Agenda - Planning Commission - 10/06/2011

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Zoning Bulletin August 10, 2011 [ Volume 5 1 No. 15 on which it planned to construct the Project. The Regulations and Permits Ad- ministration of Puerto Rico (the "ARPE," for its Spanish acronym) issued all necessary permits for the development of the Project. San Geronimo began con- struction in August 2002. By 2007, San Geronimo had invested over $200 mil- lion in construction of the Project, which was nearing completion. During construction, a persistent group of citizens raised concerns that the Project obstructed access to the San Geronimo del Boqueron Fort. There had been some controversy regarding whether the lands on which the Proj- ect was being built were part of the public domain and had therefore been improperly sold to a private party without necessary legislative action. In 2002, a Department of Justice of Puerto Rico opinion determined that the lands were not part of the public domain. However, in December 2007, that opinion was reversed. Based on that reversal, on December 12, 2007, the governor of Puerto Rico, Anibal Acevedo Vila, ordered the pertinent ad- ministrative agencies to suspend all permits for the Project and to freeze all construction for an initial period of 60 days. On December 14, 2007, the administrator of ARPE invoked Puerto Rico's emergency adjudicatory proce- dure and issued an order to show cause why the Project permits should not be held in abeyance and the construction suspended for 60 days. The ARPE scheduled a hearing for December 20, 2007. At that hearing, the ARPE did not introduce any evidence against San Geronimo and did not charge it with any violations. On December 27, 2007, the ARPE's administrator issued a resolution and order holding the permits in abeyance and ceasing construc- tion for a period of 60 days, subject to extension "in the public interest." San Geronimo appealed the ARPE's order. Eventually, the Puerto Rico Su- preme Court held that the ARPE violated San Geronimo's due process rights under the Puerto Rico Constitution "by deviating from the ordinary proce- dure and failing to hold a meaningful hearing before depriving San Geroni- mo of its permits." In a separate decision, that court also declared that San Geronimo had valid title to the land underlying the Project. San Geronimo later filed a procedural due process complaint under 42 U.S.C.A. S 1983 in federal district court. It sought damages of $38 million due to the.70-day delay in construction that the Secretary of the Puerto Rico Justice Department, the governor, and the administrator of ARPE (collective- ly, the "Defendants") allegedly caused. The district court dismissed San Geronimo's due process claims. It found they were barred by the Parratt-Hudson doctrine. That doctrine provides that: where "a deprivation of property interest is occasioned by random and unauthorized conduct by state officials," postdeprivation remedies can be sufficient to satisfy due process. The district court determined that was the case here. Moreover, the court also dismissed San Geronimo's claims under the doctrine of qualified immunity. That doctrine shields government of- ficials from personal liability for damages arising from actions taken while performing discretionary functions. San Geronimo appealed. DECISION: Affirmed as to the dismissal of San Geronimo' complaint. © 2011 Thomson Reuters 5