Lac du Flambeau Band of Lake Superior Chippewa Indians v. Coughlin
Issues
Does the Bankruptcy Code abrogate tribal sovereign immunity and thus subject Indigenous tribes to the Bankruptcy Code’s automatic stays enjoining debt collection, or do Indigenous tribes retain sovereign immunity against the Bankruptcy Code’s automatic stays?
Note: The authors mirror the parties’ and courts’ use of the terms “Indian” and “Indian tribe” as legal terms in this Preview.
This case asks the Supreme Court to decide whether the Bankruptcy Code unequivocally expresses congressional intent to abrogate the sovereign immunity of Indigenous tribes. The Lac du Flambeau Band of Lake Superior Chippewa Indians argues that the Bankruptcy Code’s language is unclear, ambiguous, and subject to reasonable alternative interpretations, which fails to meet the high bar of an unequivocal expression of Congress’s intent. Brian W. Coughlin counters that there is no requirement for an explicit reference to Indigenous tribes, and that the ordinary meaning of the word “governmental unit” clearly shows Congress’s intent to abrogate the sovereign immunity of Indigenous tribes. This case touches on essential questions regarding tribal self-governance and abuse of the system of sovereign immunity.
Questions as Framed for the Court by the Parties
Whether the Bankruptcy Code unequivocally expresses Congress’ intent to abrogate the sovereign immunity of Indigenous tribes.
Congress has authorized bankruptcy courts under 11 U.S.C. § 362(a) of the Bankruptcy Code (the “Code”) to enforce an automatic stay on debt collection efforts by creditors after the debtor has filed for bankruptcy.
Additional Resources
- Jacklyn Branby & Heidi McNeil Staudenmaier, Supreme Court Grants Certiorari to Determine Whether the Bankruptcy Code Waives Sovereign Immunity of Native American Tribes, JDSupra (Jan. 23, 2023).
- James Nani, Tribal Sovereign Immunity in Bankruptcy Gets Supreme Court Hearing, Bloomberg Law (Jan. 13, 2023).
- Caleb Symons, Tribes Owed Immunity In Bankruptcy Cases, High Court Told, LAW360 (Feb. 23, 2023).