In Puerto Rico v. Franklin California Tax-Free Trust, the Supreme Court held that Puerto Rico’s Recovery Act was pre-empted by federal law. While the Majority’s method of interpreting the plain language of the Bankruptcy Code was the correct course of action, additional notable interpretations and policy arguments were raised in regards to the Bankruptcy Code itself as well as this holding’s implications on the citizens of Puerto Rico. However, while Puerto Rico and the Dissent may not have found solace through the judiciary’s resolution in this matter, Congress’ swift passing of PROMESA has provided Puerto Rico with an initial opportunity to address its current financial situation.
Timothy R. Powell,
Puerto Rico v. Franklin California Tax-Free Trust: Congressional Intent Interpreted Through a Plain Reading of the Federal Bankruptcy Code,
13 J. Bus. & Tech. L.
Available at: http://digitalcommons.law.umaryland.edu/jbtl/vol13/iss1/6