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7] THE EVOLUTION OF DEMOCRATJC GOVERNANCE 603

ºConstitution. "'1 5 In so concluding, the Court approvingly cited the First

Circuit's decisión in Cordova & Simonpietri Jnsurance Agency !ne. v. Chase
Bank N.A .106 The First Circuit established that the events between 1950 and
1952 define the relationship between Puerto Rico and the United States.l'"
Since then, the relationship has not only been constrained by the power of
Congress under the Territorial Clause, but also by the United States
Constitution, the Puerto Rican constitution, Law 600, and the rights of Puerto
Ricans as U.S. citizens.l'"

Absent an express determination by Congress, the U.S. Supreme Court's
analyses of the events between 1950 and 1952 contained in Calero-Toledo,
Flores de Otero, and Cordova & Simonpietri Insurance Agency !ne., are
determinant of Congress's intent to apply a federal statute to Puerto Rico as
though it were a state. The U.S. Supreme Court has determined that these
events vest Puerto Rico with the same type of sovereignty enjoyed by the state
of the Union. These cases provided the bedrock for Sanchez Valle and
supplied Congress with creative judicial platforms within the Territorial Clause
on which to structure democratic relationships with citizens of the United
States residing in nonstate areas. Respect for the integrity of these judicial
platforms ensures that these relationships--conceived in liberty and by the
consent of the govemed-protect the rights of Puerto Ricans as American
citizens.

The principies set out on territorial govemance by the U.S. Supreme Court

in Sanchez Valle refute the Solicitor General 's argument that the Territorial

Clause can only be used by Congress to create territories.I'? Congressional
power under the Territorial Clause is not confined to the autocratic creation of
nineteenth-century-type territories. Rather, it is open to the creative
statesmanship ~nvisioned by Frankfurter, which gave birth to the
Commonwealth of Puerto Rico, and is needed once again to adapt to the
twenty-first century.

As noted, after Sanchez Valle, the First Circuit followed the Court's analysis

105. See id. ar 8 (citing Calero-Toledo v. Pearson Yacht Leasing Co., 416 U.S. 663, 673 (1974)}.
106. 649 F.2d 36 ( 1 st Cir. 1981 ); see also Rodríguez, 451 U.S. at 8 (referring to First Circuir precedent).
107. See Cordova & Simonpietri Ins. Agency, Inc., 649 F.2d at 40-41 (recounting Puerto Rico·s
constitutional adoption process).
108. See id. al 41 (discussing boundaries of Puerto Rico's relationship with federal governmem), The
Court stated:

[T]be federal govemment's relations with Puerto Rico changed from being bounded rnerely by the
territorial clause, and the rights of the people of Puerto Rico as United States cirizens, to being
boundcd by the United States and Puerto Rico Constirutions, Public Law 600, the Puerto Rican
Federal Relations Act and the rights of the people of Puerto Rico as United States citizens.

Id.
109. See Puerto Rico v. Sanchez Valle, 136 S. Ct. 1863, 1876 (2016) (referring to Congress's "bread

latirude" in siructuring "territorial govemance").
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