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

599 U.S. 382
CourtSupreme Court of the United States
DecidedJune 15, 2023
Docket22-227
StatusPublished
Cited by30 cases

This text of 599 U.S. 382 (Lac du Flambeau Band of Lake Superior Chippewa Indians v. Coughlin) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lac du Flambeau Band of Lake Superior Chippewa Indians v. Coughlin, 599 U.S. 382 (2023).

Opinion

PRELIMINARY PRINT

Volume 599 U. S. Part 1 Pages 382–418

OFFICIAL REPORTS OF

THE SUPREME COURT June 15, 2023

REBECCA A. WOMELDORF reporter of decisions

NOTICE: This preliminary print is subject to formal revision before the bound volume is published. Users are requested to notify the Reporter of Decisions, Supreme Court of the United States, Washington, D.C. 20543, pio@supremecourt.gov, of any typographical or other formal errors. 382 OCTOBER TERM, 2022

Syllabus

LAC du FLAMBEAU BAND OF LAKE SUPERIOR CHIPPEWA INDIANS et al. v. COUGHLIN certiorari to the united states court of appeals for the rst circuit No. 22–227. Argued April 24, 2023—Decided June 15, 2023 Petitioner Lac du Flambeau Band of Lake Superior Chippewa Indians (the Band) is a federally recognized Indian tribe. One of the Band's businesses, Lendgreen, extended respondent Brian Coughlin a payday loan. Shortly after receiving the loan, Coughlin fled for Chapter 13 bankruptcy, triggering an automatic stay under the Bankruptcy Code against further collection efforts by his creditors. But Lendgreen al- legedly continued attempting to collect Coughlin's debt. Coughlin fled a motion in Bankruptcy Court to enforce the automatic stay and recover damages. The Bankruptcy Court dismissed the suit on tribal sovereign immunity grounds. The First Circuit reversed, concluding that the Code “unequivocally strips tribes of their immunity.” 33 F. 4th 600, 603. Page Proof Held: The Bankruptcy CodePending Publication unambiguously abrogates the sovereign im- munity of all governments, including federally recognized Indian tribes. Pp. 386–399. (a) Two provisions of the Bankruptcy Code lie at the heart of this case. The frst, 11 U. S. C. § 106(a), expressly abrogates the sovereign immunity of “governmental unit[s]” for enumerated purposes. The sec- ond, § 101(27), defnes “governmental unit” as “United States; State; Commonwealth; District; Territory; municipality; foreign state; depart- ment, agency, or instrumentality of the United States . . . , a State, a Commonwealth, a District, a Territory, a municipality, or a foreign state; or other foreign or domestic government.” In order for these provi- sions to abrogate tribal sovereign immunity, Congress “must [have made] its intent . . . `unmistakably clear in the language of the statute.' ” Financial Oversight and Management Bd. for P. R. v. Centro De Peri- odismo Investigativo, Inc., 598 U. S. 339, 346. If the statute can plausi- bly be read to preserve sovereign immunity, Congress has not unambig- uously expressed the requisite intent. FAA v. Cooper, 566 U. S. 284, 290. But Congress need not use any particular words to pass this clear- statement test. Pp. 386–388. (b) The Bankruptcy Code unequivocally abrogates the sovereign im- munity of any and every government with the power to assert such immunity. Because federally recognized tribes unquestionably ft that Cite as: 599 U. S. 382 (2023) 383

description, the Code's abrogation provision plainly applies to them as well. Pp. 388–399. (1) Several features of the statute's text and structure point the way. To start, the defnition of “governmental unit” exudes comprehen- siveness. It begins with a long list of governments, varying in location, nature, and size. It then proceeds to capture subdivisions and compo- nents of every government in that list. And it concludes with a broad catchall phrase, sweeping in “other foreign or domestic government[s].” § 101(27). Moreover, the catchall phrase's pairing of extremes—i.e., “foreign or domestic”—appearing at the end of an extensive list unam- biguously indicates Congress's intent to cover all governments in § 101(27)'s defnition. The abrogation provision in § 106(a) in turn ap- plies to every “governmental unit” in § 101(27). It does not cherry-pick certain types of governments from that capacious list. Pp. 388–390. (2) Other provisions of the Bankruptcy Code reinforce § 106(a)'s and § 101(27)'s plain text. To facilitate an “orderly and centralized” debt- resolution process, 1 Collier on Bankruptcy ¶1.01 (16th ed. 2023), the Code includes a number of requirements, like the automatic stay provi- sion, that generally apply to all creditors. These basic requirements can be enforced against all kinds of creditors, whether the creditor is

a governmental unit or not. At the same time, the Code contains lim- ited exceptions to avoid impeding the functioning of governmental enti- ties when they act as creditors. See, e. g., § 362(b)(4). Reading the statute to carve out certain governments from the defnition of “gov- ernmental unit”—as petitioners would have the Court do—risks upending the policy choices that the Code embodies. And there is no indication that Congress meant to categorically exclude certain govern- ments from these provisions' enforcement mechanisms and exceptions. Pp. 390–392. (3) Federally recognized tribes are indisputably governments. They exercise uniquely governmental functions, and both Congress and this Court have repeatedly characterized them as governments. Ac- cordingly, because the Bankruptcy Code unequivocally abrogates the sovereign immunity of all governments, and tribes undoubtedly count as governments, the Code unmistakably abrogates tribal sovereign im- munity. Pp. 392–393. (c) Petitioners fail to sow doubt into these clear statutory provisions. Pp. 393–399. (1) Petitioners insist that neither § 101(27) nor § 106(a) mentions tribes by name. But Congress need not use any particular words to make its abrogation intent clear. Cooper, 566 U. S., at 291. And the fact that Congress has referenced tribes specifcally in other statutes 384 LAC du FLAMBEAU BAND OF LAKE SUPERIOR CHIPPEWA INDIANS v. COUGHLIN Syllabus

abrogating tribal sovereign immunity does not foreclose it from using different language to accomplish that same goal in other statutory con- texts. Pp. 393–395. (2) Petitioners also contend that the catchall phrase “other foreign or domestic government” can plausibly be read to include only entities that are purely foreign “or” purely domestic. In petitioners' view, the catchall phrase would thus exclude tribes or other governments that have foreign and domestic features. But Congress has expressly in- structed that the word “or,” as used in the Code, “is not exclusive.” § 102(5). In any event, petitioners do not explain why the Bankruptcy Code would draw such a line in the sand. Finally, petitioners suggest that Congress has historically treated various types of governments differently for purposes of bankruptcy law, relying on provisions preceding the Bankruptcy Code's enactment. Yet petitioners fail to demonstrate that the Code—which comprehen- sively revised bankruptcy practice—carried forward any such differen- tial treatment. Pp. 395–399. 33 F. 4th 600, affrmed.

Jackson, J., delivered the opinion of the Court, in which Roberts,

C. J., and Alito, Sotomayor, Kagan, Kavanaugh, and Barrett, JJ., joined. Thomas, J., fled an opinion concurring in the judgment, post, p. 399. Gorsuch, J., fled a dissenting opinion, post, p. 402.

Pratik A. Shah argued the cause for petitioners. With him on the briefs were Z. W. Julius Chen, Lide E. Paterno, Andrew Adams III, Patrick McAndrews, Zachary R. G. Fairlie, and Andrew W. Lester. Gregory G. Rapawy argued the cause for respondent. With him on the brief were Matthew N. Drecun, Terrie L. Harman, and Richard N. Gottlieb. Austin L. Raynor argued the cause for the United States as amicus curiae urging affrmance. With him on the brief were Solicitor General Prelogar, Principal Deputy Assist- ant Attorney General Boynton, Deputy Solicitor General Kneedler, Mark B. Stern, and Martin Totaro.*

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