Supreme Court of the United States
Commonwealth of Puerto RICO, Petitioners v. Franklin California Tax-Free Trust
June 13, 2016579 U.S. 115
Summary
The Court held that the Bankruptcy Code's pre-emption provision bars Puerto Rico from enacting its own municipal bankruptcy law. The Court reasoned that the Code's definition of 'State' excludes Puerto Rico only for the purpose of authorizing municipalities to file under Chapter 9, not for pre-emption purposes. Justice Sotomayor dissented, arguing the exclusion removes Puerto Rico from Chapter 9 entirely.
Holding
- Pre-emption of Recovery Act. Section 903(1) of the Bankruptcy Code pre-empts Puerto Rico's Recovery Act.
Docket 15-233, 15-255
Cited authorities
- 11 U.S.C. §§101
- 11 U.S.C. §§101
- 11 U.S.C. § 109(c)(2)
- 11 U.S.C. § 109(c)
- 11 U.S.C. §903
- 11 U.S.C. §903
- 11 U.S.C. §101
- 11 U.S.C. §903
Cited by
- State v. CSX Transp., Inc.
- State v. CSX Transp., Inc.
- State v. CSX Transp., Inc.
- Brittany Billetts v. Mentor Worldwide, LLC
- Mary Sewell v. Mentor Worldwide, LLC
- Solberg v. Victim Services, Inc.
- In Re Paul R. Sagendorph, Ii Wells Fargo Bank, N.a. v. Paul R. Sagendorph, Ii
- City of El Cenizo v. State of Texas