Supreme Court of the United States
Commonwealth of Puerto RICO, Petitioners v. Franklin California Tax-Free Trust — Sotomayor, J…
June 13, 2016195 L. Ed. 2d 298
Summary
Justice Sotomayor, joined by Justice Ginsburg, dissents from the Court’s decision that Puerto Rico’s Recovery Act is pre‑empted by § 903(1) of the Bankruptcy Code. She argues that because Puerto Rico’s municipalities are excluded from Chapter 9, the pre‑emption provision does not apply, and the Act should be upheld as the only viable restructuring tool. The dissent emphasizes the statutory context and the purpose of the bankruptcy scheme.