{"id":6829,"date":"2019-02-18T13:05:05","date_gmt":"2019-02-18T19:05:05","guid":{"rendered":"https:\/\/www.investorlawyers.com\/?p=6829"},"modified":"2019-02-18T13:05:05","modified_gmt":"2019-02-18T19:05:05","slug":"u-s-first-circuit-court-of-appeals-invalidates-promesa-board","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/u-s-first-circuit-court-of-appeals-invalidates-promesa-board\/","title":{"rendered":"U.S. First Circuit Court of Appeals Invalidates PROMESA Board"},"content":{"rendered":"<br \/>\n<h6><strong>On Friday, February 15, the First Circuit Court of Appeals issued its ruling on Judge Laura Swain\u2019s prior decision that had affirmed the PROMESA Board as constitutional.\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0<\/strong><\/h6>\n<h6><em>In a surprise finding, the Court of Appeals overruled Judge Swain, finding that the PROMESA Board members were not appropriately appointed.\u00a0<\/em><\/h6>\n<p>The issue in dispute is whether the members of the PROMESA Board are required to receive the consent of the U.S. Senate.\u00a0 In particular, under PROMESA, President Obama appointed the seven members of the PROMESA Board by using a list of board members the U.S. Congress recommended.\u00a0 At the time, since all stakeholders appeared to have been given a vote in the appointment process, there was little objection to the PROMESA Board members.\u00a0 Then, in May 2017, the PROMESA Board placed Puerto Rico in a bankruptcy-like proceeding under Title III of the Act.\u00a0 Prior to the enactment of PROMESA, many investors \u2013 both retail and institutional \u2013 had relied on the fact that Puerto Rico could not file for Title 9 bankruptcy as insurance against ever receiving anything less than the par value of their bonds from Puerto Rico.\u00a0 PROMESA, with its Title III bankruptcy-like process, changed that insurance policy for many investors.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/u-s-first-circuit-court-of-appeals-invalidates-promesa-board\/\"  title=\"Continue Reading U.S. First Circuit Court of Appeals Invalidates PROMESA Board\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>On Friday, February 15, the First Circuit Court of Appeals issued its ruling on Judge Laura Swain\u2019s prior decision that had affirmed the PROMESA Board as constitutional.\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 In a surprise finding, the Court of Appeals overruled Judge Swain, finding that the PROMESA [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":6826,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3762],"tags":[3288,3061],"class_list":["post-6829","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-investigations","tag-promesa","tag-puerto-rico-debt-crisis"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>U.S. First Circuit Court of Appeals Invalidates PROMESA Board &#8212; Investor Lawyers Blog &#8212; February 18, 2019<\/title>\n<meta name=\"description\" content=\"In a surprise finding, the Court of Appeals overruled Judge Swain, finding that the PROMESA Board members were not appropriately appointed.\u00a0\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/u-s-first-circuit-court-of-appeals-invalidates-promesa-board\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"U.S. First Circuit Court of Appeals Invalidates PROMESA Board &#8212; Investor Lawyers Blog &#8212; February 18, 2019\" \/>\n<meta name=\"twitter:description\" content=\"In a surprise finding, the Court of Appeals overruled Judge Swain, finding that the PROMESA Board members were not appropriately appointed.\u00a0\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2019\/02\/PR.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"U.S. First Circuit Court of Appeals Invalidates PROMESA Board &#8212; Investor Lawyers Blog &#8212; February 18, 2019","description":"In a surprise finding, the Court of Appeals overruled Judge Swain, finding that the PROMESA Board members were not appropriately appointed.\u00a0","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/u-s-first-circuit-court-of-appeals-invalidates-promesa-board\/","twitter_card":"summary_large_image","twitter_title":"U.S. First Circuit Court of Appeals Invalidates PROMESA Board &#8212; Investor Lawyers Blog &#8212; February 18, 2019","twitter_description":"In a surprise finding, the Court of Appeals overruled Judge Swain, finding that the PROMESA Board members were not appropriately appointed.\u00a0","twitter_image":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2019\/02\/PR.jpg","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/u-s-first-circuit-court-of-appeals-invalidates-promesa-board\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/u-s-first-circuit-court-of-appeals-invalidates-promesa-board\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"U.S. First Circuit Court of Appeals Invalidates PROMESA Board","datePublished":"2019-02-18T19:05:05+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/u-s-first-circuit-court-of-appeals-invalidates-promesa-board\/"},"wordCount":837,"image":{"@id":"https:\/\/www.investorlawyers.com\/blog\/u-s-first-circuit-court-of-appeals-invalidates-promesa-board\/#primaryimage"},"thumbnailUrl":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2019\/02\/PR.jpg","keywords":["PROMESA","Puerto Rico Debt Crisis"],"articleSection":["Current Investigations"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/u-s-first-circuit-court-of-appeals-invalidates-promesa-board\/","url":"https:\/\/www.investorlawyers.com\/blog\/u-s-first-circuit-court-of-appeals-invalidates-promesa-board\/","name":"U.S. First Circuit Court of Appeals Invalidates PROMESA Board &#8212; 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