UNITED STATES DISTRICT COURT

DISTRICT OF PUERTO RICO

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In re:

THE FINANCIAL OVERSIGHT AND 

MANAGEMENT BOARD FOR PUERTO RICO,

as representative of 

THE COMMONWEALTH OF PUERTO RICO, et al.,

Debtors.1

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PROMESA

Title III

No. 17 BK 3283-LTS

Re: ECF Nos. 2831, 2856, 2905

(Jointly Administered)

In re:

THE FINANCIAL OVERSIGHT AND 

MANAGEMENT BOARD FOR PUERTO RICO,

as representative of 

PUERTO RICO HIGHWAYS AND 

TRANSPORTATION AUTHORITY (“HTA”)

Debtor.

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PROMESA

Title III

No. 17 BK 3567-LTS

This Response relates only to HTA 

and shall be filed in the lead Case 

No. 17 BK 3283-LTS and Case No. 

17 BK 3567-LTS. 

RESPONSE TO MOTION INFORMING STATUS OF CASE AND REQUESTING

ORDER FILED BY ADRIAN MERCADO JIMENEZ

The Puerto Rico Fiscal Agency and Financial Advisory Authority (“AAFAF”), on behalf 

of the Puerto Rico Highways and Transportation Authority (“HTA”), pursuant to the authority 

 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); and (v) Puerto Rico Electric Power Authority (“PREPA”) (Bankruptcy Case No. 17 BK 4780-LTS) 

(Last Four Digits of Federal Tax ID: 3747). (Title III case numbers are listed as Bankruptcy Case numbers due to 

software limitations).

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granted to it under the Enabling Act of the Fiscal Agency and Financial Advisory Authority, Act 

2-2017, respectfully states and prays as follows.

2

Brief Procedural Background

1. On December 7, 2017, Adrián Mercado Jiménez (“Movant”) filed the Notice of

Compliance and Petition for Payment of Funds [Case No. 17 BK 3567-LTS, ECF No. 345], 

seeking payment of $16,448 from HTA (the “Settlement Amount”).

2. On February 5, 2018, Movant and HTA entered into a Stipulation (the 

“Stipulation”) modifying the automatic stay set forth in Bankruptcy Code sections 362(a) and 

922(a), made applicable to the Title III Case by PROMESA section 301(a), for the limited extent 

necessary to allow HTA to pay Movant the Settlement Amount due under a prepetition settlement 

offer made by Movant dated December 27, 2016 (the “Settlement Offer”). The Settlement Offer 

detailed that the Settlement Amount would be consigned into the Eminent Domain State Court 

(defined below).

3. On February 23, 2018, HTA consigned the Settlement Amount in the specialized 

state court assigned to eminent domain matters, the Trial Court of Puerto Rico, San Juan Section 

Chambers 1003 (the “Eminent Domain State Court”) in Autoridad de Carreteras y Transportación 

de Puerto Rico v. Sucn. de Luis Alberto Mercado Jiménez et al., Case No. K EF2011-0240.

4. On February 27, 2018, Movant filed the Motion Informing Status of Case and 

Requesting Order [Case No. 17 BK 3567-LTS, ECF No. 406] (the “Motion Informing Status”) 

where Movant alleges that the Settlement Amount was consigned in the Eminent Domain State 

Court proceeding rather than paid directly to Movant.

 2 The Financial Oversight and Management Board for Puerto Rico, as the Debtors’ representative pursuant to section 

315(b) of the Puerto Rico Oversight, Management, and Economic Stability Act (“PROMESA”), has authorized 

AAFAF to file this Response on behalf of HTA. 

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5. Nevertheless, despite filing the Motion Informing Status, on March 5, 2018, 

Movant also filed an Urgent Motion Requesting Withdrawal of Consigned Funds in the Eminent 

Domain State Court. See Exhibit A to this Response. 

Response to Motion Informing Status

6. HTA has complied with the Stipulation and applicable law to pay Movant the 

Settlement Amount, as it has already disbursed and paid the Settlement Amount by consigning it 

to the Eminent Domain State Court in accordance with Puerto Rico law. As detailed below, Puerto 

Rico law requires that such payment be consigned to the Eminent Domain State Court. For the 

reasons detailed below, the Court should deny Movant’s request in the Motion Informing Status, 

and allow the matters detailed therein to continue and conclude in the Eminent Domain State Court.

7. Although there were advanced negotiations in place that resulted in the preprepetition Settlement Offer, neither HTA nor Movant submitted any form of stipulation for 

consideration and approval by the Eminent Domain State Court. As a result, and following the 

execution of the Stipulation to modify the stay, HTA was required to comply with applicable state 

law and consign the Settlement Amount to the Eminent Domain State Court. The Stipulation did 

not except HTA from complying with applicable Puerto Rico law in making such Settlement 

Payment—only that it would pay to Movant the Settlement Amount within 14 days.3 Movant is 

aware of such procedure, as evidenced by (1) the Settlement Offer made by Movant that indicated 

that the Settlement Amount had to be consigned in the Eminent Domain State Court, and (2)

Movant’srequest on March 5, 2018 to the Eminent Domain State Court to withdraw the Settlement 

 3 Contrary to the allegations in the Motion Informing Status, although the Stipulation was dated February 5, 2018, 

Movant acknowledged that he received the Stipulation countersigned on February 9, 2018 and that the funds were 

deposited in the Eminent Domain State Court on February 23, 2018—well within the 14-day period required in 

the Stipulation for payment of the Settlement Amount.

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Amount consigned to the Eminent Domain State Court.

8. Furthermore, the terms of the Stipulation provides that it shall be construed and 

interpreted in accordance with the laws of Puerto Rico. [Case No. 17 BK 3567-LTS, ECF No.406, 

Exhibit B]. In that respect, eminent domain proceedings in Puerto Rico are regulated by the Puerto 

Rico Eminent Domain Law, 32 L.P.R.A. sec. 2905 et seq. and by Rule 58 of the Puerto Rico Rules 

of Civil Procedure, 32 L.P.R.A. Ap. V. 

9. In particular, the Puerto Rico Eminent Domain Law, as amended, 32 L.P.R.A. sec. 

2907 and Rule 58 of the Puerto Rico Rules of Civil Procedure direct HTA to consign with the 

Eminent Domain State Court the sum of money required by law, as a condition for the exercise of 

their eminent domain power. This consignment serves as the basis for the Eminent Domain State 

Court to determine whether the Settlement Amount constitutes just compensation. Id. Once the 

Eminent Domain State Court makes its determination, Movant may file a sworn motion for 

withdrawal or distribution of consigned funds, which Movant has already filed. Id

10. Following HTA’s consignment of the Settlement Amount and Movant’s request to 

withdraw the consigned funds, the Eminent Domain State Court entered, on March 26, 2018, a 

Resolution directing the parties to submit a joint motion regarding the settlement stipulation 

establishing the basis to justify the Settlement Amount in order for the Eminent Domain State 

Court to consider whether the Settlement Amount constitutes just compensation. See Exhibit B. 

Furthermore, and prior to considering any settlement, the Eminent Domain State Court ordered 

HTA to provide additional documents, including a memorandum of value of the land subject to 

the eminent domain case. Id. at 2-3. Likewise, Movant was instructed to provide, prior to 

considering any settlement, evidence of his title over the land, and to amend its request to withdraw

consigned funds to comply with Rule 58.9 of the Puerto Rico Rules of Civil Procedure. Id. at 3.

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Finally, the Court clarified that any additional amount to be adjudicated, such as the Settlement 

Amount, had to be distributed between all the title holders in the quantity that represents each of 

their rights over the land at the moment of the taking. Id. at 3-4.

11. Based on the foregoing, HTA has complied with the applicable procedure under 

Puerto Rico law, and Movant has already submitted his request to withdraw the consigned funds 

in the Eminent Domain State Court and that, as a result, HTA is in compliance with the Stipulation

and no further intervention is needed from this Court.

THEREFORE, HTA respectfully requests that this Court deny Movant’s Motion Informing 

Status of Case and Request of Order [Case No. 17 BK 3567-LTS, ECF No. 406].

Dated: April 20, 2018 

San Juan, Puerto Rico 

Respectfully submitted, 

/s/Luis C. Marini-Biaggi

Luis C. Marini-Biaggi

USDC No. 222301 

Email: lmarini@mpmlawpr.com

/s/Carolina Velaz-Rivero

Carolina Velaz-Rivero

USDC No. 300913

Email: cvelaz@mpmlawpr.com

MARINI PIETRANTONI MUÑIZ LLC

MCS Plaza, Suite 500

255 Ponce de León Ave.

San Juan, Puerto Rico 00917

Tel: (787) 705-2171

Fax: (787) 936-7494

Attorneys for the Puerto Rico Fiscal 

Agency and Financial Advisory Authority

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