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1 1 (August 4, 2023)

handle is hein.crs/govemkm0001 and id is 1 raw text is: Congressional_______ SaResearch Service Supreme Court Rules Bankruptcy Code Abrogates Tribal Sovereign Immunity August 4, 2023 On June 15, 2023, the Supreme Court decided Lac du Flambeau Band ofLake Superior Chippewa Indians v. Coughlin (Lac du Flambeau). The case involved a dispute over lifting an automatic stay in a Chapter 13 bankruptcy proceeding, but more broadly presented a conflict between the Bankruptcy Code and tribal sovereign immunity. Ultimately, the Court held that the Bankruptcy Code (the Code) unambiguously abrogates the sovereign immunity of all governments, including that of federally recognized Indian tribes. This Sidebar provides an overview of tribal sovereign immunity and introduces @ 106 of the Code, which contains the sovereign immunity provision at issue in Lac du Flambeau. It then discusses the factual and procedural history of Lac du Flambeau, and summarizes the Supreme Court's opinion. This Sidebar then examines the ramifications of the decision for both bankruptcy law and federal Indian law, including considerations for Congress. Tribal Sovereign Immunity and Bankruptcy Code Section 106 Federally recognized tribes maintain inherent sovereign authority, which generally includes a common- law immunity from lawsuits. This tribal sovereign immunity applies equally to lawsuits brought by states and lawsuits brought by individuals. Tribal sovereign immunity may be overcome in two ways, each allowing suits to be brought against tribes. Either the tribe itself may waive sovereign immunity in certain cases, or Congress may abrogate, or eliminate, tribal sovereign immunity in certain contexts using its plenary constitutional authority to legislate with respect to Indian tribes. In Lac du Flambeau, the Court considered this latter path: whether Congress had abrogated tribal sovereign immunity in particular circumstances-namely, those governed by certain provisions of the Bankruptcy Code. Although Congress has the power to legislate with regard to tribal sovereign immunity and other tribal rights, courts have developed canons of construction when evaluating whether Congress has done so. One of these canons generally requires that if Congress wishes to diminish tribal rights or authority, it must do so unequivocally. The Supreme Court has explained that courts must tread lightly and not presume a congressional intent to undermine tribal authority absent a clear indication of such intent. The Court has Congressional Research Service https://crsreports.congress.gov LSB11017 CRS Legal Sidebar Prepared for Members and Committees of Congress

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