Supreme Court Limits Trustee Avoidance Powers in U.S. v. Miller - Section 106(a) Doesn’t Waive Sovereign Immunity for State-Law-Based Section 544(b) Claims

Section 106(a) Doesn’t Waive Sovereign Immunity for State-Law-Based Section 544(b) Claims - The U.S. Supreme Court has significantly curtailed bankruptcy trustees’ powers in United States v. Miller, 145 S. Ct. 839 (2025). In an 8–1 decision, the Court held that the federal government’s sovereign immunity is not waived under Section 106(a) for state-law-based avoidance actions brought under Section 544(b) of the Bankruptcy Code....
By: Nelson Mullins Riley & Scarborough LLP

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