This is a straightforward challenge to at-will presidential firings of statutorily protected territorial officers, relying heavily on PROMESA’s text and Supreme Court rulings distinguishing territorial from federal executive structures. The case was filed with a jury demand.
Summary of DN 1 – Complaint for Declaratory and Injunctive Relief
Case No. 25-CV-1508, U.S. District Court for the District of Puerto Rico
Filed September 18, 2025
Key Parties
Plaintiffs (suing in both personal and official capacities):
- Arthur J. Gonzalez (Chair; appointed by Obama, reappointed by Trump and Biden; term expires 2027)
- Andrew G. Biggs (appointed by Obama, reappointed by Trump and Biden; term expires 2027)
- Betty A. Rosa (appointed by Trump, reappointed by Biden; term expires 2027)
Defendants (all sued in official capacities):
- Sergio Gor (Director, White House Presidential Personnel Office)
- John E. Nixon (Member, FOMB )
- Robert F. Mujica (Executive Director, FOMB)
- Donald J. Trump (President, USA)
Core Facts Alleged
- The FOMB was created by Congress in 2016 under PROMESA (48 U.S.C. § 2121 et seq.) as an independent agency “within the territorial government” of Puerto Rico, not part of the federal executive branch.
- Its primary role is to oversee Puerto Rico’s fiscal plans, budgets, borrowing, and debt restructuring, as well as representing the island in Title III debt restructuring bankruptcy cases.
- By statute, the President may remove FOMB members “only for cause” (48 U.S.C. § 2121(e)(5)(B)). Members serve fixed 3-year terms (renewable) and are largely selected from congressional leadership lists, with one at the President’s sole discretion.
- On August 1, 2025, Gonzalez and Rosa received identical one-sentence emails from the Deputy Director of the White House Office of Presidential Personnel stating they were “terminated effective immediately” with no reason given. Biggs received the same email on August 13, 2025. No cause, notice, or hearing was provided.
- Three other members were also removed around the same time.
Main Legal Arguments
- Statutory Violation (PROMESA):
The “for cause” protection prohibits at-will removal. The emails provided no cause, violating the statute outright and depriving plaintiffs of their statutory right to notice and a hearing. - Constitutional Limits on Presidential Power:
Citing Supreme Court precedent (Financial Oversight & Management Bd. v. Aurelius Investment, 590 U.S. 448 (2020)), the FOMB is part of Puerto Rico’s territorial government under Article IV, not the federal executive branch under Article II. Therefore, the President’s Article II removal authority over executive officers does not apply. Allowing such removals would let the President fire any territorial officer (or even D.C. officers) at will. - Fifth Amendment Due Process:
The “for cause” protection creates a property interest in continued service. Removal without any notice or opportunity to respond violates procedural due process (Cleveland Bd. of Educ. v. Loudermill). - Additional Claims:
Administrative Procedure Act (against Gor), separation of powers, Declaratory Judgment Act or in the alternative a writ of mandamus, and general equitable relief to enjoin ongoing violations of federal law.
Relief Requested
- Declare the August 2025 removal letters unlawful and ineffective.
- Declare that plaintiffs remain lawful FOMB members who can be removed only for cause.
- Enjoin defendants from treating them as removed and order their immediate reinstatement to all prior positions (including Gonzalez as Chair).
- Issue a writ of mandamus and other equitable/injunctive relief.
- Award costs and attorney’s fees.
Broader Stakes
The complaint emphasizes that if the President can ignore statutory removal protections for territorial officers who exercise no federal executive power, it would undermine Congress’s authority over U.S. territories and the District of Columbia.
