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Financial Oversight And Management Board For Puerto Rico v. Aurelius Investment, Llc

• 2019 • 140 S. Ct. 1649 • Roberts Court
The U.S. Supreme Court case Financial Oversight and Management Board for Puerto Rico v. Aurelius Investment, LLC (2019) revolved around the constitutionality of appointments to the Financial Oversight and Management Board for Puerto Rico, a body created by Congress in 2016 to address the territory's financial crisis. The board was challenged by hedge fund Aurelius Investment and a labor union who argued that its members were officers of the United States but had not been appointed in accordance...Open Case
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Chief Roberts Court
Term: 2019
Docket: 18-1334
140 S. Ct. 1649
207 L. Ed. 2d 18
2020 U.S. LEXIS 3039
Argued: Oct 15, 2019

Financial Oversight And Management Board For Puerto Rico v. Aurelius Investment, Llc

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Questions presented:
SCOTUS Records

18-1334 FINANCIAL OVERSIGHT AND MANAGEMENT BOARD FOR PUERTO RICO V. AURELIUS INVESTMENT, LLC DECISION BELOW: 915 F.3d 838 CONSOLIDATED WITH 18-1475, 18-1496, 18-1514 AND 18-1521, AND WILL BE SET FOR ARGUMENT IN THE SECOND WEEK OF THE OCTOBER 2019 ARGUMENT SESSION. CERT. GRANTED 6/20/2019 QUESTION PRESENTED: Whether the Appointments Clause governs the appointment of members of the Financial Oversight and Management Board for Puerto Rico. LOWER COURT CASE NUMBER: 18-1671, 18-1746, 18-1787

Opinion Summary
AI Abstract

The U.S. Supreme Court case Financial Oversight and Management Board for Puerto Rico v. Aurelius Investment, LLC (2019) revolved around the constitutionality of appointments to the Financial Oversight and Management Board for Puerto Rico, a body created by Congress in 2016 to address the territory's financial crisis. The board was challenged by hedge fund Aurelius Investment and a labor union who argued that its members were officers of the United States but had not been appointed in accordance with the Appointments Clause of the Constitution. However, in a unanimous decision delivered by Justice Stephen Breyer, it was held that while board members are indeed officers of Puerto Rico rather than federal officials, their duties are primarily local and do not require Senate confirmation under Article II’s Appointments Clause as they don't exercise significant authority pursuant to laws of United States.

Dissent Summary
AI Abstract

In the dissenting opinion for Financial Oversight and Management Board for Puerto Rico v. Aurelius Investment, LLC, Justice Thomas argued that the Appointments Clause of the U.S. Constitution applies to all federal officers including those with duties in non-state territories like Puerto Rico. He disagreed with the majority's view that Congress can establish offices without adhering to constitutional appointment procedures if their duties are primarily local. According to him, this interpretation is inconsistent with historical practices and undermines constitutional safeguards designed to prevent concentration of power. Furthermore, he contended that members of the Financial Oversight and Management Board were indeed "Officers of The United States" as they exercised significant authority under U.S law; hence should have been appointed according to rules set out in Article II Section 2 Clause 2 (Appointments Clause) rather than by mere statute.

Opinion written by Justice SGBreyer
Decided: Jun 01, 2020
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