Supreme Court of the United States
Hoffman v. Connecticut Department of Income Maintenance
June 23, 1989492 U.S. 96
Summary
The Court held that the Bankruptcy Code’s § 106(c) does not unmistakably abrogate the States’ Eleventh Amendment immunity from monetary recovery in bankruptcy proceedings. Because the States had not filed proofs of claim, the trustee could not use the turnover and preference provisions to obtain money judgments against them, and the Court therefore affirmed. Justice O’Connor concurred in the judgment, while Justices Marshall, Brennan, Blackmun, and Stevens dissented on the statutory interpretation and congressional-authority issues.
Holding
- Whether § 106(c) authorizes monetary recovery from a State that has not filed a proof of claim in a bankruptcy proceeding.. Section 106(c) does not unmistakably abrogate the States’ Eleventh Amendment immunity from monetary recovery. Accordingly, the trustee’s actions under the turnover and preference provisions were barred.
Docket 88-412