Aside from the disputes with suppliers and bondholders, who have tens of millions on the line, the government has used its bankruptcy case, filed under Title III, to stop any kind of legal proceedings against it.

Be it at the federal or state level, over collections or right infringements, the stay on litigations provided by Title III has been used by the government to put a stop to hundreds of cases that had been active and not even gotten to the sentencing stage.

The judge leading the Title III case, Laura Taylor Swain, has already had to intervene in a confiscation case where the return of a vehicle to its owner had been halted because of the bankruptcy. And NotiCel had also reported on the bankruptcy case of the Highways and Transportation Authority (PRHTA), where approximately $3 million—owed in expropriation cases—had been put on hold.

But now Judge Swain has also received a case of civil rights violations in the workplace, where the plaintiff seeks to be reinstated. The government petitioned a stay on this litigation because of the bankruptcy.

Luz Pizarro Correa, former employee of the Department of Hacienda (Treasury), sued the government and her supervisors in Federal Court for discrimination on the basis of age and disability, among other reasons.

'Her lawsuit is based on federal laws against discrimination in the workplace. It is not related to any debt collections. The plaintiff is not an investor or creditor looking to seize assets from the government. The plaintiff's claims can and should be excluded from the bankruptcy process, given that her lawsuit has little or no effect on this bankruptcy. The undue distress caused by stalling her successful reinstatement is unnecessary for the government to satisfactorily complete its bankruptcy. Besides, the plaintiff's claim seeks to change her employer's behavior towards disabled employees like her,' states the motion submitted by attorney Humberto Cobo Estrella to Judge Swain.

The judge presiding Puerto Rico's bankruptcy is also seeing another case asking for an exception to the stay in a dispute regarding use of land. NotiCel learned that the government has petitioned to stay dozens of cases of various kinds that were pending when they filed for bankruptcy and that have no direct relation with debt collections.