“By enacting PROMESA, Congress created and authorized the Oversight Board to require the devaluation of COFINA bonds and the transfer to Puerto Rico of pledged Sales and Use Tax Revenues and other funds dedicated to bond repayment. Congress targeted these securities so that the Bondholders would ‘bear that loss[,]’ not ‘the American taxpayer.’ Congress also knew that enactment of PROMESA could mean that ‘the Federal government’ could be found liable for an unconstitutional taking. Did the trial court err in dismissing the Bondholders’ taking claim?”
“We . . . agree with the Claims Court that the United States lacks the requisite amount of coercive control over the Oversight Board’s actions to create liability under the Fifth Amendment.”
