Arecibo Community Health Care, Inc. v. Puerto Rico

OPINION ON REHEARING

TORRUELLA, Circuit Judge.

This appeal requires us to determine the validity of § 106(b) of the Bankruptcy Code, 11 U.S.C. § 106(b),1 in light of the Supreme Court’s most recent Eleventh Amendment jurisprudence.2 Upon initial review, we concluded that § 106(b) was constitutionally infirm. After rehearing and helpful supplemental briefing, however, we reach a different determination and conclude that our earlier decision misinterpreted recent Supreme Court precedent and, in doing so, failed to accord proper controlling value to an extant decision of this circuit.

We therefore…