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Vaqueria Tres Monjitas, Inc. v. Irizarry

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Before Torruella, Lipez, and Howard, Circuit Judges.

This is an appeal from a preliminary injunction issued by the United States District Court for the District of Puerto Rico against the Milk Industry Regulation Administration for the Commonwealth of Puerto Rico (“ORIL” by its Spanish acronym), a sub-entity of the Department of Agriculture charged with regulating Puerto Rico’s milk industry, and the Commissioners thereof. Plaintiffs, fresh milk processors in the Commonwealth, filed suit in federal court under 42 U.S.C. § 1983 and the Federal Declaratory Judgment Act, 28 U.S.C. § 2201, alleging that ORIL’s regulatory scheme governing milk prices violates the Due Process, Equal Protection, Takings, and dormant Commerce Clauses, and seeking an order pursuant to Fed. R. Civ. P. 65(a) enjoining the Administrator of ORIL from continuing to implement the challenged regulatory provisions. Finding a likelihood of success on the merits of plaintiffs’ constitutional claims, the district court preliminarily enjoined the regulatory scheme.

On appeal, in addition to challenging the merits of the district court’s preliminary injunction ruling, Defendants-Appellants argue that the district court’s actions were barred by the Burford Abstention doctrine, the Eleventh Amendment, and by various equitable defenses.

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