230329 ORD RE BLANCA IRIS MARRERO STIP VERSION MARCH 29, 2023 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

No. 17 BK 3283-LTS

(Jointly Administered)

STIPULATION AND AGREED ORDER RESOLVING 

PLAINTIFF BLANCA IRIS MARRERO’S MOTION FOR

ALLOWANCE AND PAYMENT OF ADMINISTRATIVE EXPENSE CLAIM

The Commonwealth of Puerto Rico (the “Commonwealth”) and the Puerto Rico Public 

Buildings Authority (“PBA”), by and through the Financial Oversight and Management Board for 

Puerto Rico (the “Oversight Board”), as the sole Title III representative of the Commonwealth and 

PBA pursuant to Section 315(b) of the Puerto Rico Oversight, Management, and Economic 

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).

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230329 ORD RE BLANCA IRIS MARRERO STIP VERSION MARCH 29, 2023 2

Stability Act (“PROMESA”),

2 and Blanca Iris Marrero (“Movant”) hereby stipulate and agree 

as follows:

RECITALS

The Postpetition Action

A. On March 19, 2021, Movant alleges that she slipped and fell on a sidewalk outside 

of a government building. On January 3, 2022, Movant filed an action, captioned Marrero Rosario 

v. Departamento de Seguridad Publica, et al., Case No. SJ2022CV00O13 (the “Postpetition 

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

Court”) against the Commonwealth, the Puerto Rico Department of Justice, the Puerto Rico Police 

Department, and PBA (collectively, the “Government Parties”), together with certain other parties, 

relating to the alleged slip and fall, and seeking damages in an amount of “no less than $300,000.” 

Id. at 5. 

B. On April 4, 2022, the Commonwealth filed a notice of injunction (the “Injunction 

Notice”) in the Postpetition Action, notifying the Commonwealth Court of the occurrence of the 

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

Commonwealth Court issued a partial judgment staying the Postpetition Action. 

The Commonwealth’s and PBA’s Title III Cases

C. 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”).

2

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

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230329 ORD RE BLANCA IRIS MARRERO STIP VERSION MARCH 29, 2023 3

D. On September 27, 2019, PBA, by and through the Oversight Board, as PBA’s 

representative pursuant to PROMESA Section 315(b), filed a voluntary petition with the Title III 

Court for relief pursuant to PROMESA Section 304(a), commencing a case under Title III thereof 

(the “PBA Title III Case”).

E. 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”).

F. 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”).

G. 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].

Movant’s Administrative Expense Motion

H. On June 12, 2022, Movant filed Plaintiff Blanca Iris Marrero’s Motion for 

Allowance and Payment of Administrative Expense Claim [ECF No. 21192] (the “Motion”), 

seeking allowance of an administrative expense claim of $300,000 (the “Tort Claim”). Movant 

concurrently filed a proof of Administrative Expense Claim (POC No. 180384) (the 

“Administrative Expense POC”).

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230329 ORD RE BLANCA IRIS MARRERO STIP VERSION MARCH 29, 2023 4

I. On August 26, 2022, the Debtors filed the Debtors’ Objection to Plaintiff Bianca 

Iris Marrero’s Motion for Allowance and Payment of Administrative Expense Claim [ECF 

No. 21931].

J. The Debtors and Movant subsequently met and conferred and have resolved the 

Motion and Administrative Expense POC as set forth herein. 

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

follows:

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 Administrative Expense POC shall be deemed withdrawn with prejudice.

4. From and after the Stipulation Effective Date, the Discharge Injunction is modified 

solely to the limited extent necessary for Movant (i) to continue the Postpetition Action, including, 

without limitation, any appeal thereof, solely against the following insurance policies for the 

Government Parties and the applicable insurers pursuant to the Puerto Rico Insurance Code, 

Title 26 Laws of Puerto Rico Annotated Section 2003 et al. and/or additional statutes applicable 

to direct actions against an insurer party and related policies: (a) Triple-S Propiedad and 

(b) MAPFRE PRAICO Insurance Company (such insurers collectively, the “Insurers”, and such 

policies collectively, the “Insurance Policies”), which have filed appearances in the Postpetition 

Action, and (ii) to seek discovery, including requests for admissions, production of documents, 

and taking of depositions, from the Government Parties in connection with the Postpetition Action.

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230329 ORD RE BLANCA IRIS MARRERO STIP VERSION MARCH 29, 2023 5

5. To the extent that it does not impede a direct action against the Insurance Policies, 

subject to policy limits, Movant releases the Government Parties, including its agencies, related 

entities constituting the central government, as listed at [ECF No. 2828], and its covered territorial 

instrumentalities, approved by the Oversight Board at its September 30, 2016 meeting [ECF 

No. 1299-15 in Case No. 17-3567], from any claim or cause of action, whether known, unknown, 

asserted or assertable directly or derivatively, fixed, contingent, matured, unmatured, disputed, 

undisputed, in law, equity or otherwise, and whether asserted or unasserted, that arose, in whole 

or in part, prior to the Plan Effective Date, including, without limitation, claims arising from or 

relating to the Postpetition Action, the Motion, or the Administrative Expense POC; provided, 

however, the foregoing shall not be deemed to release the Government Parties solely to the limited

extent to allow Movant to assert direct claims against the Insurers or the Insurance Policies, and 

for the Insurers to make distributions pursuant to the applicable Insurance Policies.

6. The Commonwealth, PBA, and Movant represent and warrant that they are properly 

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

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.

7. 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 or PBA’s rights to dispute, contest, setoff, or recoup any claim, including 

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

are reserved.

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230329 ORD RE BLANCA IRIS MARRERO STIP VERSION MARCH 29, 2023 6

8. 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 or PBA’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 Government Parties and Movant reserve all rights, defenses, and 

protections with respect to any matters pending or that may arise in connection with the Plan, the 

Confirmation Order, the Postpetition Action (including, without limitation, with respect to any 

discovery in connection therewith), and the Administrative Expense POC. 

9. 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.

10. 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. 

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

12. 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.

13. 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.

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230329 ORD RE BLANCA IRIS MARRERO STIP VERSION MARCH 29, 2023 7

Dated: March 29, 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 and PBA

LAW OFFICES OF F. VAN DERDYS

/s/ Fernando Van Derdys

Fernando Van Derdys, Esq. 

USDC-PR No. 201913

P.O. Box 9021888

San Juan, Puerto Rico 00902-1888

Phone: 787.519.2211

fvanderdys@gmail.com

Attorney for Movant

SO ORDERED. 

Dated: March 29, 2023

 /s/ Laura Taylor Swain

LAURA TAYLOR SWAIN

United States District Judge

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