No. 20-1466

Hermandad de Empleados del Fondo del Seguro del Estado, Inc., et al. v. Commonwealth of Puerto Rico, et al.

Lower Court: First Circuit
Docketed: 2021-04-20
Status: Denied
Type: Paid
Response RequestedResponse WaivedRelisted (2) Experienced Counsel
Tags: burden-of-proof constitutional-law contract-clause fiscal-crisis heightened-scrutiny legislative-impairment public-contract reasonableness-and-necessity
Key Terms:
LaborRelations JusticiabilityDoctri
Latest Conference: 2021-09-27 (distributed 2 times)
Question Presented (AI Summary)

Whether placing the burden of proof on the plaintiffs regarding the reasonableness and necessity of a legislation that impaired a public contract conflicts with this Court's rule that less deference must be given to the State when it impaired a contract to which it is a party

Question Presented (OCR Extract)

QUESTIONS PRESENTED The last case that this Honorable Court struck down a law for impairing a government contract was United States Trust Co. of New York v. New Jersey, 431 USS. 1 (1977) because the State failed to demonstrate that the impairment was reasonable and necessary. In that case, this Court applied a heightened scrutiny than what is employed when evaluating the impairment of a contract between private parties. This Court also established that when a law has impaired a public contract, less deference must be given to the legislature’s assessment of reasonableness and necessity of the impairment because the State’s self-interest is at stake. Nonetheless, the scope of this “heightened scrutiny” has not been clarified. Consequently, in this case, the Court of Appeals for the First Circuit placed the burden of proof on Petitioners regarding the inquiry under the Contract Clause of the U.S. Constitution. However, the First, Second, Third, Sixth, Seventh, and Ninth Circuits are split on what party should have the burden of proof on this inquiry. Thus, the questions presented are: 1. Whether placing the burden of proof on the plaintiffs regarding the reasonableness and necessity of a legislation that impaired a public contract conflicts with this Court’s rule that less deference must be given to the State when it impaired a contract to which it is a party. ii QUESTIONS PRESENTED — Continued 2. Whether an intermediate scrutiny applies to the evaluation of the constitutionality of a public contract’s impairment. 3. Whether the severity of a fiscal crisis by itself justifies full deference to Puerto Rico’s legislature’s assessment of reasonableness and necessity of laws that impair public contracts.

Docket Entries

2021-10-04
Petition DENIED.
2021-08-23
Reply of petitioners Union Hermandad de Empleados del Fondo del Seguro del Estado, et al. filed. (Distributed)
2021-08-18
DISTRIBUTED for Conference of 9/27/2021.
2021-08-02
Brief of respondent Financial Oversight and Management Board for Puerto Rico, for itself and as represenative of the Commonwealth of Puerto Rico in opposition filed.
2021-06-04
Motion to extend the time to file a response is granted and the time is extended to and including August 2, 2021, for all respondents.
2021-06-03
Motion to extend the time to file a response from July 1, 2021 to August 2, 2021, submitted to The Clerk.
2021-06-01
Response Requested. (Due July 1, 2021)
2021-05-25
DISTRIBUTED for Conference of 6/10/2021.
2021-05-20
Waiver of right of respondents Omar J. Marrero-Diaz, Christian Sobrino Vega to respond filed.
2021-05-20
Waiver of right of respondents Christian Sobrino Vega, et al. to respond filed.
2021-05-11
Waiver of right of respondents Commonwealth of Puerto Rico, et al. to respond filed.
2021-04-16
Petition for a writ of certiorari filed. (Response due May 20, 2021)

Attorneys

Christian Sobrino Vega, et al.
Luis C. Marini-BiaggiMarini Pietrantoni Muniz, LLC, Respondent
Financial Oversight and Management Board for Puerto Rico, for itself and as represenative of the Commonwealth of Puerto Rico
Martin J. BienenstockProskauer Rose LLP, Respondent
Omar J. Marrero-Diaz, Christian Sobrino Vega
William J. SushonO'Melveny & Myers LLP, Respondent
Union Hermandad de Empleados del Fondo del Seguro del Estado, et al.
Jessica Esther MendezBufete Emmanuelli, C.S.P., Petitioner