Rivera Torres v. Junta De Retiro Para Maestros

Decision Date23 August 2007
Docket NumberCivil No. 04-2226 (GAG).
PartiesMilagros RIVERA TORRES, Plaintiff v. JUNTA DE RETIRO PARA MAESTROS, Defendant.
CourtU.S. District Court — District of Puerto Rico

Peter John Porrata, Peter John Porrata Law Office, San Juan, PR, for Plaintiff.

Anita Montaner-Sevillano, McConnell Valdes, Francisco A. Ojeda-Diez, P.R. Department of Justice, Federal Litigation, Pedro J. Salicrup, Salicrup & Assoc., San Juan, PR, for Defendant.

ORDER ADOPTING REPORT AND RECOMMENDATION

GUSTAVO A. GELPÍ, District Judge.

The plaintiff, Milagros Rivera Torres ("Rivera"), filed this action against the defendant, Sistema de Retiro para Maestros ("SRM"),1 alleging violations of the Age Discrimination in Employment Act of 1967, 29 U.S.C. §§ 621-634, and Puerto Rico Law No. 100 of June 30, 1959, P.R. Laws Ann. tit 29, §§ 146-151. See Docket Nos. 1, 48. SRM moved to dismiss the complaint on Eleventh Amendment immunity grounds. See Docket No. 40. District Judge Jay A. Garcia-Gregory2 denied the motion to dismiss holding that SRM failed to demonstrate that it is an "arm" of the Commonwealth of Puerto Rico. In reaching this conclusion, Judge Garcia-Gregory primarily relied upon SRM's Enabling Act, P.R. Laws Ann. tit. 18, §§ 391-392w. See Docket No. 52. SRM moved for reconsideration of Judge Garcia-Gregory's opinion and order. See Docket Nos. 53, 55. The court referred the motion Magistrate Judge Marcos E. Lopez for a report and recommendation. See Docket No. 62. The parties fully briefed the Eleventh Amendment immunity issue, and Magistrate Judge Lopez conducted a hearing on the same. See Docket Nos. 61, 66, 68, 70. After conducting a thorough analysis of the pertinent facts, SRM's Enabling Act, and other applicable law, the Magistrate Judge recommended denial of SRM's motion for reconsideration. See Docket No. 72. SRM timely objected to the report and recommendation. See Docket No. 73. Rivera responded to SRM's objections. See Docket No. 76.

After conducting a de novo review of the report and recommendation and SRM's specific objections thereto, the court finds no reason to depart from Judge Garcia-Gregory and Magistrate Judge López' determinations.3 As part of its de novo review of the report and recommendation, the court fully considered the Commonwealth's position, which essentially restates SRM's arguments.4 Moreover, SRM's assertion that it does not maintain a reserve fund to satisfy labor judgments, notwithstanding information on its website to the contrary, does not alter the court's conclusion.5 SRM has failed to carry its burden to demonstrate that it is an "arm" of the Commonwealth for purposes of Eleventh Amendment immunity.

The Eleventh Amendment bars suits against states for money damages unless the state waives its immunity or consents to suit. Kentucky v. Graham, 473 U.S. 159, 169, 105 S.Ct. 3099, 87 L.Ed.2d 114 (1985); Metcalf & Eddy v. P.R. Aqueduct & Sewer Auth., 991 F.2d 935, 938 (1st Cir.1993). Eleventh Amendment immunity extends to "arms" or "alter egos" of the states. Fresenius Med. Care Cardiovascular Res., Inc. v. P.R. & the Caribbean Cardiovascular Ctr. Corp., 322 F.3d 56, 61 (1st Cir.2003); Royal Caribbean Corp. v. P.R. Ports Auth., 973 F.2d 8, 9 (1st Cir.1992).

The question of whether an entity is an "arm" of the state, and thus entitled to Eleventh Amendment immunity, is an issue of federal law. Regents of the Univ. of Cal. v. Doe, 519 U.S. 425, 429 n. 5, 117 S.Ct. 900, 137 L.Ed.2d 55 (1997). It is well-established that the Commonwealth of Puerto Rico is considered a state for Eleventh Amendment purposes. See P.R. Ports Auth. v. M/V Manhattan Prince, 897 F.2d 1, 9 (1st Cir.1990). The entity seeking Eleventh Amendment immunity bears the burden of providing convincing evidence that it is an "arm" of the state. Wojcik v. Mass. State Lottery Comm'n, 300 F.3d 92, 99 (1st Cir.2002).

To determine whether a government instrumentality is an "arm" of the state, the court applies a two-step analysis that focuses on the entity's structure and the vulnerability of the state's purse. First, the court analyzes whether the state clearly structured the entity to share its sovereignty: Second, if the structural indicators point in different directions, the court assesses the risk of damages being paid from the state's treasury. Pastrana-Torres v. Corporación De P.R. Para La Difusión Pública, 460 F.3d 124, 126; Fresenius, 322 F.3d at 68.

In this case, the structural indicators point in different directions; they do not demonstrate that the Commonwealth "clearly structured" SRM to share its sovereignty. Fresenius, 322 F.3d at 68. Consequently, the dispositive question concerns the risk that damages will be paid from the Commonwealth's purse. The Commonwealth is not legally bound to pay SRM's indebtedness. Nor do the facts concerning the Commonwealth's financial contributions and obligations to SRM indicate that a judgment against SRM would directly or indirectly "deplete the state treasury." Id. at 75. SRM, therefore, has not demonstrated with convincing evidence that it is an "arm" of the Commonwealth for purposes of Eleventh Amendment immunity.

Accordingly, the court reaffirms Judge Garcia-Gregory's denial of the motion to dismiss. The court ADOPTS Magistrate Judge Lopez' report and recommendation (Docket No. 72) in its entirety and DENIES SRM's motion for reconsideration (Docket Nos. 53, 55).

IV. Conclusion

SO ORDERED.

REPORT AND RECOMMENDATION

LÓPEZ, United States Magistrate Judge.

I. PROCEDURAL BACKGROUND

On November 5, 2004, plaintiff Milagros Rivera Torres (hereinafter referred to as "Rivera") filed a complaint against defendant Junta de Retiro para Maestros (hereinafter referred to as "SRM" in reference to "Sistema de Retiro para. Maestros") pursuant to the Age Discrimination in Employment Act of 1967, 29 U.S.C. § 621 et seq. (hereinafter referred to as "ADEA") and Puerto Rico Act. No. 100, 29 L.P.R.A. § 146 et seq. Docket 1. SRM answered the complaint on January 5, 2005. Docket 7.

A Motion to Dismiss under Federal Rule of Civil Procedure 12(b)(6) was filed by SRM on May 3, 2006, alleging that the Eleventh Amendment to the United States Constitution precludes plaintiff from filing the instant suit under ADEA. Docket 40. An opposition to said motion and an amended complaint were filed on June 1, 2006. Dockets 47-48. A reply, to the opposition was filed on June 12, 2006. Docket 49.

On September 25, 2006, the Honorable Judge Jay A. García Gregory issued an opinion and order regarding the motion to dismiss on immunity grounds. In said opinion and order, the Court denied the motion to dismiss indicating that SRM had failed to show that it is an "arm" of the Commonwealth of Puerto Rico (hereinafter referred to as "Commonwealth") for Eleventh Amendment purposes. In its reasoning, the Court stated that SRM's Enabling Act creates an "entity independent and separate from others of the Government of Puerto Rico." 18 L.P.R.A. § 391b. Moreover, the Court noted that SRM "is explicitly empowered to sue and be sued, and `to prepare and approve an expense budget for its government and administration.'" 18 L.P.R.A. § 391d(a) and (c). Furthermore, the Court placed particular emphasis on Section 61 of the Enabling Act which provides that

[a]ll debts, obligations, and responsibilities, including the active pensions of the teachers and their beneficiaries, as well as the obligation to fulfill and the right to receive the benefits of any judgment that may be pronounced against or in favor the Teacher's Retirement Board after the approval of this Act, are hereby transferred to the [SRM].

18 L.P.R.A. 391(nt).

On October 5, 2006, SRM moved the Court to reconsider its opinion and order denying the motion to dismiss. Dockets 53 and 55.1 An opposition to the motion for reconsideration was filed by plaintiff on November 28, 2006. Docket 61. Subsequently, the motion for reconsideration was referred by the Honorable Judge Gustavo A. Gelpí to the undersigned magistrate judge for a report and recommendation. Docket 62.2

A special appearance was also made on the matter of reconsideration by the Commonwealth on February 1, 2007. Docket 66. A brief opposition to the Commonwealth's motion was filed by plaintiff on February 8, 2007. Docket 68. A hearing on the motion for reconsideration and related motions was held on May 16, 2007.

II. LEGAL FRAMEWORKS3

The Eleventh Amendment reads: "The Judicial power of the United States shall not be construed to extend to any suit in law or equity, commenced or prosecuted against one of the United States by Citizens of another State, or by Citizens or Subjects of any Foreign State." U.S. Const. amend. XI. Despite the clear language of the Eleventh Amendment, has been extended to apply to suits against a particular state by its own citizens. León Lopez v. Corporation Insular de Seguros, 931 F.2d 116, 121 (1st Cir.1991). It is well established that the Commonwealth is considered a state for Eleventh Amendment purposes. P.R. Ports Auth. v. M/V Manhattan Prince, 897 F.2d 1, 9 (1st Cir.1990).

The state's interests in asserting Eleventh Amendment immunity are to protect its public treasury and its dignity as a sovereign in not being haled into federal court. Fed. Mar. Comm'n v. S.C. State Ports. Auth., 535 U.S. 743, 122 S.Ct. 1864, 152 L.Ed.2d 962 (2002). "[T]he amendment's raiment unravels if any one of four circumstances eventuates: a state may randomly consent to suit in a federal forum; a state may waive its own immunity by statute or the like; Congress may sometimes abrogate state immunity (so long as it speaks clearly and acts in furtherance of particular powers); or under certain circumstances other constitutional imperatives may take precedence over the Eleventh Amendment's federal-court bar." Metcalf & Eddy, Inc. v. Puerto Rico Aqueduct and Sewer Authority, 991 F.2d 935, 938 (1st Cir.1993).

The issue of whether a particular entity is an arm of...

To continue reading

Request your trial
11 cases
  • Compagnie Maritime Marfret v. San Juan Bay Pilots
    • United States
    • U.S. District Court — District of Puerto Rico
    • January 24, 2008
    ...factual attack asserts that jurisdiction is lacking on the basis of facts outside of the pleadings." Rivera Torres v. Junta de Retiro Para Maestros, 502 F.Supp.2d 242, 247 n. 3 (D.P.R.2007) (internal quotation marks and citations "Facial attacks on a complaint require the court merely to lo......
  • Lopez-Ramos v. Cemex de P.R., Inc.
    • United States
    • U.S. District Court — District of Puerto Rico
    • August 12, 2020
    ...complaint and 'can look beyond the pleadings to decide factual matters relating to jurisdiction.'" Rivera Torres v. Junta de Retiro Para Maestros, 502 F. Supp. 2d 242, 247 n. 3 (D.P.R. 2007) (quotation omitted). B. Dismissal for failure to state a claim upon which relief can be granted unde......
  • Lopez-Ramos v. Cemex de P.R., Inc.
    • United States
    • U.S. District Court — District of Puerto Rico
    • September 1, 2020
    ...complaint and 'can look beyond the pleadings to decide factual matters relating to jurisdiction.'" Rivera Torres v. Junta de Retiro Para Maestros, 502 F. Supp. 2d 242, 247 n. 3 (D.P.R. 2007) (quotation omitted). B. Dismissal for failure to state a claim upon which relief can be granted unde......
  • Borrelli v. RiverCliff Farm, Inc. (In re Heng Cheong Pac. Ltd.)
    • United States
    • U.S. Bankruptcy Court — District of Puerto Rico
    • August 24, 2020
    ...factual attack asserts that jurisdiction is lacking on the basis of facts outside of the pleadings." Rivera Torres v. Junta de Retiro para Maestros, 502 F.Supp.2d 242, 247 n.3 (D.P.R. 2007) (internal quotation marks and citations omitted). The court must construe the complaint liberally, tr......
  • Request a trial to view additional results

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT