U.S. Supreme Court Holds Tribal Sovereign Immunity Expressly Abrogated by U.S. Bankruptcy Code
Bankruptcy attorneys Barbra Parlin and Lynne Xerras analyze the U.S. Supreme Court decision in the case of Lac du Flambeau Band of Lake Superior Chippewa Indians, et al v. Coughlin published in Pratt's Journal of Bankruptcy Law. The article focuses on the court's interpretation of whether or not Native American tribes in the U.S. are considered a "governmental unit" under the U.S. Bankruptcy Code and would therefore have sovereign immunity against being sued in bankruptcy court.
Ultimately, the court determined that Native American tribes did not qualify for sovereign immunity as a governmental unit, meaning their sovereign immunity was abrogated when Section 106(a) of the Bankruptcy Code was enacted. Check out the article for more detailed information about the court's reasoning and possible legal implications set forth by this decision.