IN THE UNITED STATES BANKRUPTCY COURT

FOR THE DISTRICT OF PUERTO RICO

IN RE:

THE FINANCIAL OVERSIGHT AND 

MANAGEMENT BOARD FOR PUERTO RICO

 

As representative for

THE COMMONWEALTH OF PUERTO RICO

Debtor

PROMESA

Title III

NO. 17 BK 3283 (LTS)

MOTION FOR RELIEF FROM STAY

TO THE HONORABLE COURT:

COMES NOW Manuel L. Morales-Schmidt, Esq., legal representative for Emmanuel 

Aponte-Colón (“Mr. Aponte-Colón” or “Movant”), and respectfully moves for an Order 

pursuant to 11 U.S.C. §362 for relief from the Automatic Stay and, in support of its motion, states 

and prays as follows:

1. On January 26, 2017, Movant filed a Claim against the Commonwealth of Puerto Rico, 

Emmanuel Aponte-Colón v. Estado Libre Asociado de Puerto Rico, KAC2017-0090, under 

the Uniform Forfeiture Act of 2011, 34 L.P.R.A. §1724 et seq., before the Court of First 

Instance in and for the Municipality of San Juan to contest the forfeiture of his automobile as 

a result of a criminal investigation. The vehicle in question is a 2007 Toyota Scion.

2. The basis for contesting the forfeiture is the lack of compliance of the Forfeiture Board with 

Article 13 of the Forfeiture Act, 34 L.P.R.A. §1724j, which states that the forfeiture must be 

notified by certified mail to the owner and any other person with interest on the vehicle within 

the jurisdictional term of thirty (30) days from the date when the property was seized. 

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3. In that case the Forfeiture Board notified the forfeiture of the vehicle 93 days after it was seized 

since the intervention and seizure was on October 3, 2016 and the order of forfeiture was 

notified on January 4, 2017. Following on Puerto Rico Supreme Court doctrine with regards 

to the interpretation of this statute, the forfeiture is null and void ab initio and the vehicle must 

be returned to the owner. 

4. The case is pending only a hearing required by Art. 15 of the Uniform Act, 34 L.P.R.A. §1724l,

to establish that Movant is the owner or a party with interest, which he is since the vehicle 

registration is under his name, in order to have standing for the claim and obtain a summary 

judgment in his favor to have the Court order the return of the vehicle. The Motion for 

Summary Judgement was filed on March 2, 2017. 

5. On May 31, 2017, the Commonwealth of Puerto Rico filed a motion informing the Court in 

that case that it had filed a bankruptcy petition under Title III of PROMESA, case no. 17-1578 

(“Petition”), and that the filing of the Petition would have the effect of enforcing an automatic 

stay pursuant to Section 301(a) of PROMESA (“Section 301(a)”).

6. Section 301 (a) states that, among other things, 11 U.S.C. §362 of the United States Bankruptcy 

Code is applicable to petition under Title III of PROMESA.

7. The automatic stay of case KAC2017-0090 should be lifted pursuant to 11 U.S.C. §362 (d)(1) 

for cause, including but not limited to, lack of adequate protection.

8. In accordance with 11 U.S.C. §362 (d)(2), the automatic stay should be lifted because the 

Commonwealth of Puerto Rico has no equity in the seized vehicle as the forfeiture is null and 

void ab initio for lack of compliance with the jurisdictional term to notify the forfeiture

pursuant to 34 L.P.R.A. §1724j. Neither is the property necessary to an effective 

reorganization of the Commonwealth of Puerto Rico.

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9. At the time this Motion has been filed, the Commonwealth of Puerto Rico does not have a 

proprietary interest in the vehicle since in accordance with Art. 18 of the Uniform Act, 34 

L.P.R.A. §1724o, the property can only be transferred to the Forfeiture Board if the term of 30

days to present the claim once the notification is sent, elapses without any of the parties with 

interest filing a claim to contest the forfeiture, which is not the case here.

10. Should relief be denied, Movant will suffer irreparable damages since the vehicle could be sold 

in auction by the Commonwealth as the Uniform Act does allow sale of the vehicle even while 

the case is pending and once sold, all Movant is entitled to is the appraised value, which is 

typically under 50% the real value, and payment would take over 18 months to be made after 

the order.

WHEREFORE, for the reasons set forth above, Movant respectfully requests that this Court 

enter an order granting relief from the automatic stay allowing Movant to continue to contest the 

forfeiture of his vehicle currently pending before the Court for and in the Municipality of San Juan 

and to pursue any such additional actions as may be necessary with respect to her automobile and 

for such other and further relief as this Court deems appropriate. 

RESPECTFULLY SUBMITTED, in San Juan, Puerto Rico, this 16th day of June 2017. 

S/Manuel L. Morales Schmidt

Manuel L. Morales-Schmidt

USDC-PR#301608

Urb. Sta. Cruz

Esteban Padilla #47 Ste. 1-A

Bayamón, P.R. 00961

Tel.: (787) 993-2109

Fax: (787) 946-1767 

lcdo.manuelmorales@delgado-morales.com

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