Cancio Covas & Santiago LLP

Corporate, Municipal Finance, Corporate Finance, Securities, Litigation, Real Estate, Administrative Law, Banking Law and Health Law.

Proprietary Partner

Born in San Juan, Puerto Rico, September 28, 1958; admitted to Bar, 1983, Puerto Rico. His practice is focused in the areas of corporate and business law, municipal finance, corporate finance, banking, litigation, real estate, securities, workouts, and mergers and acquisitions. He became initiated in securities work in 1984 in a US Treasury indexed preferred stock offering for Banco de Ponce, then one of the leading banks in Puerto Rico. Since then, Mr. Cancio has participated in numerous offerings of municipal and corporate securities, including swaps, hedges, and derivative products. During this time, in addition to being involved in the purely transactional and regulatory aspects of the transactions in which he participated in, he has also been involved in the determination of the taxation of such financial products. His finance practice involves the representation of borrowers, financial institutions, and private lenders in a diversity of financing transactions, including acquisition, asset based and real estate financings, restructurings, workouts, and purchases and sales of distressed credits. Mr. Cancio has participated in numerous offerings of municipal and corporate securities, including swaps, hedges, and derivative products. During this time, in addition to being involved in the purely transactional and regulatory aspects of the transactions in which he participated, he has also been involved in the determination of the taxation of such financial products. His experience in the taxation of financial products and transactions extends from Puerto Rico taxation to Section 501(c)(3) and Section 103 exempt financings under the Internal Revenue Code of 1986, as amended (the “Code”). Mr. Cancio was designated by the Government Development Bank for Puerto Rico as part of the selective group of professionals entrusted with facilitating the successful return of the Puerto Rico Aqueduct and Sewer Authority to the revenue bond market, after a 20-year hiatus. Through his involvement in the financing and securities offerings, for Section 501(c)(3) tax-exempt hospitals and similar facilities in Puerto Rico, Mr. Cancio has also developed significant experience in the regulatory aspects of healthcare law. His expertise in this particular field was recognized by the Commonwealth of Puerto Rico, during its initial efforts in the privatization of various public healthcare facilities in the 1990s.

Among his most recent work in the field of municipal finance Mr. Cancio has led CCS’ representation as local counsel for the GDB Debt Recovery Authority in the issuance of the $2.6 billion of GDB Debt Recovery Authority Bonds (Taxable) in November 2018, the first Qualifying Modification under Title VI of the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA) (certified by the Financial Oversight and Management Board, under Section 601(g)(2)(A) of PROMESA, and approved by the United States District Court for the District of Puerto Rico on November 7, 2018) and our representation of the Puerto Rico Aqueduct and Sewer Authority in the issuance of $1,300,000,000 of its Senior Revenue Bonds and the refunding of $284,755,000 of its Commonwealth Guaranteed Revenue Bonds in 2008 and $2,095,695,000 of its Senior Lien Bonds under an amended and restated Master Agreement of Trust in 2012.

As head of CCS’ Public Finance practice Group Mr. Cancio led the Firm’s representation of Puerto Rico Aqueduct and Sewer Authority in the structuring, negotiating, drafting and execution of the definitive documents in the constitution of the Trust Funds for the Clean Water State Revolving Fund and the Safe Drinking Water State Revolving Fund (collectively, the “SRFs”). The establishment of the Trust Funds permitted the Government of Puerto Rico to recover about $195 million in federal funding (under the Clean Water Act and the Safe Drinking Water Act) that had been frozen at the Government Development Bank for Puerto Rico.

Additionally, Mr. Cancio has been involved in commercial litigation in the local court system and before the United States Court of Appeals for the First Circuit in numerous high-stake cases involving multi-million dollar claims, including “bet the company” litigation. Specifically, Mr. Cancio has appeared on three (3) separate occasions before the United States Court of Appeals for the First Circuit and was successful in upholding the constitutionality of Act No. 109 approved by the Puerto Rico Legislature, on July 12, 1985, as amended, under the Dormant Foreign Commerce Clause, a case of first impression in the United States.  Mr. Cancio also led the Firm’s efforts to successfully enjoin in local court the payment of a multi-million dollar stand-by letter of credit. Most recently, after a trial that lasted three weeks, Mr. Cancio was able to achieve a judgement in favor of his client, a shopping center owner, of approximately $2,300,000.00 in contract damages against a supermarket chain owner who abandoned the premises after a fire. Before trial, counsel to the supermarket chain offered Mr. Cancio $17,000.00 to settle the matter. Mr. Cancio has further filed a motion, presently pending before the Court, which, if granted, would raise the amount of damages to approximately $2,800,000. Pending final adjudication, Mr. Cancio requested and was granted an order to attach funds of the supermarket chain. As a result, the full amount of the judgement is presently deposited with the Court.

American Express v. Municipio de San Juan, 120 D.P.R. 339 (1988) Citibank and Grupo Catalán de Inversiones, S.A. v. Grupo Cupey, Inc. and American International Insurance Company of Puerto Rico, 382 F. 3d 29 (1st Cir. 2004) Antilles Cement Corporation v. Anibal Acevedo Vilá, Governor of the Commonwealth of Puerto Rico et al, Puerto Rican Cement Co., Inc., Intervenor 408 F.3d 41 (1st Cir. 2005) Antilles Cement Corporation v. Luis G. Fortuño Burset, Governor of the Commonwealth of Puerto Rico, et al, Cemex De Puerto Rico, Inc., f/k/a Puerto Rican Cement Co., Inc., Intervenor 670 F.3d 310 (1st Cir. 2012), whereby the First Circuit reversed the District Court’s Judgment and upheld the constitutionality of Act No. 109 approved by the Puerto Rico Legislature, on July 12, 1985, as amended, under the market participant exception of the Dormant Foreign Commerce Clause, marking the first time said exception has ever been applied in the United States under said clause. Diquevestment Group Inc. v. Supermercados Econo Rial, Inc., 2018 PR App. LEXIS 2192. The P.R. Court of Appeals confirmed all but one of the economic remedies that were granted in favor of the Firm’s client by the Court of First Instance after a three week long trial. Asociación Santa Teresita – Park Boulevard Número 334, Inc. v. Municipio Autónomo de San Juan, Mr. Cancio obtained an order from the P.R. Court of First Instance against the Municipality of San Juan, for it to finish the process related to the closing and establishment of a controlled access in the Santa Teresita and Park Boulevard neighborhoods in Ocean Park. Buena Vibra Grp., Inc. v. Fontánez Ramírez, 2021 PR App. LEXIS 3168 (KLAN202100718, November 8, 2021), the Puerto Rico Court of Appeals confirmed summary judgment entered by the Court of First Instance partially dismissing counterclaims against Plaintiff, and entered further judgment on its behalf, declaring, among other things that the defendant had been redeemed and is no longer a shareholder of the companies. Noel Santos Montes v. Hospital Doctor Susoni, Incorporado, 2021 PR App. LEXIS 3203 (KLAN202100738, November 4, 2021), the Puerto Rico Court of Appeals confirmed a Judgment entered by the PR Court of First Instance, dismissing with prejudice a derivative action related to a short-form merger brought by two former stockholders of the Firm’s client. Hospital Español Auxilio Mutuo de Puerto Rico, Inc. v. San Juan Psychological Recovery and Rehabilitation, LLC, Not yet Published (KLRA202100603, KLRA202100615, December 10, 2021), the Puerto Rico Court of Appeals declared a land use consultation and a construction permit null and void due to the Puerto Rico Permit Management Office acting without jurisdiction to issue it Hospital Español Auxilio Mutuo de Puerto Rico, Inc. v. San Juan Psychological Recovery and Rehabilitation, LLC, 2021 PR App. LEXIS 2749 (KLRA202100535, October 25, 2021), the Puerto Rico Court of Appeals declared a land use consultation null and void due to the Puerto Rico Permit Management Office acting without jurisdiction to issue it.

Hospital Español Auxilio Mutuo de Puerto Rico, Inc. v. San Juan Psychological Recovery & Rehab., LLC, 2021 PR App. LEXIS 1992 (KLRA202100130, KLRA202100131, July 19, 2021), the Puerto Rico Court of Appeals declare a land use consultation null and void in light of a finding, as requested by the Firm, that the Rules and Regulations under which they were considered and adjudicated, were declared null and void.

Spanish and English

American Bar Association

National Association of Bond Lawyers.

Franklin and Marshall College (B.A., 1980)

University of Puerto Rico (J.D., 1983)