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 No. 4071

(Jointly Administered)

In re:

THE FINANCIAL OVERSIGHT AND 

MANAGEMENT BOARD FOR PUERTO RICO,

as representative of 

THE COMMONWEALTH OF PUERTO RICO

Debtor.

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PROMESA

Title III

No. 17 BK 3283-LTS

This Motion relates only to the 

Commonwealth and shall only 

be filed in the lead Case No. 17 

BK 3283-LTS.

UNOPPOSED MOTION OF COMMONWEALTH OF PUERTO RICO 

FOR LEAVE TO FILE SUR-REPLY TO MOVANTS’ 

REPLY TO OBJECTION OF THE COMMONWEALTH TO MOTION 

FOR RELIEF FROM AUTOMATIC STAY FILED BY AMPR AND AMPR-LS

To the Honorable United States District Court Judge Laura Taylor Swain:

The Commonwealth of Puerto Rico (the “Commonwealth”) respectfully submits this 

motion, pursuant to Section III.L of the Seventh Amended Notice, Case Management 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 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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Administrative Procedures [ECF No. 4086-1] (the “Case Management Procedures”), for leave for 

file a sur-reply to the Movants’ Reply to Objection of the Commonwealth to Motion for Relief from 

Automatic Stay Filed by AMPR and AMPR-LS [ECF No. 4071] (the “Reply”) filed by Asociación 

de Maestros de Puerto Rico (“AMPR”), and its Union, Asociación de Maestros de Puerto RicoLocal Sindical (“AMPR-LS” and together with AMPR, “Movants”).

2

 In support of its motion for 

leave, the Commonwealth respectfully represents as follows:3 

PRELIMINARY STATEMENT

1. The Commonwealth seeks leave to file its sur-reply to address an argument first 

raised in the Reply: the contention that “the Government Parties expressly excluded Movants’ 

claims from the Bar Date Order [ECF No. 2521] and thus, excluded the Lawsuit indirectly or 

directly, from the application of the Title III automatic stay and the claims resolution process of 

the Commonwealth Title III case.” Reply ¶ 1. The Commonwealth’s proposed sur-reply, attached 

hereto as Exhibit 1 (the “Sur-Reply”), addresses the new argument raised in the Reply.

2. The Commonwealth has not had the opportunity to respond to this new argument 

and certain misinterpretations of the Order (A) Establishing Deadlines and Procedures for Filing 

Proofs of Claim and (B) Approving Form and Manner of Notice Thereof [ECF No. 2521] (the “Bar 

Date Order”). The Commonwealth requests that the Court grant this motion and give it leave to 

file the Sur-Reply.

 

2 The Financial Oversight and Management Board for Puerto Rico, as the Commonwealth’s representative pursuant 

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

authorized the Department of Justice to file this Motion on behalf of the Commonwealth. 

3 Capitalized terms not otherwise defined herein shall have the same meanings given to them in the Objection of the 

Commonwealth to Motion for Relief from Automatic Stay Filed By Asociación de Maestros de Puerto Rico, and Its 

Union, Asociación de Maestros de Puerto Rico-Local Sindical [ECF No. 4038]. 

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BACKGROUND

3. On September 10, 2018, Movants filed the Motion seeking to lift the automatic stay 

to proceed with the Lawsuit against the Commonwealth, the Department of Education, and the 

Secretary of Education, and for Movants to enforce any judgment entered in the Lawsuit. The 

Motion did not challenge the applicability of the automatic stay based on the purported exclusion 

of Movants’ claims from the proof of claim filing requirements of the Bar Date Order.

4. On October 10, 2018, the Commonwealth filed the Objection of the Commonwealth

to Motion for Relief from Automatic Stay Filed By Asociación de Maestros de Puerto Rico, and Its 

Union, Asociación de Maestros de Puerto Rico-Local Sindical [ECF No. 4038] (the “Objection”).

5. On October 19, 2018, Movants filed the Reply, which raised for the first time the 

argument that “the Government Parties expressly excluded Movants’ claims from the Bar Date 

Order [ECF No. 2521] and thus, excluded the Lawsuit indirectly or directly, from the application 

of the Title III automatic stay and the claims resolution process of the Commonwealth Title III 

case.” Reply ¶ 1. On the same day, Movants also filed the Notice of Hearing on AMPR and 

AMPR-LS Reply to Objection of the Commonwealth to Motion for Relief from Automatic Stay 

Filed by AMPR and AMPR-LS [ECF NO. 4077], requesting a hearing on the Motion at the omnibus 

hearing scheduled on November 7, 2018.

6. The Commonwealth conferred with Movants’ counsel to request their consent to 

the filing of the Commonwealth’s Sur-Reply. Movants’ counsel does not object to the 

Commonwealth’s filing of the Sur-Reply.

ARGUMENT

7. Under Section III.L. of the Case Management Procedures, sur-replies must be 

authorized by the Court. The Court can and should permit the Commonwealth to file a sur-reply 

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to address Movants’ new argument regarding the Bar Date Order. See Atlanta Fiberglass USA, 

LLC v. KPI, Co., 911 F. Supp. 2d 1247, 1262 (N.D. Ga. 2012) (“surreplies typically will be 

permitted only in unusual circumstances, such as where a movant raises new arguments or facts in 

a reply brief . . .”); Hammett v. Am. Bankers Ins. Co., 203 F.R.D. 690, 695 (S.D. Fla. 2001) 

(“Because Plaintiff presented new arguments and a new theory for certification in her Reply the 

Court will grant Defendants’ Motion for Leave to File a Sur–Reply and Plaintiff's Motion for 

Leave to File a Response to Defendants’ Sur–Reply.”).

8. The Commonwealth has not had the opportunity to address Movants’ Bar Date 

Order argument. As noted above, the argument did not arise until after the Commonwealth filed 

its Objection. The Commonwealth did not address this argument in its Objection because the Bar 

Date Order has no relation to the scope and applicability of the automatic stay. Furthermore, it is 

necessary for the Commonwealth to address certain misinterpretations of the Bar Date Order 

contained in the Reply, as well as the undisputed fact that the Movants filed a proof of claim 

asserting these claims on behalf of the affected individuals.

Remainder of Page Intentionally Left Blank 

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WHEREFORE, the Commonwealth respectfully requests that the Court authorize the 

Commonwealth to file the attached Sur-Reply.

Dated: October 26, 2018

San Juan, Puerto Rico 

Respectfully submitted, 

WANDA VÁZQUEZ GARCED 

Secretary of Justice 

/s/ Wandymar Burgos Vargas

WANDYMAR BURGOS VARGAS 

USDC 223502 

Deputy Secretary in Litigation 

Department of Justice 

P.O. Box 9020192 

San Juan, Puerto Rico 00902-0192 

Phone: 787-721-2940 Ext. 2500, 2501

wburgos@justicia.pr.gov 

Attorneys for the Commonwealth of Puerto Rico 

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