« Does the White House Stand for Consumer Protection or for Predatory Lending? | Main | Puerto Rico: Further Supreme Court Thoughts »

Puerto Rico: Supreme Court Argument

posted by Stephen Lubben

The transcript can be found here.  Based on my initial read, it seems like the First Circuit might be reversed, which opens up all the issues Jacoby noted earlier (namely, will the statute pass Contracts Clause review – assuming the Clause even applies to the Commonwealth).

Comments

Justice Sotomayor's remark summed up ALL the issues with one question.

JUSTICE SOTOMAYOR: It's like the Tenth
Amendment right of States to deal with their municipalities consistent with the Constitution. Where
does that leave you can make uniform­ bankruptcy laws,but nothing about that permits you to impair the rights of States so drastically?


I interpret this to mean Puerto Rico is a State which can enact its own insolvency law but not impair contracts.

I agree; reversal is likely.

Puerto Rico is no a "state." It's a U.S. territory over which the U.S. Congress has broad oversight powers granted by the U.S. Constitution and the law of the land.

Superman, I don’t make this stuff up - honest.

Puerto Rico is “DEFINED” as a “STATE” for the purpose of the “BANKRUPTCY CODE”.

11 U.S. Code § 101 - Definitions
...
(52) The term “State” includes the District of Columbia and Puerto Rico, except for the purpose of defining who may be a debtor under chapter 9 of this title.

The comments to this entry are closed.

Contributors

Current Guests

Follow Us On Twitter

Like Us on Facebook

  • Like Us on Facebook

    By "Liking" us on Facebook, you will receive excerpts of our posts in your Facebook news feed. (If you change your mind, you can undo it later.) Note that this is different than "Liking" our Facebook page, although a "Like" in either place will get you Credit Slips post on your Facebook news feed.

News Feed

Categories

Bankr-L

  • As a public service, the University of Illinois College of Law operates Bankr-L, an e-mail list on which bankruptcy professionals can exchange information. Bankr-L is administered by one of the Credit Slips bloggers, Professor Robert M. Lawless of the University of Illinois. Although Bankr-L is a free service, membership is limited only to persons with a professional connection to the bankruptcy field (e.g., lawyer, accountant, academic, judge). To request a subscription on Bankr-L, click here to visit the page for the list and then click on the link for "Subscribe." After completing the information there, please also send an e-mail to Professor Lawless (rlawless@illinois.edu) with a short description of your professional connection to bankruptcy. A link to a URL with a professional bio or other identifying information would be great.

OTHER STUFF

Powered by TypePad