230412 MELENDEZ-SANTANA STIPULATION VERSION APRIL 12, 2023 1

UNITED STATES DISTRICT COURT 

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

No. 17 BK 3283-LTS

Re: ECF No. 23700

(Jointly Administered)

STIPULATION AND AGREED ORDER RESOLVING MARIA

DE LOS ANGELES ORTIZ–SOTO’S AND NILDA MELENDEZ–SANTANA’S

MOTION TO SET ASIDE DISCHARGE AND REQUSTING RELIEF OF STAY 

The Commonwealth of Puerto Rico (the “Commonwealth”), by and through the Financial 

Oversight and Management Board for Puerto Rico (the “Oversight Board”), as the sole Title III 

representative of the Commonwealth pursuant to Section 315(b) of the Puerto Rico Oversight, 

Management, and Economic Stability Act (“PROMESA”),2 Maria De Los Angeles Ortiz-Soto 

(“Ms. Ortiz-Soto”), and Nilda Melendez-Santana (“Ms. Melendez-Santana” and together with Ms. 

Ortiz-Soto, “Movants”) hereby stipulate and agree as follows:

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 BK 3283-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”) (Last Four 

Digits of Federal Tax ID: 3801) (Last Four Digits of Federal Tax ID: 3801) (Bankruptcy Case No. 19-BK-5523-

LTS). (Title III case numbers are listed as Bankruptcy Case numbers due to software limitations).

2

 PROMESA is codified at 48 U.S.C. §§ 2101–2241.

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230412 MELENDEZ-SANTANA STIPULATION VERSION APRIL 12, 2023 2

RECITALS

The Commonwealth’s Title III Case

A. On May 3, 2017, the Commonwealth, by and through the Oversight Board, as the 

Commonwealth’s representative pursuant to PROMESA Section 315(b), filed a voluntary petition 

with the United States District Court for the District of Puerto Rico (the “Title III Court”) for relief 

pursuant to PROMESA Section 304(a), commencing a case under Title III thereof (the 

“Commonwealth Title III Case”).

B. On January 18, 2022, the Title III Court entered the Order and Judgment 

Confirming Modified Eighth Amended Title III Joint Plan of Adjustment of the Commonwealth of 

Puerto Rico, the Employees Retirement System of the Government of the Commonwealth of Puerto 

Rico, and the Puerto Rico Public Buildings Authority [ECF No. 19813] (the “Confirmation 

Order”), confirming the Modified Eighth Amended Title III Joint Plan of Adjustment of the 

Commonwealth of Puerto Rico, et al. [ECF No. 19784] (the “Commonwealth Plan”).

C. Section 92.3 of the Commonwealth Plan and decretal paragraph 59 of the 

Confirmation Order provide for, among other things, an injunction from and after the effective 

date of the Commonwealth Plan on the prosecution of claims discharged pursuant to the 

Commonwealth Plan (the “Discharge Injunction”).

D. On March 15, 2022, the effective date of the Commonwealth Plan occurred, and 

the Commonwealth Plan was substantially consummated (the “Plan Effective Date”). [ECF No. 

20349].

E. On October 20, 2022, the Title III Court entered the Order Extending 

Administrative Claim Bar Date for Certain Parties and Modifying Discharge Injunction [ECF No. 

22650] (the “Modification Order”), which, among other things, modified the Discharge Injunction

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“solely to the limited extent of allowing litigation with respect to claims authorized to be asserted 

pursuant to 32 L.P.R.A. § 3077(a), to the extent the amount of such claim asserted is within such 

statutory limitation of $75,000 or $150,000, as applicable, to proceed to final judgment and 

execution, including any appeals.” Modification Order ¶ 6. 

The Ortiz-Soto Action

F. On February 11, 2021, Ms. Ortiz-Soto filed an action, captioned Maria De Los 

Angeles Ortiz-Soto v. Municipality of San Juan, Case No. SJ2021CV00871 (the “Ortiz-Soto 

Action”), in the Court of First Instance in the San Juan Superior Court (the “San Juan Court”) 

against the Municipality of San Juan relating to an alleged slip and fall that occurred on September 

13, 2020. On February 11, 2022, Ms. Ortiz-Soto filed an amended complaint adding the 

Commonwealth as a named defendant.

G. On April 5, 2022, the Commonwealth filed a notice of injunction (the “Ortiz-Soto 

Injunction Notice”) in the Ortiz-Soto Action, notifying the San Juan Court of the occurrence of the 

Plan Effective Date and the Discharge Injunction (both as defined below). On May 19, 2022, the 

San Juan Court issued a partial judgment staying the Ortiz-Soto Action solely with respect to the 

claims against the Commonwealth. 

The Melendez-Santana Action

H. On November 11, 2021, Ms. Melendez-Santana filed an action, captioned Nilda 

Melendez-Santana v. Municipality of Guaynabo, et. al., Case No. BY2021CV04644 (the 

“Melendez-Santana Action,” and together with the Ortiz-Soto Action, the “Postpetition Actions”), 

in the Court of First Instance in the Bayamon Court (the “Bayamon Court”) against the 

Municipality of Guaynabo and the Commonwealth relating to an alleged slip and fall that occurred 

on August 21, 2021. 

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230412 MELENDEZ-SANTANA STIPULATION VERSION APRIL 12, 2023 4

I. On April 11, 2022, the Commonwealth filed a notice of injunction (the “MelendezSantana Injunction Notice,” and together with the Ortiz-Soto Injunction Notice, the “Injunction 

Notices”) in the Melendez-Santana Action, notifying the Bayamon Court of the occurrence of the 

Plan Effective Date and the Discharge Injunction. On May 3, 2022, the Bayamon Court issued a 

judgment staying the Melendez-Santana Action.

The Proofs of Claims and the Motion

J. Ms. Ortiz Soto filed the following proofs of claim relating to the Ortiz-Soto Action 

(collectively, the “Ortiz-Soto POCs”):

Proof of Claim No. Asserted Claim Date Filed

179979 $120,000.00 June 6, 2022

180386 $120,000.00 June 14, 2022

180389 $120,000.00 June 14, 2022

K. Ms. Melendez-Santana filed the following proof of claim relating to the MelendezSantana Action (the “Melendez-Santana POC” and together with the Ortiz-Soto POCs, the 

“POCs”):

Proof of Claim No. Asserted Claim Date Filed

180388 $85,000.00 June 14, 2022

L. On March 7, 2023, Movants filed the Motion to Set Aside Discharge and 

Requesting Relief of Stay [ECF No. 23700] (the “Motion”), requesting relief from the Discharge 

Injunction to allow the Postpetition Actions to proceed.

M. The Debtors and Movants subsequently met and conferred and have resolved the 

Motion and the POCs, as set forth herein. 

NOW, THEREFORE, in consideration of the foregoing, the parties hereby agree as 

follows:

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230412 MELENDEZ-SANTANA STIPULATION VERSION APRIL 12, 2023 5

AGREEMENT

1. This stipulation (the “Stipulation”) shall become effective upon entry of an order 

of the Title III Court approving the terms and provisions hereof (the “Stipulation Effective Date”).

2. The Motion is hereby withdrawn, with prejudice.

3. The POCs are hereby withdrawn, with prejudice.

4. Ms. Ortiz-Soto (i) acknowledges and agrees that any claim arising from or relating 

to the Ortiz-Soto Action against the Commonwealth shall not exceed $75,000 or $150,000, as 

applicable, pursuant to 32 L.P.R.A. § 3077(a), and (ii) shall take such actions as are necessary to 

effectuate subsection (i) above, including, without limitation, amending any complaint in the OrtizSoto Action.

5. Ms. Melendez-Santana (i) acknowledges and agrees that any claim arising from or 

relating to the Melendez-Santana Action against the Commonwealth shall not exceed $75,000 or 

$150,000, as applicable, pursuant to 32 L.P.R.A. § 3077(a), and (ii) shall take such actions as are 

necessary to effectuate subsection (i) above, including, without limitation, amending any 

complaint in the Melendez-Santana Action.

6. From and after the Stipulation Effective Date, the parties hereto acknowledge and 

agree that, pursuant to the acknowledgements in Paragraphs 4 and 5 above and Paragraph 6 of the 

Modification Order, the Discharge Injunction shall not apply to the Postpetition Actions, which 

shall be permitted to continue to final judgment and execution, including, without limitation, any 

appeal thereof.

7. The Commonwealth and Movants represent and warrant that they are properly and 

fully empowered to enter into and execute this Stipulation, that they know of no contractual 

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230412 MELENDEZ-SANTANA STIPULATION VERSION APRIL 12, 2023 6

commitment or legal limitation of, impediment to, or prohibition against their entry into this 

Stipulation, and that the Stipulation is legal, valid, and binding upon them.

8. Neither this Stipulation nor any statement made, action, or position taken, or 

document prepared or executed in connection with the negotiation, execution, or implementation 

of this Stipulation shall be deemed to be, or construed as, (a) an admission by any party of any 

liability, wrongdoing, act, or matter or that any claim or defense has or lacks merit; or (b) a waiver 

of the Commonwealth’s rights to dispute, contest, setoff, or recoup any claim, including any claims 

asserted by Movants, or assert any related rights, claims, or defenses and all such rights are 

reserved.

9. Nothing in this Stipulation shall be deemed or construed as (a) creating or 

conferring any right upon any persons or entities except as expressly provided in this Stipulation, 

(b) evidence of any willingness or obligation on the Commonwealth’s part to consent to any other 

or future modifications of or relief from the Discharge Injunction or any injunction with respect to 

any persons or entities, or (c) altering or otherwise modifying the terms of the Plan or Confirmation 

Order. The Commonwealth and Movants reserve all rights, defenses, and protections with respect 

to any matters pending or that may arise in connection with the Plan, the Confirmation Order, and 

the Postpetition Actions (including, without limitation, with respect to any discovery in connection 

therewith). 

10. This Stipulation contains the entire agreement by and between the parties with 

respect to the subject matter hereof, and all prior understandings or agreements, if any, are merged 

into this Stipulation.

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11. This Stipulation shall be construed and interpreted in accordance with the laws of 

Puerto Rico. For purposes of construing this Stipulation, neither of the parties shall be deemed to 

have been the drafter of the Stipulation. 

12. This Stipulation shall be binding on the parties’ successors and assigns.

13. Electronic copies of signatures on this Stipulation are acceptable, and an electronic 

copy of a signature on this Stipulation is deemed an original. This Stipulation may be executed in 

counterparts, each of which is deemed an original, but when taken together constitute one and the 

same document.

14. The Title III Court shall retain jurisdiction to hear and determine all matters arising 

from or related to the implementation, interpretation, or enforcement of this Stipulation.

[Remainder of Page Left Intentionally Blank]

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230412 MELENDEZ-SANTANA STIPULATION VERSION APRIL 12, 2023 8

Dated: April 11, 2023

STIPULATED AND AGREED TO BY:

PROSKAUER ROSE LLP

/s/ Brian S. Rosen

Martin J. Bienenstock (pro hac vice) 

Brian S. Rosen (pro hac vice) 

Eleven Times Square 

New York, NY 10036 

Tel: (212) 969-3000 

Fax: (212) 969-2900 

O’NEILL & BORGES LLC

/s/ Hermann D. Bauer

Hermann D. Bauer

USDC No. 215205

Carla García-Benítez

USDC No. 203708

Gabriel A. Miranda

USDC No. 306704

250 Muñoz Rivera Ave., Suite 800

San Juan, PR 00918-1813

Tel: (787) 764-8181

Fax: (787) 753-8944

Attorneys for the Financial Oversight and 

Management Board as representative for the 

Commonwealth 

/s/ Juan M. Cancio Biaggi

Juan M. Cancio-Biaggi 

USDC-PR No. 229811

PMB 317

P.O. Box 70344

San Juan, P.R. 00936

Tel: (787) 763-1211

Fax: (787) 763-1215

Email: jm@canciobiaggi.com

SO ORDERED on April 12, 2023

/s/ Laura Taylor Swain

HON. LAURA TAYLOR SWAIN

UNITED STATES DISTRICT JUDGE

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