Financial Oversight and Management Bd. for P. R. v. Centro De Periodismo Investigativo, Inc.

598 U.S. 339
Supreme Court of the United States·Decided May 11, 2023·No. 22-96·Published·Cited by 30 cases

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FINANCIAL OVERSIGHT AND MANAGEMENT BOARD FOR PUERTO RICO v. CENTRO DE PERIODISMO INVESTIGATIVO, INC.

certiorari to the united states court of appeals for the rst 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), 48 U. S. C. § 2101 et seq., to deal with a fscal crisis in Puerto Rico brought about by soaring public debt. PROMESA establishes a system for overseeing Puerto Rico's fnances, while also enabling the Commonwealth to gain bankruptcy protections similar to those available under the Federal Bankruptcy Code. See Financial Oversight and Management Bd. for Puerto Rico v. Aurelius Investment, LLC, 590 U. S. –––, –––. The statute creates the Financial Oversight and Management Board for Puerto Rico—petitioner in this case—as an “entity within the territorial government” of Puerto Rico. § 2121(c)(1). Under PROMESA, the Board approves the Common- Page Proof Pending Publication wealth's fscal plans and budgets, supervises its borrowing, and represents Puerto Rico in so-called Title III cases—judicial debt- restructuring proceedings modeled on federal bankruptcy proceedings. Beginning in 2016, respondent Centro de Periodismo Investigativo, Inc. (CPI)—a nonproft media organization that has reported on Puerto Rico's fscal crisis—asked the Board to release various documents relating to its work. When CPI's requests went unfulflled, it sued the Board in the United States District Court for Puerto Rico, citing a provision of the Puerto Rican Constitution interpreted to guarantee a right of access to public records. The Board moved to dismiss on sovereign immunity grounds, but the District Court rejected that defense. The First Circuit affrmed. The court began by citing Circuit precedent that Puerto Rico enjoys sovereign immunity, and it assumed without deciding that the Board shares in that immunity. But it then held that PROMESA—particularly its jurisdictional provision, Section 2126(a)— clearly abrogates the Board's immunity. 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., 35 U. S. C. § 296(a), and when a statute creates a cause of action and authorizes suit against a government on that claim, see, e. g., Kimel, 528 U. S., at 73–74. PROMESA fts neither of these molds. Except by reference to the Bankruptcy Code in Title III debt-restructuring proceedings, see 11 U. S. C. § 106(a); 48 U. S. C. § 2161(a), PROMESA does not provide that the Board or Puerto Rico is subject to suit. Nor does PROMESA create any cause of action for use against the Board or Puerto Rico. Thus, Congress has not, through a means this Court has recognized, “ma[de] its intention” to abrogate immunity “unmistakably clear.” Kimel, 528 U. S., at 73.

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 Page Proof Pending Publication 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 . 42 U. S. C. §§ 2000e(a)–(b). If a Board employee were fred because of race, Section 2126(a) would tell the employee where to bring the suit and Section 2126(c) would govern the timing of injunctive and declaratory relief. Nor do protections that PROMESA provides the Board from litigation fll the gap. Again, CPI is wrong to think those provisions “superfuous” unless PROMESA generally abrogates the Board's immunity. Section 2125's protection of Board members from monetary liability would do work whenever some other law abrogated or waived the Board's immunity from specifc claims. In such a case, the claim could go forward, but Section 2125 would stop the award of money damages. And Section 2126(e)'s bar on challenges to the Board's fscal and budgetary decisions would do work whenever a plaintiff sought to get around the Board's sovereign immunity via an Ex parte Young action against an individual Board member. See Vir-

ginia Offce for Protection and Advocacy v. Stewart, 563 U. S. 247, 254–255.

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. 345–351. 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., fled a dissenting opinion, post, p. 351.

Mark D. Harris argued the cause for petitioner. With him on the briefs were Martin J. Bienenstock, Shiloh A. Rainwater, Timothy W. Mungovan, John E. Roberts, William D. Dalsen, and Lucas Kowalczyk. Aimee W. Brown argued the cause for the United States as amicus curiae urging vacatur. With her on the brief were Solicitor General Prelogar, Deputy Solicitor General Page Proof Pending Publication Kneedler, and Michael S. Raab.

Sarah M. Harris argued the cause for respondent. With her on the brief were Lisa S. Blatt, Judith Berkan, Rafael E. Rodríguez Rivera, Steven P. Lausell Recurt, Luis J. Torres Asencio, and Carlos F. Ramos-Hernández.* *Briefs of amici curiae urging affrmance were fled for Asociación de Periodistas de Puerto Rico by Ariadna Michelle Godreau Aubert and Verónica González Rodríguez; for Clemente Properties, Inc., et al. by Tanaira Padilla-Rodríguez; for Espacios Abiertos by Brendan Benedict; for GFR Media, LLC, by Rafael Cox Alomar and Pedro Busó-García; for LatinoJustice PRLDEF et al. by Steven A. Zalesin; for Public Citizen by Scott L. Nelson and Allison M. Zieve; for Puerto Rican Legal Scholars by Hiram Meléndez-Juarbe; for the Reporters Committee for Freedom of the Press et al. by Theodore J. Boutrous, Jr., Matthew D. McGill, Amir C. Tayrani, Katherine Moran Meeks, David W. Casazza, and Bruce D. Brown; and for the Speaker of the Puerto Rico House of Representatives by Emil Rodríguez-Escudero and Jorge Martínez-Luciano.

A brief of amici curiae was fled for the Institute for Energy Economics and Financial Analysis et al. by Jessica E. Méndez-Colberg and Rolando Emmanuelli-Jiménez.

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Financial Oversight and Management Bd. for P. R. v. Centro De Periodismo Investigativo, Inc., 598 U.S. 339 (2023).

598 U.S. 339 (Financial Oversight and Management Bd. for P. R. v. Centro De Periodismo Investigativo, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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