Third Circuit: Assertions of Sovereign Immunity Can Be Scrutinized In the Bankruptcy Context

In an era of increasing participation and regulation by various governmental agencies in businesses eligible for bankruptcy relief, the Third Circuit's decision in Venoco is an important development for assessing the extent to which a distressed business can address action by a governmental unit through a bankruptcy case.

8 minute read July 01, 2021 at 12:03 AM
By
Corinne Ball
Third Circuit: Assertions of Sovereign Immunity Can Be Scrutinized In the Bankruptcy Context

The Eleventh Amendment preserves the rights of states to assert immunity from suits in federal courts. However, the sovereign immunity states enjoy is not absolute.

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