AB Fishing Tackle

Main Menu

  • Home
  • Fishing Tackle
  • Fishing Rods
  • Fishing Gear
  • Fishing Equipment
  • Fishing Store

AB Fishing Tackle

Header Banner

AB Fishing Tackle

  • Home
  • Fishing Tackle
  • Fishing Rods
  • Fishing Gear
  • Fishing Equipment
  • Fishing Store
Fishing Store
Home›Fishing Store›Automatic stay of bankruptcy: tribal sovereign immunity repealed | Dorsey & Whitney LLP

Automatic stay of bankruptcy: tribal sovereign immunity repealed | Dorsey & Whitney LLP

By Sharon D. Horowitz
June 17, 2022
0
0

First Circuit – Coughlin v. Lac Du Flambeau Band of Chippewa Indians of Lake Superior

The question was whether tribal sovereign immunity protected the tribal lender from automatic suspension. On May 6, 2022, the First Circuit ruled that Tribal Sovereign Immunity was repealed by Section 106 of the Bankruptcy Code. Coughlin v. Lac Du Flambeau Band of Chippewa Indians of Lake Superior33 F.4th 600 (1st Cir. 2022) [hereinafter Coughlin].

Congress can repeal Tribal Sovereign Immunity so long as it is “expressed unequivocally[ed]”. The question was whether Section 106 of the Bankruptcy Code “expressed unequivocally” the intention to abrogate sovereign tribal immunity. Section 106 expressly repeals the sovereign immunity of governmental units, with respect to various provisions of the Bankruptcy Code, including the automatic stay. The sub-question for the Court was whether the tribes fell within the definition of governmental unit in the Bankruptcy Code.

The First Circuit agreed with the Ninth Circuit in deciding that the term unit government covers essentially all forms of government, including tribes. Although tribes are not specifically listed in Section 101(27) of the Bankruptcy Code, the First Circuit held that tribes fell within the catch-all of “other foreign or domestic governments” in that section. Thus, the tribal lender was not immune to the Bankruptcy Code’s automatic stay against collections and was liable for damages due to breach thereof.

The dissent in Coughlin, like the Sixth Circuit previously, argues for a higher standard of clarity in determining whether Congress intended to repeal sovereign immunity in statute. The dissent argues that national governments are only those who can trace their origins to the US Constitution, which tribes cannot. In other words, it is not enough to conclude that “national government” could be interpreted as including Indian tribes; Congress must directly name Indian tribes or at least make very clear its intention to repeal tribal sovereign immunity. After Coughlin there is no doubt that the tribes are subject to the automatic stay which prohibits any collection activity once the debtors have filed for bankruptcy.

The First Circuit’s decision in Coughlin supplements other rulings that tribes fall within the Bankruptcy Code’s definition of a governmental unit. Therefore, application of the definition in Section 109 of the Bankruptcy Code means that tribes are not eligible for bankruptcy relief. See, Steven T. Waterman, Tribal Disorders – Without Bankruptcy Recovery, 24h. INST. BANKRUPTCY J. 44 (2010).

The Court’s decision is available here. We plan to complete this electronic update in case a petition for certiorari in the U.S. Supreme Court is granted, which is possible given the circuit’s split on the issue.

Related posts:

  1. The (third) party is finished? Recent Rulings Cast Doubt on Continued Vitality of Third-Party Versions in Chapter 11 Reorganizations | Proskauer – mind your own business
  2. InfoWars, facing mounting legal pressure, files for bankruptcy: NPR
  3. Sungard Files for Second Chapter 11 Bankruptcy
  4. California couple face bankruptcy after being charged $97,000 for air ambulance ride | Share b.
Recent Posts
  • Bass Pro Shops Tampa donates 800 rods to program
  • Cerealto Siro Foods avoided bankruptcy thanks to government intervention and new owners
  • Sport Fly Fishing Tackle Market Size, Scope and Forecast
  • Kayaks, fishing rods, coolers: Dick’s Sporting Goods 4th of July Sale
  • Fourth Circuit rules are no panacea for dishonest debtors
Categories
  • Fishing Equipment
  • Fishing Gear
  • Fishing Rods
  • Fishing Store
  • Fishing Tackle
Archives
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • September 2017
  • July 2017
  • June 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • November 2016
  • October 2016
  • July 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • November 2015
  • May 2015
  • April 2015
  • February 2015
  • January 2015
  • February 2014
  • January 2014
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • November 2012
  • June 2012
  • May 2012
  • May 2011
  • March 2011
  • November 2009
  • July 2007
  • October 2006
  • May 2006
  • Privacy Policy
  • Terms and Conditions