Judge Swain Maintains PROMESA’s constitutionality

Federal Judge, Laura Taylor Swain, entered an order denying the challenge by the investment fund Aurelius on the constitutionality of the Puerto Rico Financial Oversight and Management Board under the Appointment Clause of the Constitution of the United States and the motions to dismiss Puerto Rico’s Title III petition and relief from the Automatic Stay.

The Official Committee of Retired Employees of the Government of Puerto Rico (COR, for its acronym in Spanish) was one of the interested parties that opposed to Aurelius challenge, because -if granted- it would negatively affect the government’s capacity to pay pensions and benefits to retirees.

According to Swain’s order: “Having examined the factors argued by the parties, the Court finds that Congress’ invocation of the Territories Clause is consistent with the entity it purported to create, that the method of selection that Congress fashioned for the membership of the Oversight Board is consistent with the exercise of plenary congressional power under that Clause, and that neither Presidential nomination nor Senate confirmation of the appointees to the Oversight Board is necessary as a constitutional matter to legitimize the exercise of the Oversight Board’s powers under PROMESA because the members of the Oversight Board are not 'Officers of the United States' subject to the Appointments Clause.”