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No. 23-824October Term 2024Decided Mar 26, 2025

Docket 23-824October Term 2024 (2024–2025)

United States, Petitioner v. David L. Miller

The Supreme Court held that while the Bankruptcy Code waives the federal government's sovereign immunity for certain claims, this waiver does not extend to state-law fraudulent transfer claims that a trustee attempts to bring against the IRS, because a private creditor could not have sued the government under state law outside of bankruptcy.

Case status

Current stage
Decided
Latest event
Decision released Mar 26, 2025
Case AcceptedJun 24, 2024
Arguments HeardDec 2, 2024
Decision ReleasedMar 26, 2025
What it's about

The Supreme Court held that while the Bankruptcy Code waives the federal government's sovereign immunity for certain claims, this waiver does not extend to state-law fraudulent transfer claims that a trustee attempts to bring against the IRS, because a private creditor could not have sued the government under state law outside of bankruptcy.

Question presented

May a bankruptcy trustee avoid a debtor’s tax payment to the United States under 11 U.S.C. § 544(b) when no actual creditor could have obtained relief under the applicable state fraudulent-transfer law outside of bankruptcy?

Case path

United States Court of Appeals for the Tenth Circuit / Decision released Mar 26, 2025

Area

Business and Regulation