Central Virginia Community College v. Katz
Encyclopedia
Central Virginia Community College v. Katz, 546 U.S. 356 (2006), is a United States Supreme Court case holding that the Bankruptcy Clause
of the Constitution abrogates
state sovereign immunity
. It is significant as the only case allowing Congress to use an Article I power to authorize individuals to sue states.
(1890), a line of controversial Supreme Court cases had applied the concept of sovereign immunity to suits brought by private individuals against state governments. See The Eleventh Amendment
. By the time Central Virginia Community College v. Katz came up for review, a majority of the justices on the Supreme Court had suggested Congress could never authorize individuals to sue a state pursuant to its Article I powers, including the Bankruptcy power. Seminole Tribe v. Florida
.
Bookstores did business with Central Virginia Community College
, an arm of the state. While it was insolvent, Wallace's Bookstores made certain preferential transfers of property to the state to satisfy debts. After Wallace's Bookstores filed for bankruptcy, Katz, the bankruptcy trustee, sued the state under to recover those transfers. The state raised sovereign immunity as a defense.
were in effect, states often did not recognize another state's discharge of a person's debt. This patchwork of bankruptcy laws made it difficult for people in debt to get out of debtor's prison. In light of this history, the Court interpreted Congress' power under the Bankruptcy Clause to make "uniform laws on the subject of bankruptcies" to include the power to abrogate state sovereign immunity.
The Court stated early bankruptcy legislation also supported its interpretation of the Bankruptcy Clause. It noted that in 1800, when concerns for state sovereign immunity ran fervent, Congress, with no recorded objection, gave federal courts power to release debtors from state prison through the writ of habeas corpus
.
In coming to its conclusion, the Court declined to follow dicta
in Seminole Tribe v. Florida
suggesting a contrary result.
, writing for three other justices, argued the historical record indicated states did not give up their sovereign immunity under the Bankruptcy Clause. The dissenters would have followed the view that nothing in Article I abrogates state sovereign immunity.
Bankruptcy in the United States
Bankruptcy in the United States is governed under the United States Constitution which authorizes Congress to enact "uniform Laws on the subject of Bankruptcies throughout the United States." Congress has exercised this authority several times since 1801, most recently by adopting the Bankruptcy...
of the Constitution abrogates
Abrogation doctrine
The Abrogation doctrine is a constitutional law doctrine expounding when and how the Congress may waive a state's sovereign immunity and subject it to lawsuits to which the state has not consented ....
state sovereign immunity
Sovereign immunity
Sovereign immunity, or crown immunity, is a legal doctrine by which the sovereign or state cannot commit a legal wrong and is immune from civil suit or criminal prosecution....
. It is significant as the only case allowing Congress to use an Article I power to authorize individuals to sue states.
Historical Context
In England, sovereign immunity referred to the concept that the king could not be sued without his consent. Beginning with Hans v. LouisianaHans v. Louisiana
Hans v. Louisiana, , was a decision of the United States Supreme Court determining that the Eleventh Amendment prohibits the citizen of a U.S. state to sue that state in a federal court.-Facts:The plaintiff, Hans, was a citizen of the state of Louisiana...
(1890), a line of controversial Supreme Court cases had applied the concept of sovereign immunity to suits brought by private individuals against state governments. See The Eleventh Amendment
Eleventh Amendment to the United States Constitution
The Eleventh Amendment to the United States Constitution, which was passed by the Congress on March 4, 1794, and was ratified on February 7, 1795, deals with each state's sovereign immunity. This amendment was adopted in order to overrule the U.S. Supreme Court's decision in Chisholm v...
. By the time Central Virginia Community College v. Katz came up for review, a majority of the justices on the Supreme Court had suggested Congress could never authorize individuals to sue a state pursuant to its Article I powers, including the Bankruptcy power. Seminole Tribe v. Florida
Seminole Tribe v. Florida
Seminole Tribe of Florida v. Florida, 517 U.S. 44 , was a United States Supreme Court case which held that Article One of the U.S. Constitution did not give the United States Congress the power to abrogate the sovereign immunity of the states that is further protected under the Eleventh Amendment...
.
Facts
Wallace'sWallace G. Wilkinson
Wallace Glenn Wilkinson was an American businessman and politician from the Commonwealth of Kentucky. From 1987 to 1991, he served as the state's fifty-seventh governor. Wilkinson dropped out of college at the University of Kentucky in 1962 to attend to a book retail business he started...
Bookstores did business with Central Virginia Community College
Central Virginia Community College
Central Virginia Community College, CVCC, is a two-year college located in Lynchburg, Virginia and is part of the Virginia Community College System...
, an arm of the state. While it was insolvent, Wallace's Bookstores made certain preferential transfers of property to the state to satisfy debts. After Wallace's Bookstores filed for bankruptcy, Katz, the bankruptcy trustee, sued the state under to recover those transfers. The state raised sovereign immunity as a defense.
Majority Opinion
In an opinion by Justice Stevens, the Court rejected the state's claim of sovereign immunity. The Court first noted that during the time the Articles of ConfederationArticles of Confederation
The Articles of Confederation, formally the Articles of Confederation and Perpetual Union, was an agreement among the 13 founding states that legally established the United States of America as a confederation of sovereign states and served as its first constitution...
were in effect, states often did not recognize another state's discharge of a person's debt. This patchwork of bankruptcy laws made it difficult for people in debt to get out of debtor's prison. In light of this history, the Court interpreted Congress' power under the Bankruptcy Clause to make "uniform laws on the subject of bankruptcies" to include the power to abrogate state sovereign immunity.
The Court stated early bankruptcy legislation also supported its interpretation of the Bankruptcy Clause. It noted that in 1800, when concerns for state sovereign immunity ran fervent, Congress, with no recorded objection, gave federal courts power to release debtors from state prison through the writ of habeas corpus
Habeas corpus
is a writ, or legal action, through which a prisoner can be released from unlawful detention. The remedy can be sought by the prisoner or by another person coming to his aid. Habeas corpus originated in the English legal system, but it is now available in many nations...
.
In coming to its conclusion, the Court declined to follow dicta
Obiter dictum
Obiter dictum is Latin for a statement "said in passing". An obiter dictum is a remark or observation made by a judge that, although included in the body of the court's opinion, does not form a necessary part of the court's decision...
in Seminole Tribe v. Florida
Seminole Tribe v. Florida
Seminole Tribe of Florida v. Florida, 517 U.S. 44 , was a United States Supreme Court case which held that Article One of the U.S. Constitution did not give the United States Congress the power to abrogate the sovereign immunity of the states that is further protected under the Eleventh Amendment...
suggesting a contrary result.
Dissent
Justice ThomasClarence Thomas
Clarence Thomas is an Associate Justice of the Supreme Court of the United States. Succeeding Thurgood Marshall, Thomas is the second African American to serve on the Court....
, writing for three other justices, argued the historical record indicated states did not give up their sovereign immunity under the Bankruptcy Clause. The dissenters would have followed the view that nothing in Article I abrogates state sovereign immunity.
See also
External links
- Central Virginia Community College v. Katz - full text of opinion