Lac du Flambeau Band of Lake Superior Chippewa Indians v. Coughlin

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Lac du Flambeau Band of Lake Superior Chippewa Indians v. Coughlin
Seal of the United States Supreme Court.svg
Supreme Court of the United States
Argued April 24, 2023
Decided June 15, 2023
Full case nameLac du Flambeau Band of Lake Superior Chippewa Indians v. Coughlin
Docket no. 22-227
Citations599 U.S. 382 ( more )
Argument Oral argument
Holding
Native American Tribes are not immune from the automatic stay of the Bankruptcy Code
Court membership
Chief Justice
John Roberts
Associate Justices
Clarence Thomas  · Samuel Alito
Sonia Sotomayor  · Elena Kagan
Neil Gorsuch  · Brett Kavanaugh
Amy Coney Barrett  · Ketanji Brown Jackson
Case opinions
MajorityJackson, joined by Roberts, Alito, Sotomayor, Kagan, Kavanaugh, Barrett
ConcurrenceThomas (in judgment)
DissentGorsuch
Laws applied
U.S. Bankruptcy Code

Lac du Flambeau Band of Lake Superior Chippewa Indians v. Coughlin, 599 U.S. 382 (2023), was a United States Supreme Court case which determined that Native Americans Tribes are not immune from the automatic stay of the Bankruptcy Code.

Contents

Background

Brian Coughlin obtained a payday loan from Lendgreen, an online small high-interest loan provider indirectly owned by the Lac du Flambeau Band of Lake Superior Chippewa. Soon after, Coughlin filed a Chapter 13 bankruptcy case before the Bankruptcy Court. [1] Despite the automatic stay of collection efforts imposed by section 362 of the Bankruptcy Code, Lendgreen continued to request repayment of the loan provided. [2] [3] In response to this, Coughlin would move to file a motion before the Bankruptcy Court requesting an automatic stay while the Tribe opted to file a 'motion to dismiss' Coughlin's respective motion. [4] The Bankruptcy Court would go on to deny Coughlin's stay motion arguing that, given the Tribes were sovereign nations, they were subsequently immune from such a suit. [5] Coughlin would go on to appeal the decision to the First Circuit Court of Appeals who subsequently reversed the Bankruptcy Court's ruling siding in favor of Coughlin. [6] [7] Following this, the Tribe appealed the case to the Supreme Court who agreed to rehear the case. [8]

Supreme Court

Majority

On June 15, 2023, Justice Jackson issued the majority opinion for the court. [9] In her opinion, Jackson noted that abrogation of sovereign immunity by Congress is only applicable provided "unmistakably clear" language within the provided congressional statute. In doing so, Jackson commented that "sovereign immunity is abrogated as to a governmental unit" and that a tribe is considered to be covered under such a description as a "'governmental unit' exudes comprehensiveness from beginning to end". [10] [11] According to Jackson, section 362's phrasing of the automatic stay as it relates to 'other foreign or domestic government[s]' indicated a comprehensive inclusion of the varied "list of governments" and their respective subdivided components that Congress had established. [12] Given Tribes are considered to be governments, they subsequently fall underneath the Code's jurisdiction as the statute "unequivocally abrogates the sovereign immunity of all governments, categorically". A 'governmental unit', as understood by Jackson, could therefore not be read to exclude "certain governments … from those provisions’ reach, notwithstanding the fact that they engage in tax and regulatory activities". [13] In emphasizing that the terminology of 'other foreign or domestic government[s]' was truly categorical, Jackson noted that "[f]ew phrases in the English language express all-inclusiveness more than the pairing of two extremes" and that a deliberate inclusion of such in the statute indicated an "unmistakabl[e] intent to cover all governments". [14]

Concurrence

Justice Thomas issued a concurring opinion agreeing in judgment with the majority. In his opinion, Thomas expressed hesitancy towards the belief "that tribes possess sovereign immunity at all", arguing that if immunity did exist for the tribes, it would not extend outside of their territory nor on a level equal to those of the states. [15] Thomas further contended that the development of tribal sovereign immunity was a judicial construct that should be abandoned as it was brought about "almost by accident" and with "little analysis". [16] According to Thomas, sovereign immunity, to the extent a tribe had any, was "unjustified" as it developed through common law interpretation rather than Constitutional interpretation, and would further inflame the relationships between the Tribes and states. [17]

Dissent

Justice Gorsuch issued a dissenting opinion arguing that, given there was no explicit mention of the Tribes being covered by the code, the tribes were not under obligation to follow the code's regulations. [18] [19] In his dissent, Gorsuch contended that the code's phrasing of 'other foreign or domestic government[s]' was not applicable to the Tribes as, "properly understood, Tribes are neither of those things", with such an assumption only able to come through a generalized reading of the statute as "every government, everywhere". [20] Given this perceived lack of clear language, Gorsuch argued that "If Congress wishes to abrogate tribal immunity, its 'decision must be clear.' And the Legislature must 'unequivocally express' its decision in the text of a statute". [21]

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<span class="mw-page-title-main">Lac du Flambeau, Wisconsin</span> Town in Wisconsin, United States

The Town of Lac du Flambeau is located in Vilas County, Wisconsin, United States. The population was 3,004 at the 2000 census. The land base of the Lac du Flambeau Band of Lake Superior Chippewa is located within the town and also consists of a large portion of the town. The Lac du Flambeau census-designated place is located within the town. The unincorporated community of Marlands is also located in the town. Lac du Flambeau, situated around Flambeau Lake, is a year-round vacation destination.

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Seminole Tribe of Florida v. Florida, 517 U.S. 44 (1996), 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. Such abrogation is permitted where it is necessary to enforce the rights of citizens guaranteed under the Fourteenth Amendment as per Fitzpatrick v. Bitzer. The case also held that the doctrine of Ex parte Young, which allows state officials to be sued in their official capacity for prospective injunctive relief, was inapplicable under these circumstances, because any remedy was limited to the one that Congress had provided.

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The Lake Superior Chippewa are a large number of Ojibwe (Anishinaabe) bands living around Lake Superior; this territory is considered part of northern Michigan, Wisconsin, and Minnesota in the United States. They migrated into the area by the seventeenth century, encroaching on the Eastern Dakota people who had historically occupied the area. The Ojibwe defeated the Eastern Dakota, who migrated west into the Great Plains after the final battle in 1745. While they share a common culture including the Anishinaabe language, this highly decentralized group of Ojibwe includes at least twelve independent bands in the region.

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References

  1. ↑ Schweizer, Dan (January 30, 2023). "Supreme Court Report: Lac du Flambeau Band of Lake Superior Chippewa Indians v. Coughlin, 22-227". National Association of Attorneys General . Retrieved June 17, 2024.
  2. ↑ Mann, Ronald (April 20, 2023). "Justices to consider tribal immunity from bankruptcy process". SCOTUSblog . Retrieved June 17, 2024.
  3. ↑ Peterson, Josh; Marasco, Jaclyn (June 27, 2023). "Bankruptcy Implications of Lac du Flambeau Band of Lake Superior Chippewa Indians v. Coughlin". Faegre Drinker . Retrieved June 17, 2024.
  4. ↑ "Lac du Flambeau Band of Lake Superior Chippewa Indians v. Coughlin". Oyez . Retrieved June 17, 2024.
  5. ↑ Edwards, Brian (April 23, 2023). "SCOTUS hears arguments in bankruptcy case that has implications for doing business in Indian Country". Tribal Business News . Retrieved June 17, 2024.
  6. ↑ Wells, Steven; Huebner, Brock (June 15, 2023). "The Supreme Court Update - June 15, 2023". Dorsey & Whitney . Retrieved June 17, 2024.
  7. ↑ Nani, James (January 6, 2022). "Tribal Creditor Bound by Bankruptcy Stay, First Circuit Rules". Bloomberg Law . Retrieved July 11, 2024.
  8. ↑ Nani, James (January 13, 2023). "Tribal Sovereign Immunity in Bankruptcy Gets Supreme Court Hearing". Bloomberg Law . Retrieved July 11, 2024.
  9. ↑ Knauth, Dietrich (June 15, 2023). "U.S. Supreme Court says bankruptcy law overrides tribal sovereignty". Reuters . Retrieved June 17, 2024.
  10. ↑ Leiendecker, Hannah; Peterson, Josh; Paul, Brian (June 15, 2023). "Supreme Court Decides Lac du Flambeau Band of Lake Superior Chippewa Indians et al. v. Coughlin". Faegre Drinker . Retrieved June 17, 2024.
  11. ↑ Contino, Michael; Schwartz, Mainon (August 4, 2023). "Supreme Court Rules Bankruptcy Code Abrogates Tribal Sovereign Immunity". CRS . Retrieved June 17, 2024.
  12. ↑ Swanick, Christine (June 16, 2023). "Supreme Court Finds Bankruptcy Code Abrogates Tribal Sovereign Immunity". National Law Review . Retrieved July 11, 2024.
  13. ↑ "Lac du Flambeau Band of Lake Superior Chippewa Indians v. Coughlin, 599 U.S. ___ (2023)". Justia . Retrieved June 17, 2024.
  14. ↑ Mann, Ronald (June 15, 2023). "Justices reject tribal immunity from bankruptcy stay". SCOTUSblog . Retrieved June 17, 2024.
  15. ↑ "Lac du Flambeau Band of Lake Superior Chippewa Indians v. Coughlin, 599 U.S. ___ (2023)". Justia . Retrieved June 17, 2024.
  16. ↑ Raanan, Uzzi. "LAC DU FLAMBEAU BAND OF LAKE SUPERIOR CHIPPEWA INDIANS V. COUGHLIN, 143 S. CT. 1689 (2023)". California Lawyers Association . Retrieved June 17, 2024.
  17. ↑ Xerras, Lynne; Parlin, Barbra; Meggesto, James; DelFranco, Randolph (June 21, 2023). "U.S. Supreme Court Holds Tribal Sovereign Immunity Expressly Abrogated by U.S. Bankruptcy Code". Holland & Knight . Retrieved June 17, 2024.
  18. ↑ Nani, James; Park, Yun (June 16, 2023). "Tribe-Tied Lenders' Collection Outlook Dims After SCOTUS Ruling". Bloomberg Law . Retrieved July 11, 2024.
  19. ↑ Blackman, Josh (June 16, 2023). "SCOTUS Covers The Waterfront On The Lake Of Torches". Reason . Retrieved June 17, 2024.
  20. ↑ Mystal, Ellie (June 16, 2023). "Neil Gorsuch May Be the Supreme Court's Fiercest Defender of Native Rights". The Nation . Retrieved June 17, 2024.
  21. ↑ Denetclaw, Pauly (June 15, 2023). "Supreme Court: Tribal sovereign immunity doesn't extend to bankruptcy court". ICT . Retrieved June 17, 2024.
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