221103 ORD RE LAMOUTTE DISCOVERY MOT VERSION NOVEMBER 3, 2022 1

UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF PUERTO RICO

In re:

THE FINANCIAL OVERSIGHT AND 

MANAGEMENT BOARD FOR PUERTO RICO,

as representative of

THE COMMONWEALTH OF PUERTO RICO et al.,

Debtors.1

PROMESA

Title III

Case No. 17 BK 3283-LTS

(Jointly Administered)

ORDER STAYING CARLOS LAMOUTTE’S MOTION FOR LEAVE TO 

FILE A MOTION REQUESTING THE ENTRY OF AN ORDER PROVIDING 

FOR THE DISCOVERY OF EVIDENCE AND RESERVATION OF RIGHTS

The Court has received and reviewed Carlos Lamoutte’s Motion for Leave to File 

a Motion Requesting the Entry of an Order Providing for the Discovery of Evidence and 

Reservation of Rights (Docket Entry No. 22779 in Case No. 17-3283)2 (the “Discovery 

Motion”), filed by Carlos Lamoutte (“Movant”).

The Discovery Motion seeks entry of an order permitting Movant to “file a 

motion petitioning the Court for entry of an order providing for the discovery of evidence in 

relation to certain pleadings” filed by Movant, including (i) the Motion to Intervene and to 

Inform the Existence and Continuance of an Unresolvable Conflict of Interest in Violation of the 

Puerto Rico Recovery Accuracy in Disclosures Act of 2021, 48 U.S.C. 2101 et seq., and Petition 

for: (A) the Permanent Disqualification of O’Neill & Borges, LLC as Legal Counsel to the 

Financial Oversight and Management Board for Puerto Rico, and (B) the Disallowment and 

1 The Debtors in these Title III Cases, along with each Debtor’s respective Title III case 

number and the last four (4) digits of each Debtor’s federal tax identification number, as 

applicable, are the (i) Commonwealth of Puerto Rico (Bankruptcy Case No. 17-BK3283-LTS) (Last Four Digits of Federal Tax ID: 3481); (ii) Puerto Rico Sales Tax 

Financing Corporation (“COFINA”) (Bankruptcy Case No. 17-BK-3284-LTS) (Last Four 

Digits of Federal Tax ID: 8474); (iii) Puerto Rico Highways and Transportation 

Authority (“HTA”) (Bankruptcy Case No. 17-BK-3567-LTS) (Last Four Digits of 

Federal Tax ID: 3808); (iv) Employees Retirement System of the Government of the 

Commonwealth of Puerto Rico (“ERS”) (Bankruptcy Case No. 17-BK-3566-LTS) (Last 

Four Digits of Federal Tax ID: 9686); (v) Puerto Rico Electric Power Authority 

(“PREPA”) (Bankruptcy Case No. 17-BK-4780-LTS) (Last Four Digits of Federal Tax 

ID: 3747); and (vi) Puerto Rico Public Buildings Authority (“PBA”) (Bankruptcy Case 

No. 19-BK-5523-LTS) (Last Four Digits of Federal Tax ID: 3801) (Title III case 

numbers are listed as Bankruptcy Case numbers due to software limitations).

2 All docket entry references herein are to the docket of Case No. 17-3283.

Case:17-03283-LTS Doc#:22800 Filed:11/03/22 Entered:11/03/22 15:33:04 Desc: Main

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221103 ORD RE LAMOUTTE DISCOVERY MOT VERSION NOVEMBER 3, 2022 2

Disgorgement of Legal Fees (Docket Entry No. 20873) (the “O&B Motion”), and (ii) the Motion 

to Intervene and to Inform the Existence and Continuance of Unresolvable Conflicts of Interest 

in Violation of the Puerto Rico Recovery Accuracy in Disclosures Act of 2021, 48 U.S.C. 2101 et 

seq., and Petition for: (A) the Permanent Disqualification of McKinsey & Company, Inc. and Its 

Affiliates as Advisors to the Financial Oversight and Management Board for Puerto Rico, and 

(B) the Disallowment and Disgorgement of Legal Fees (Docket Entry No. 22025) (the 

“McKinsey Motion” and, together with the O&B Motion, the “Disqualification Motions”).

The Court previously set briefing schedules with respect to each of the 

Disqualification Motions and advised the parties that it would take the Disqualification Motions 

on submission. Interested parties filed objections to the Disqualification Motions arguing, 

among other things, that Movant lacks standing to prosecute the Disqualification Motions. 

Movant filed replies in further support of each of the Disqualification Motions. Accordingly, the 

Disqualification Motions are now fully briefed and under consideration by the Court.

Although the Discovery Motion contends that the relief sought by Movant would 

aid in the “speedy resolution of” the Disqualification Motions (Discovery Mot. ¶¶ 3, 7), the 

already-filed objections to the Disqualification Motions raise substantial threshold legal issues

concerning the Court’s jurisdiction and Movant’s standing with respect to the Disqualification 

Motions. The resolution of those issues is likely to be pertinent to the adjudication of the 

Discovery Motion. As such, in the exercise of its reasoned discretion and in the interests of 

efficiency and judicial economy, the Court hereby stays the Discovery Motion pending the 

Court’s consideration of the Disqualification Motions.

SO ORDERED.

Dated: November 3, 2022 /s/ Laura Taylor Swain 

LAURA TAYLOR SWAIN

United States District Judge

Case:17-03283-LTS Doc#:22800 Filed:11/03/22 Entered:11/03/22 15:33:04 Desc: Main

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