Tirado-Velez v. Puerto Rico Electric Power Authority

CourtDistrict Court, D. Puerto Rico
DecidedAugust 17, 2022
Docket3:21-cv-01583
StatusUnknown

This text of Tirado-Velez v. Puerto Rico Electric Power Authority (Tirado-Velez v. Puerto Rico Electric Power Authority) is published on Counsel Stack Legal Research, covering District Court, D. Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Tirado-Velez v. Puerto Rico Electric Power Authority, (prd 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF PUERTO RICO JEANNETTE TIRADO-VÉLEZ

Debtor

JEANNETTE TIRADO-VÉLEZ

Plaintiff-Appellant CIVIL NO. 21-1583 (RAM)

v.

PUERTO RICO ELECTRIC POWER AUTHORITY; PUERTO RICO PUBLIC-PRIVATE PARTNERSHIP AUTHORITY; LUMA ENERGY, LLC; LUMA ENERGY SERVCO, LLC; QUANTA SERVICES, INC.

Defendants-Appellees

OPINION AND ORDER1 RAÚL M. ARIAS-MARXUACH, United States District Judge Pending before the Court is Debtor and Plaintiff-Appellant Jeannette Tirado-Vélez’s (“Tirado-Vélez” or “Appellant”) appeal from the United States Bankruptcy Court for the District of Puerto Rico’s (the “Bankruptcy Court”) order denying Appellant’s Motion for Reconsideration. (Bankruptcy Docket Nos. 84 and 88; Docket No.

1 Andrew Grant, a rising second-year law student at the Boston University School of Law, assisted in the preparation of this Opinion and Order. 8).2 The Defendants-Appellees (“Appellees”) in this proceeding are the Puerto Rico Electric Power Authority (“PREPA”); the Puerto Rico Public-Private Partnership Authority (“P3”); LUMA Energy, LLC

and LUMA Energy Servco, LLC (together, “LUMA”); and Quanta Services, Inc. (“Quanta”). (Docket Nos. 8, 14, 19, 21 and 23). Appellant filed her Motion for Reconsideration after the Bankruptcy Court entered its judgment dismissing with prejudice her Amended Complaint in its entirety, having previously granted PREPA and LUMA’s Motion for Summary Judgment as to Amended Complaint as well as P3’s Motion to Abstain and Quanta’s Motion to Dismiss. (Bankruptcy Docket Nos. 67, 72, 75, 76, and 84). Appellees P3 and Quanta now seek dismissal of Appellant’s appeal, while Appellees PREPA and LUMA seek affirmance of the Bankruptcy Court’s order. (Docket Nos. 8, 14, 19, 21 and 23). For the reasons set forth below, this Court GRANTS P3’s Motion to Dismiss, GRANTS Quanta’s Motion to Dismiss, and AFFIRMS the Bankruptcy Court’s

orders that have been properly raised on appeal. I. PROCEDURAL BACKGROUND On March 22, 2021, Tirado-Vélez filed a complaint (the “Complaint”) commencing the Bankruptcy Court adversary proceeding below. (Bankruptcy Docket No. 1). Tirado-Vélez alleged that PREPA

2 All record citations in this Opinion and Order are to this Court’s docket unless specified otherwise. Citations to “Bankruptcy Docket” refer to Adversary Case No. 21-00029 before the Honorable Mildred Caban Flores of the United States Bankruptcy Court for the District of Puerto Rico. willfully violated a discharge injunction issued pursuant to 11 U.S.C. § 524(a)(2) when it sought to collect a debt reflected in Appellant’s daughter’s account with PREPA. Id. Tirado-Vélez

sought, among other things, an award of punitive damages and attorney’s fees against PREPA and to have that debt stricken from PREPA’s records. Id. PREPA filed a Motion for Summary Judgment (“First MSJ”) on May 4, 2021. (Bankruptcy Docket No. 13). Then, in late June, Tirado-Vélez filed an amended complaint (the “Amended Complaint”) naming five additional Defendants without materially altering her claims against PREPA. (Bankruptcy Docket No. 23). Consequently, PREPA’s First MSJ was mooted, leading PREPA to file a Motion for Summary Judgment as to Amended Complaint (“Second MSJ”) on July 16, 2021, which LUMA joined. (Bankruptcy Docket Nos. 38, 41 and 74). The Second MSJ primarily argued that the Amended Complaint is meritless insofar as it is based on the mistaken

assertion that the debt at issue was actually Tirado-Vélez’s debt, and not her daughter’s. (Bankruptcy Docket No. 41 at 7). According to PREPA and LUMA, because the debt belonged to Tirado-Vélez’s daughter, it was not discharged in the preceding bankruptcy case and thus collection of that debt did not violate the discharge injunction. Id. On July 28, 2021, Tirado-Vélez filed a Motion to Quash as to the Second MSJ, which the Bankruptcy Court denied on August 6, 2021. (Bankruptcy Docket Nos. 45 and 55). In its denial order, the Bankruptcy Court expressly instructed Tirado-Vélez to comply with Fed. R. Civ. P. 56(d), made applicable to bankruptcy proceedings by Fed. R. Bankr. P. 7056, which required Tirado-Vélez to show “by

affidavit or declaration that, for specified reasons, it cannot present facts essential to justify its opposition” before the Bankruptcy Court could consider denying the Second MSJ, allow time to conduct discovery, or “issue any other appropriate order.” (Bankruptcy Docket No. 55). On September 3, 2021, despite the express instructions of the Bankruptcy Court, Tirado-Vélez filed a Motion for Extension which failed to comply with Rule 56(d), and which was subsequently denied on September 29, 2021. (Bankruptcy Docket Nos. 62 and 68). Tirado- Vélez never filed an opposition to PREPA and LUMA’s Second MSJ. (Bankruptcy Docket No. 84). Hence, PREPA requested that the Second MSJ be deemed submitted and granted without opposition.

(Bankruptcy Docket Nos. 66 and 71). PREPA first made this request on September 21, 2021, in its opposition to Appellant’s Motion for Extension. (Bankruptcy Docket No. 66 at 3). Thereafter, PREPA reiterated its request in another motion dated October 11, 2021. (Bankruptcy Docket No. 71). Tirado-Vélez also failed to answer the dispositive motions of other Appellees. (Bankruptcy Docket No. 84). Quanta had filed its Motion to Dismiss on September 3, 2021, arguing that the Amended Complaint should be dismissed as to Quanta because it was never served. (Bankruptcy Docket No. 63). The Bankruptcy Court awaited Tirado-Vélez’s response for twenty-six (26) days before granting Quanta’s Motion on September 29, 2021. (Bankruptcy Docket No. 67).

In a similar manner, the Bankruptcy Court waited thirty-four (34) days before granting P3’s unanswered Motion to Abstain, in which P3 requested that the Bankruptcy Court abstain from resolving the request for declaratory relief against it pursuant to 28 U.S.C. § 1334(c)(1), as the precise matter at issue was addressed in another case. (Bankruptcy Docket Nos. 65 and 72). On October 14, 2021, the Bankruptcy Court issued an order finding that PREPA and LUMA’s Second MSJ was unopposed (the “Summary Judgment Order”). (Bankruptcy Docket No. 75). By that date, the Bankruptcy Court had given Appellant ninety (90) days to oppose the Second MSJ. (Bankruptcy Docket Nos. 41 and 75). Moreover, the Bankruptcy Court issued the Summary Judgment Order

one hundred and sixty-three (163) days after PREPA filed the First MSJ, which was substantially similar to the Second MSJ. (Bankruptcy Docket Nos. 13 and 75). Thus, Tirado-Vélez had nearly half a year to craft her opposition. Id. The Bankruptcy Court treated the facts which Tirado-Vélez had failed to properly controvert as admitted and granted the Second MSJ, dismissing Appellant’s Amended Complaint in its entirety with prejudice. (Bankruptcy Docket No. 75). The Judgment of the Bankruptcy Court was entered the following day. (Bankruptcy Docket No. 76). Thereafter, on October 25, 2021, Tirado-Vélez filed a Motion for Reconsideration regarding the Summary Judgment Order. (Bankruptcy Docket No. 81). On November 22, 2021, the Bankruptcy Court denied the Motion for Reconsideration (the “Reconsideration

Order”), finding that the local bankruptcy rules invoked by Appellant did not alter the outcome, and that the Summary Judgment Order had adequately considered the record. (Bankruptcy Docket No. 84).

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