News & Analysis as of

Sovereign Immunity Bankruptcy Court

Greenberg Glusker LLP

Sovereign Immunity and Younger Abstention Doctrine Don’t Protect States from Antidiscrimination Provisions

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The Ninth Circuit Bankruptcy Appellate Panel (“BAP”) has held for the first time that neither sovereign immunity nor the Younger abstention doctrine constrain bankruptcy courts from enjoining State governmental disciplinary...more

Gray Reed

Bankruptcy Court Blocks GLO’s State Lease Termination

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In In re Pearl Resources LLC, a Houston bankruptcy court rejected the Texas General Land Office’s attempt to partially terminate state oil and gas leases in Pecos County, despite finding the operator had breached offset well...more

Ballard Spahr LLP

Supreme Court: No Strong-Arming the Federal Government With State-Law Fraudulent Transfer Claims

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Recently, in the case United States v. Miller, the U.S. Supreme Court held that the sovereign immunity waiver provision in the Bankruptcy Code is jurisdictional only and does not waive the federal government’s sovereign...more

Jones Day

Circuit Split Widens on Extent of Abrogation of Sovereign Immunity for Governmental Units in Bankruptcy Avoidance Litigation

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Bankruptcy trustees and chapter 11 debtors-in-possession ("DIPs") frequently seek to avoid fraudulent transfers and obligations under section 544(b) of the Bankruptcy Code and state fraudulent transfer or other applicable...more

Patterson Belknap Webb & Tyler LLP

Tenth Circuit Holds that Sovereign Immunity Does Not Limit Section 544 Claim

Section 544(b)(1) of the Bankruptcy Code enables a trustee to step into the shoes of a creditor and avoid a transfer “of an interest of the debtor in property” that an unsecured creditor could avoid under applicable state...more

Jones Day

U.S. Supreme Court Bankruptcy Roundup - July 2023

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Since May 2023, the U.S. Supreme Court has issued three decisions addressing or potentially impacting issues of bankruptcy law. These included rulings concerning the abrogation of sovereign immunity for Native American tribes...more

Quarles & Brady LLP

SCOTUS Holds Bankruptcy Code Waives Tribal Sovereign Immunity: Implications for Tribes as Creditors: Lac du Flambeau Band of Lake...

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The courts have long been split on the question of whether Native American tribes are immune from legal attacks under federal bankruptcy law. Some courts have held that tribes and tribal-owned entities could not be sued for...more

Mintz - Bankruptcy & Restructuring Viewpoints

SCOTUS Bankruptcy Decision Roundup

On average, the Supreme Court hears a single bankruptcy case each term. But during the October 2022 term, the Supreme Court issued a remarkable four decisions in bankruptcy cases. These decisions, which are summarized below,...more

Faegre Drinker Biddle & Reath LLP

Bankruptcy Implications of Lac du Flambeau Band of Lake Superior Chippewa Indians v. Coughlin

On June 15, 2023, the U.S. Supreme Court decided Lac du Flambeau Band of Lake Superior Chippewa Indians, et al. v. Coughlin. The case involved a tribal entity, “Lendgreen,” that lent an individual, Brian Coughlin, “$1,100 in...more

Miller Nash LLP

The Supreme Court Abrogates Tribal Immunity in Bankruptcy Proceedings

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On June 15, 2023, Justice Jackson led the majority in an 8-1 decision holding that the Bankruptcy Code abrogates federally recognized tribes’ sovereign immunity. The decision has significant implications for tribal creditors...more

Troutman Pepper Locke

Supreme Court Holds Bankruptcy Code Abrogates Tribal Immunity

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In January, the U.S. Supreme Court agreed to hear Lac du Flambeau Band of Lake Superior Chippewa Indians v. Coughlin after the First Circuit barred the Lac du Flambeau Band from seeking to collect on a $1,600 debt obligation...more

Faegre Drinker Biddle & Reath LLP

Supreme Court Decides Lac du Flambeau Band of Lake Superior Chippewa Indians et al. v. Coughlin

On June 15, 2023, the U.S. Supreme Court decided Lac du Flambeau Band of Lake Superior Chippewa Indians et al. v. Coughlin, No. 22-227, holding that the Bankruptcy Code unambiguously abrogates the sovereign immunity of all...more

Sheppard Mullin Richter & Hampton LLP

Supreme Court Finds Bankruptcy Code Abrogates Tribal Sovereign Immunity

The U.S. Supreme Court ruled on Thursday that because Indian tribes are indisputably governments, the Bankruptcy Code unmistakably abrogates their sovereign immunity to bankruptcy court proceedings....more

Jones Day

Kumtor Gold Challenges the Practical Application of the Automatic Stay's Global Reach

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Although the automatic stay contained in section 362 of the Bankruptcy Code theoretically extends worldwide, enforcing it against international creditors, particularly sovereigns, can present practical problems in its...more

Patterson Belknap Webb & Tyler LLP

Blurred Immunity: California Cannot Escape Adversary Proceeding on Grounds of Sovereign Immunity

In 2018, the liquidating trustee for Venoco, LLC and its affiliated debtors (collectively, the “Debtors”) commenced an action in the United States Bankruptcy Court for the District of Delaware seeking monetary damages from...more

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