cutter v. Wilkinson, 544 U. S. 709, 718, n. 7.
This Court has often held that Congress must make its intent to abrogate sovereign immunity “unmistakably clear in the language of the statute.” Kimel v. Florida Bd. of Regents, 528 U. S. 62, 73. The Court has applied that clear-statement rule in cases naming the federal government, States, and Indian tribes as defendants. And it has found that standard met in only two situations: when a statute says, in so many words, that it is stripping immunity from a sovereign entity, e.g.,
CPI claims to identify the required clear statement in PROMESA‘S establishment of a judicial review scheme. Section 2126(a) provides that “any action against the Oversight Board, and any action otherwise arising out of” PROMESA, “shall be brought” in the Federal District Court for Puerto Rico. In CPI‘s view, that provision—especially when combined with Section 2126(c)‘s allusion to “declaratory or injunctive relief against the Oversight Board“—contemplates that the Board would be subject to suit in federal court. But those provisions serve a function even absent a categorical abrogation of immunity, in cases where the Board‘s immunity has been waived or abrogated by other statutes. For example, Title VII of the Civil Rights Act abrogates the immunity of “governments” and “governmental agencies” from all actions it authorizes.
In short, nothing in PROMESA makes Congress‘s intent to abrogate the Board‘s sovereign immunity unmistakably clear. The statute does not explicitly strip the Board of immunity or expressly authorize the bringing of claims against the Board. And its judicial review provisions and liability protections are compatible with the Board‘s generally retaining sovereign immunity. Pp. 5-11.
35 F. 4th 1, reversed and remanded.
KAGAN, J., delivered the opinion of the Court, in which ROBERTS, C. J., and ALITO, SOTOMAYOR, GORSUCH, KAVANAUGH, BARRETT, and JACKSON, JJ., joined. THOMAS, J., filed a dissenting opinion.
NOTICE: This opinion is subject to formal revision before publication in the United States Reports. Readers are requested to notify the Reporter of Decisions, Supreme Court of the United States, Washington, D. C. 20543, pio.supremecourt.gov, of any typographical or other formal errors.
SUPREME COURT OF THE UNITED STATES
No. 22-96
FINANCIAL OVERSIGHT AND MANAGEMENT BOARD FOR PUERTO RICO, PETITIONER v. CENTRO DE PERIODISMO INVESTIGATIVO, INC.
ON WRIT OF CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE FIRST CIRCUIT
[May 11, 2023]
JUSTICE KAGAN delivered the opinion of the Court.
A recently enacted federal statute establishes a financial oversight board within the Commonwealth of Puerto Rico‘s government. The question presented is whether the statute categorically abrogates (legalspeak for eliminates) any sovereign immunity the board enjoys from legal claims. We hold it does not. Under long-settled law, Congress must use unmistakable language to abrogate sovereign immunity. Nothing in the statute creating the board meets that high bar.
I
Congress passed the Puerto Rico Oversight, Management, and Economic Stability Act of 2016 (PROMESA),
PROMESA creates, as its centerpiece, the Financial Oversight and Management Board for Puerto Rico—the petitioner here. The statute describes the seven-member Board as an “entity within the territorial government” of Puerto Rico.
With one exception, PROMESA says nothing explicit about abrogating sovereign immunity. The exception is for Title III cases, and comes via the Federal Bankruptcy Code. PROMESA incorporates, as part of its mechanism for restructuring debt, the Code‘s express abrogation of sovereign immunity. See
At the same time, several provisions of PROMESA contemplate that, even outside the Title III context, the Board may confront legal claims against it. Most fundamentally,
On the flipside, PROMESA sets certain limits on litigation targeting the Board. Section 2125 forecloses monetary liability against the Board, its members, and its employees for “actions taken to carry out” the statute. And Section 2126(e) provides that no district court will have jurisdiction over challenges to the Board‘s “certification determinations“—mainly, decisions approving Puerto Rico‘s fiscal plans and budgets. See
The suit before us demands that the Board release various documents relating to its work. Respondent Centro de Periodismo Investigativo, Inc. (CPI) is a nonprofit media organization that has published many reports on Puerto Rico‘s fiscal crisis and the debt-restructuring process. In 2016, CPI asked the Board to turn over a broad array of materials, including communications between the Board‘s members and Puerto Rican and U. S. officials. When the request went unanswered, CPI sued the Board in the Federal District Court in Puerto Rico. CPI cited a provision of the Puerto Rican Constitution interpreted to guarantee a right of access to public records. And it requested an injunction ordering the records’ release.
The Board moved to dismiss the suit on the ground that,
The Court of Appeals for the First Circuit affirmed the denial of immunity, over a dissent. See 35 F. 4th 1 (2022). The court began by citing Circuit precedent that Puerto Rico (like a State or Indian tribe) enjoys sovereign immunity. It then “assume[d] without deciding” that the Board shares in Puerto Rico‘s immunity, noting that CPI had not contested that issue. Id., at 15. That was the Board‘s final piece of good news—for the court next held that PROMESA abrogates the Board‘s (assumed) immunity. Congress may abrogate sovereign immunity, the court noted, “by making its intention unmistakably clear in the language of the statute.” Ibid. (quoting Kimel v. Florida Bd. of Regents, 528 U. S. 62, 73 (2000)). And Congress had done so, the court held, in Section 2126(a): The “grant of jurisdiction” there “unequivocally stated [Congress‘s] intention that the Board could be sued” in federal district court. 35 F. 4th, at 17. The court found additional support for its holding in Sections 2126(c) and (e). The former, the court reasoned, “contemplates” orders of “declaratory and injunctive relief” against the Board. Ibid. And the latter, in making certification challenges unreviewable, “implies” that all other claims against the Board fall within Section 2126(a)‘s scope. Ibid. Judge Lynch disagreed. She would have held that Congress had not adequately “set[] forth an intent to abrogate” the Board‘s immunity, whether in Section 2126(a)‘s jurisdictional grant or in any other provision. Id., at 21.
II
The question on which we granted certiorari is whether PROMESA—and particularly its jurisdictional provision—abrogates the Board‘s immunity. See Brief for Oversight Board i. As thus framed, the question asks only about abrogation, while taking the Board‘s underlying immunity as a given. That framing accords with how this case played out in the courts below. Because Circuit precedent had settled Puerto Rico‘s own immunity, the lower courts barely addressed the question. See, e.g., 35 F. 4th, at 13-14. Similarly for the Board‘s immunity. CPI never argued that the Commonwealth‘s immunity did not extend to the Board; and for that reason, the courts below simply assumed the Board‘s immunity before turning to the abrogation issue. See, e.g., id., at 14-15. We took the case on those terms, and we resolve it on those terms. See, e.g., Cutter v. Wilkinson, 544 U. S. 709, 718, n. 7 (2005) (“[W]e are a court of review, not of first view“). That means we assume without deciding that Puerto Rico is immune from suit in federal district court, and that the Board partakes of that immunity. We address only whether, accepting those premises, PROMESA effects an abrogation.2
PROMESA fits neither of those two molds. Except in Title III debt-restructuring proceedings (not at issue here), the statute does not provide that the Board or Puerto Rico is subject to suit. See supra, at 2. And indeed, the exception
CPI contends we can still find a clear statement in PROMESA, based on the statute‘s establishment of a judicial review scheme. The primary provision in CPI‘s argument (as in the First Circuit‘s, see supra, at 4) is Section 2126(a): “[A]ny action against the Oversight Board, and any action otherwise arising out of” PROMESA, “shall be brought” in the Federal District Court for Puerto Rico. In CPI‘s view, that provision—especially when combined with Section 2126(c)‘s allusion to “declaratory or injunctive relief against the Oversight Board“—expresses Congress‘s “clear intent to subject the Board to suit in federal court.” Brief for CPI 16. CPI backs up that argument by pointing to pro-
But all those provisions serve a function without our reading an abrogation of immunity into PROMESA. In Sections 2126(a) and (c), Congress indeed contemplated the possibility of suits—and of relief—against the Board. And wisely so—because litigation against the Board can arise even though the Board enjoys sovereign immunity generally. For one thing, statutes other than PROMESA abrogate the Board‘s immunity from particular claims. See generally supra, at 7. Consider Title VII of the Civil Rights Act, prohibiting various kinds of employment discrimination. That law, this Court has held, validly abrogates the immunity of “governments” and “governmental agencies” from all actions it authorizes.
In short, nothing in PROMESA makes Congress‘s intent to abrogate the Board‘s sovereign immunity “unmistakably clear.” Kimel, 528 U. S., at 73. The statute does not explicitly strip the Board of immunity. It does not expressly authorize the bringing of claims against the Board. And its
It is so ordered.
THOMAS, J., dissenting
SUPREME COURT OF THE UNITED STATES
No. 22-96
FINANCIAL OVERSIGHT AND MANAGEMENT BOARD FOR PUERTO RICO, PETITIONER v. CENTRO DE PERIODISMO INVESTIGATIVO, INC.
ON WRIT OF CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE FIRST CIRCUIT
[May 11, 2023]
JUSTICE THOMAS, dissenting.
At every stage of these proceedings, respondent has argued that petitioner lacks state sovereign immunity. Petitioner has consistently replied that it has that immunity and that nothing abrogates it. The courts below, bound by Circuit precedent, held that petitioner does have state sovereign immunity—but they also held that the immunity has been abrogated. The Court today disagrees with only that latter conclusion, holding that nothing abrogates petitioner‘s immunity, but it “assume[s] without deciding” the logically antecedent question whether petitioner enjoys that immunity in the first place. Ante, at 5. In doing so, the majority effectively decides the outcome of this case. Because I would reach the antecedent question and hold that petitioner lacks the only immunity it has ever asserted, I respectfully dissent.
Respondent, Centro de Periodismo Investigativo, Inc. (CPI), sued petitioner, the Financial Oversight and Management Board for Puerto Rico, over a document-disclosure dispute. The Board moved to dismiss the lawsuit by invoking state sovereign immunity, which the Board claimed to possess as an arm of the Puerto Rican territorial government. CPI responded (both in the District Court and on appeal) that Puerto Rico has no such immunity and that, even
When the Board asked us to review that holding, CPI once again raised its lead argument, pointing out that we logically could not reverse the First Circuit‘s judgment without first addressing whether the Board actually has the immunity that the Board claims has not been abrogated. And, in its merits brief, CPI made Puerto Rico‘s lack of state sovereign immunity its lead argument. There is nothing more that CPI could have done to preserve this antecedent, dispositive argument.
Yet the majority skips it entirely, “assum[ing] without deciding that Puerto Rico is immune from suit in federal district court“—while also deciding that PROMESA does not abrogate that assumed immunity. Ante, at 5. In doing so, it effectively consigns CPI‘s case to the dustbin, remanding back to a Circuit where Circuit precedent will dictate the outcome. CPI might be forgiven for wondering whether we granted certiorari only insofar as our review would favor the Board.
The majority asserts that it need not address CPI‘s argument because “[t]he proceedings below did not examine these matters, and we agreed to tackle only the abrogation question.” Ibid. But it is unclear why the court below would have examined the matter any further, given its precedent.1
From the start, the Board has asserted only that it possesses what it has called “Eleventh Amendment immunity.” The First Circuit agreed, explaining that it “has long treated Puerto Rico like a state for Eleventh Amendment purposes.” 35 F. 4th, at 14. However, the plain text of the Eleventh Amendment applies only to lawsuits brought against a State by citizens of another State. And, because CPI is a resident of Puerto Rico, I can only assume that the Board and the First Circuit meant to refer to the sovereign immunity that is inherent in the 50 States. See Allen v. Cooper, 589 U. S. ___, ___ (2020) (slip op., at 4).
As we have explained, inherent state sovereign immunity reflects the original design of the Constitution. See Franchise Tax Bd. of Cal. v. Hyatt, 587 U. S. ___, ___ (2019) (slip op., at 5-12). At the Founding, the “States considered
Here, however, all sides agree that Puerto Rico is a Territory, not a State. See Puerto Rico v. Sánchez Valle, 579 U. S. 59, 75-77 (2016). Accordingly, it is difficult to see how the same inherent sovereign immunity that the States enjoy in federal court would apply to Puerto Rico. To be sure, the United States has urged us to hold that Puerto Rico enjoys a form of common-law immunity that, it claims, territorial governments can invoke in federal court. See Brief for United States as Amicus Curiae 16-19. But the Board has, at every stage, argued only that it possesses the same immunity as States. That argument appears untenable.
I respectfully dissent.
