UNITED STATES BANKRUPTCY 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

Debtor

PROMESA, Title III

Case No. 17-BK-3283 (LTS)

MEMORANDUMN AND ORDER GRANTING MOTION REQUESTING 

RELIEF FROM THE AUTOMATIC STAY

Mitsubishi Motor Sales of Caribbean, Inc. (“MMSC”), plaintiff in a civil action filed 

before the Puerto Rico Court of First Instance, San Juan Section, styled Mitsubishi Motor Sales 

of Caribbean, Inc. v. Hon. Raul Maldonado Gautier, as Secretary of the Puerto Rico Treasury 

Department, et al., Civil No. KCO 2016-0026 (903), regarding a request for declaratory 

judgment and refund of excise taxes paid in excess by MMSC, which has been stayed pursuant 

to Title III of PROMESA, has filed a Motion Requesting Relief from Automatic Stay.

MMSC moves under Section 362(d)(1) of the United States Bankruptcy Code claiming 

that in the above referenced civil action: 

(1) a declaratory judgment is warranted to determine that the Secretary of the Puerto Rico 

Treasury Department acted in an ultra vires manner, usurping and/or attributing 

powers that he does not have regarding the implementation of the imposition of excise 

taxes with respect to new motor vehicles imported into Puerto Rico by MMSC, 

illegally imposing additional taxes on the brand new Mitsubishi motor vehicles that 

MMSC imported into Puerto Rico, which shall otherwise be governed by Sections 

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3010.01(a)(11) and 3020.08(c)(1) of the Internal Revenue Code of Puerto Rico

(“IRC”); and,

(2) pursuant to the aforementioned illegal imposition of excise taxes, a vacate of the 

denial for refund of excise taxes paid in excess by MMSC, amounting to $48,283.18,

as per Exhibits B and C of MMSC’s motion requesting relief from automatic stay, plus 

interest accrued and corresponding, in accordance with the provisions of Section 

6025.03 of the IRC, is warranted as a matter of law.

Debtor has filed an objection to MMSC’s Motion Requesting Relief from Automatic Stay 

and this Court has considered fully the arguments of the parties. It is this Court’s considered 

opinion that there is cause to lift the automatic stay regarding MMSC’s cause of action related to 

the entering of a declaratory judgment since it only entails a pronouncement from the local court 

regarding applicable law. This Court further finds that there is cause to lift the automatic stay as 

to MMSC’s cause of action regarding the refund of excise taxes paid in excess by MMSC, but 

this Court specifically directs the local court that, should it find that a vacate of the denial by the 

Secretary of the Puerto Rico Treasury Department is warranted, the lift from the automatic stay 

will only be permitted for the refund of excise taxes paid in excess by MMSC in the form of a 

credit to be granted to MMSC for the payment of future excise taxes to the Puerto Rico Treasury 

Department. This Memorandum and Order resolves docket entry number ______ in case no. 17-

BK-3283-LTS.

REGISTERED AND ORDERED.

Dated: _____________, 2018

/s/Laura Taylor Swain

_______________________

LAURA TAYLOR SWAIN

United States District Court Judge

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