IN RE: THE FINANCIAL OVERSIGHT AND MANAGEMENT BOARD FOR PUERTO RICO, AS REPRESENTATIVE FOR THE COMMONWEALTH OF PUERTO RICO
- Summarized by David Baker , Law Office of David G. Baker
- 5 years 6 months ago
- Case Type:
- Business
- Case Status:
- Reversed and Remanded
- Citation:
- 17-1831 (1st Circuit, Sep 22,2017) Published
- Tag(s):
-
- Ruling:
- District Court abused its discretion in denying intervention
- Procedural context:
- Expedited appeal from an order denying the creditor's committee's motion to intervene.
- Facts:
- In the "PROMESA" bankruptcy case of Puerto Rico, the official committee of unsecured creditors sought to intervene in an adversary proceeding brought an action seeking declaratory and injunctive relief prohibition Puerto Rico and the Financial Oversight Board from implementing the Fiscal Plan. The District Court denied the motion based on a footnote in 1st Cir. percent. 1st Cir. held this was error because the footnote was dicta, that case was chapter 7, and §1109(b) gives an unfettered right to intervene pursuant to the statute.
- Judge(s):
- Howard (C.J. and author); Torruella and Kayatata
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