Fiscal Board members are declared unconstitutional

Fiscal Board members are declared unconstitutional

The Court of Appeals of the First Circuit of Boston revoked Judge Laura Taylor Swain, who will now have 90 days to declare unconstitutional the appointments of the Fiscal Control Board (JCF) for Puerto Rico to was created during the Obama administration.

According to the decision of the court, the members were appointed without having followed the Nomination Clause of the Constitution of the United States.

“The members of the Board (not including the ex-officio member) must be, and were not, appointed in compliance with the Appointments Clause,” details the Court’s decision. Meanwhile, he adds that “we direct the District Court to introduce a declaratory judgment to the effect that the Promise protocol for the appointments of the board members is unconstitutional and must be undone.”

According to the decision, the Board acted with the authority of law when it presented the Title III cases in the bankruptcy court. The Court, in this way, offers legitimacy to the decisions already taken by the federal agency. “There is no other indication that the members of the Board acted in good faith in moving to initiate such procedures.”

The Court argued that it fears that applying the request to dismiss the actions of the Board that precede this decision, could have “negative consequences for the many, if not thousands, of innocents, third parties that have relied on the actions of the Board so far” .

In addition, he argues that the invalidation of everything the Board has done since 2016 would probably introduce a further delay in a historic process of debt restructuring, already delayed after the ravages of the hurricanes that affected Puerto Rico in September 2017.

“The Court returns the case to Judge Swain. Revoke the judge to determine that the language of the Promise Law related to the appointment process is unconstitutional and establishes that the mandate of this ruling will not take effect in 90 days to give President [Donald Trump] an opportunity to submit the appointments to a new board. They must go through the advice and consent of the federal Senate, “said the lawyer.

According to Emanuelli, the judicial decision will open a new process because the nominees will have to go through public scrutiny, having to be interviewed in public hearings before the eyes of all. This fact did not occur during the appointment of the seven current incumbents.

The lawyer of the Union of Workers of the Electrical Industry and Irrigation (UTIER), union that filed the demand to invalidate that part of the legislation, asserted that if in the 90 days Swain does not comply or the substitutes are not named, Promise would remain without effect because we would be without a board.

Emanuelli explained that there is the possibility that the JCF go to the Supreme Court to appeal the decision of Boston.

At the time, he celebrated what happened and said that the leaders of the UTIER will be taking action as decided.

“The UTIER will be evaluating the decision to take concrete actions, if this victory were achieved, we would implement a strategy,” he said.

You can see the full Court transcript

 

 

COMMENTS