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LUMA Energy v. Puerto Rico Electric Power Authority — 1st Cir. (Oct 6, 2026)

No. 26-1081 Argued October 6, 2026 Published October 8, 2026

The First Circuit hears LUMA Energy versus Puerto Rico Electric Power Authority. LUMA operates Puerto Rico's electricity transmission and distribution network under a contract with the utility and the Public-Private Partnerships Authority. The authority raised six disputes over the performance of LUMA. The contract sends technical disputes to an independent expert; other disputes go through mediation and potentially litigation. LUMA rejected the authority's technical classification and sued in the federal debt-restructuring case of PREPA to require mediation first. Judge Laura Taylor Swain found that she had jurisdiction, but declined to hear the case, leaving litigation to Puerto Rico's Commonwealth court. LUMA appeals that decision. The argument concerns abstention: choosing not to exercise jurisdiction, rather than lacking the power to hear a case. PROMESA is the federal law governing this debt-restructuring process. Comity means respect for other courts' authority. David Horniak, of DLA Piper, will ask for federal adjudication. The partnerships authority will defend the judge's discretion to leave a local contract dispute to the Commonwealth court.

LUMA Energy v. Puerto Rico Electric Power Authority (No. 26-1081) — U.S. Court of Appeals for the First Circuit, argued October 6, 2026.

Sources
Argument audio — First Circuit:https://www.ca1.uscourts.gov/sites/ca1/files/oralargs/26-1081_20261006.mp3
Argument date and case listing — First Circuit:https://www.ca1.uscourts.gov/doar/results/2026-10
Contract dispute and P3A position — filed opposition, Doc. 33:https://document.epiq11.com/document/getdocumentbycode?docId=4513230&projectCode=PR1&source=DM
Background and abstention decision — Judge Swain, Doc. 65:https://cdn.noticel.com/2025/12/19195210/Decision-Swain-sobre-demanda-de-LUMA-por-disputas-de-la-AAPP-19-diciembre-2025.pdf
Appeal and LUMA counsel — filed notice, Doc. 67 (main filing):https://document.epiq11.com/document/getdocumentsbydocket/?docketId=1203172&docketNumber=67&projectCode=PR1&source=DM
Independent contract background — Oversight Board statement:https://oversightboard.pr.gov/fomb-statement-p3a-vs-luma/
PROMESA abstention provision — 48 U.S.C. § 2169:https://www.law.cornell.edu/uscode/text/48/2169
Comity in bankruptcy abstention — 28 U.S.C. § 1334(c)(1):https://www.law.cornell.edu/uscode/text/28/1334
Abstention and comity — Quackenbush, Supreme Court majority:https://www.law.cornell.edu/supct/html/95-244.ZO.html

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