Although the members of the Financial Oversight and Management Board of Puerto Rico were not nominated by the President nor confirmed by the Senate, the Supreme Court ruled yesterday that the appointment of the Board did not violate the Appointments Clause of the Constitution because they exercise “primarily local duties,” according to an analysis from ABI Editor-at-Large Bill Rochelle. All of the justices agreed in the judgment reversing the First Circuit, which had held that the Board’s appointment violated the Appointments Clause. The decision by the high court means there will be no lingering doubt about the validity of Puerto Rico’s debt arrangement. Justice Stephen G. Breyer wrote the opinion of the court. Justices Clarence Thomas and Sonia Sotomayor concurred in the judgment, which means they agreed with the result but for different reasons. In her opinion, Justice Sotomayor raised but did not answer questions about the ability of Congress to set aside Puerto Rico’s democratically elected government by appointing a federal board to take over the island commonwealth’s fiscal powers and responsibilities.
