Lac du Flambeau Band of Lake Superior Chippewa Indians v. Coughlin
In brief
The Bankruptcy Code strips federally recognized tribes of sovereign immunity in bankruptcy proceedings.
- Where it stands
- Decided
Decided 8-1 · June 15, 2023 · Opinion by Justice Jackson
- What it’s about
- Brian Coughlin filed for bankruptcy after taking a payday loan from a business owned by a Native American tribe, raising the issue of whether the tribe was protected from bankruptcy proceedings by sovereign immunity.
- Who it affects
- A person in bankruptcy who borrowed from a tribe-owned business, like Coughlin, can pursue Bankruptcy Code proceedings involving the tribe. Federally recognized tribes cannot use sovereign immunity to avoid those proceedings.
Summary: written with AI from the case record.
What it's about
The Supreme Court held that the Bankruptcy Code unequivocally abrogates the sovereign immunity of federally recognized Indian tribes.
The case resolved whether Congress used clear enough language to apply the Bankruptcy Code to federally recognized tribes.
Question presented
Whether the tribe was protected from bankruptcy proceedings by sovereign immunity?
What the Court decided
Holding
The Bankruptcy Code unambiguously abrogates the sovereign immunity of all governments, including federally recognized Indian tribes. 33 F. 4th 600, affirmed.
- Result
- Affirmed
The vote
- Joined the judgment
- Concurred in a separate opinion
- Dissented
- Wrote an opinion
- Majority · 7joined the Court's opinion
- Concurring · 1agreed with the result, wrote separately
- Dissenting · 1disagreed with the result
- Gorsuchwrote the dissent
From the opinions
“The Bankruptcy Code unambiguously abrogates the sovereign immunity of all governments, including federally recognized Indian tribes.”
“Respectfully, I do not think the language here does the trick.”
What's next
Lower courts must apply the decision in bankruptcy cases involving federally recognized tribes. Tribes and bankruptcy participants must follow Bankruptcy Code procedures in affected cases.
Documents
Docket activity
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AI analysis generated: Impact Analysis
AI analysis generated: Opinion Summary
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AI analysis generated: Case Briefing
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AI analysis generated: Decision Record
Opinion added: Coughlin
Opinion added: opinion
Brief added: Petition
Court Order added: Lower Court Orders/Opinions
Brief added: Questions Presented
More questions
- What did the Supreme Court rule in Lac du Flambeau Band v. Coughlin?
- The Court ruled that the Bankruptcy Code removes federally recognized tribes’ sovereign immunity in bankruptcy proceedings.
- What was the dispute in Lac du Flambeau Band v. Coughlin?
- The dispute was whether a tribe-owned business could use sovereign immunity to avoid bankruptcy proceedings connected to Coughlin’s payday loan.
- What does Lac du Flambeau Band v. Coughlin mean for federally recognized tribes?
- Federally recognized tribes may be subject to Bankruptcy Code proceedings rather than invoking sovereign immunity to block them.
- Is tribal sovereign immunity still the law after Lac du Flambeau Band v. Coughlin?
- The Court said the Bankruptcy Code abrogates tribal sovereign immunity in bankruptcy proceedings involving federally recognized tribes.
- What happens next in Lac du Flambeau Band v. Coughlin?
- Lower courts must apply the Court’s decision in relevant bankruptcy cases involving federally recognized tribes.
Sources
Primary materials plus reporting. Best-effort analysis: this explainer relies on a mix of primary materials and trusted secondary sources. Official filings and opinions remain authoritative.