Document: 541 U.S. 440 TENNESSEE STUDENT ASSISTANCE CORPORATIONv.HOOD. No. 02-1606. Supreme Court of United States. Argued March 1, 2004. Decided May 17, Respondent Hood had an outstanding balance on student loans guaranteed by petitioner Tennessee Student Assistance Corporation (TSAC), a state entity, at the time she filed Chapter 7 bankruptcy petition. Hood's general discharge did not cover her loans, as list them and they are only dischargeable if court determines that excepting debt from order would be "undue hardship" debtor, 11 U. S. C. § 523(a)(8). subsequently reopened petition, seeking determination. As prescribed Federal Rules Bankruptcy Procedure 7001(6), 7003, 7004, complaint and, later, amended complaint, served with summons TSAC others. The denied TSAC's motion to dismiss for lack jurisdiction, holding 106(a) abrogated State's Eleventh Amendment sovereign immunity. Sixth Circuit Appellate Panel affirmed, Circuit, which held Clause gave Congress authority abrogate immunity in 106(a). This granted certiorari determine whether grants such authority. Held: Because Court's loan does implicate immunity, this reach question was granted. Pp. 446-455. (a) States may bound some judicial actions without their consent. For example, bar federal jurisdiction over rem admiralty when State possess res. California v. Deep Sea Research, Inc., 523 491, 507-508. A debt's is similarly proceeding. has exclusive debtor's property, wherever located, estate. Once debts discharged, creditor who submit proof claim will unable collect his unsecured loans. able provide debtor fresh start, even all creditors do participate, because court's premised estate, creditors. res, however, nonparticipating cannot personally liable. States, or choose participate proceeding, no less than other creditors, see, e. g., New York Irving Trust Co., 288 329, 333. And res unquestioned, exercise its infringe sovereignty. argues, individualized process discharged unconstitutionally infringes If affirmatively secure 523(a)(8)'s determination, choosing themselves might receive benefit: personal liability survive discharge. misunderstands proceeding's fundamental nature it claims Congress, making presumptively nondischargeable singling out authorized suit against State. persona; were presumptive benefit nondischargeability alter underlying seek damages affirmative relief subject unwilling coercive debts. Indeed, endorsed individual determinations States' interests within courts' supra. Although specialized areas law, there reason why more threatening sovereignty jurisdiction. 446-451. (b) With regard procedure used case, require file adversary proceeding While part original case requires service see 7004. issuance normally indignity sovereignty, purpose establish jurisdiction; but allows adjudicate debtors' personam Section 523(a)(8) summons, absent Rule 7001(6) could proceed motion, raise constitutional concern. There indistinguishable practical effect should given dispositive weight. Dismissal appropriate here where attempted any outside unlike trustee recover property hands grounds transfer voidable preference. Even hold lacked ability under Clause, still have make undue hardship determination seeks. Thus, declines decide valid Amendment. remand exceeds free challenge 451-455. 319 F. 3d 755, affirmed remanded. REHNQUIST, J., delivered opinion Court, STEVENS, O'CONNOR, KENNEDY, SOUTER, GINSBURG, BREYER, JJ., joined. concurring opinion, joined, post, p. 455. THOMAS, dissenting SCALIA, CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR SIXTH CIRCUIT. Daryl J. Brand, Associate Solicitor General Tennessee, argued cause petitioner. him briefs Paul G. Summers, Attorney General, Michael E. Moore, Cynthia Kinser, Deputy Marvin Clements, Jr. Leonard H. Gerson brief respondent.* CHIEF JUSTICE REHNQUIST Court. 1 Article I, 8, cl. 4, Constitution provides shall power "[t]o . uniform Laws Bankruptcies throughout States." We private suits. we conclude initiated dischargeability purposes Amendment, affirm Appeals' judgment, 2 * Petitioner, governmental corporation created Legislature administer assistance programs. Tenn. Code Ann. 49-4-201 (2002). guarantees made residents nonresidents either enrolled eligible school through approved lender. 49-4-203. 3 Between July 1988 February 1990, respondent, Pamela Hood, resident signed promissory notes educational TSAC. In 1999, "no asset" petition Western District Tennessee; filing, $4,169.31. Sallie Mae Service, Inc. (Sallie Mae), submitted assigned TSAC.1 June 1999. See 727(a). 4 them. 727(b) (providing 727(a) discharges prepetition except listed 523(a)); units included unless impose debtor). September limited pursuant Procedure, America, Department Education, Mae, Fed. Bkrtcy. Proc. later University Account Services additional defendants deleted Mae. along each named parties. 5 response, asserting immunity.2 abrogation App. Pet. Cert. A-62. took interlocutory appeal, Puerto Rico Aqueduct Sewer Authority Metcalf & Eddy, 506 139, 147 (1993), unanimous 262 B. R. 412 (2001). appealed panel's decision Appeals Circuit. That ceded suits Constitutional Convention, therefore, Const., Art. provided necessary 767 (2003). One judge concurred concluding waived accepted Mae's claim.3 Id., 768. certiorari, 539 986 (2003), now judgment Appeals. broader addressed II 6 By terms, precludes "in law equity, commenced prosecuted one Citizens another State, Subjects Foreign State." century, recognized literal terms Hans Louisiana, 134 (1890). text refers citizens repeatedly unconsenting also immune own citizens. See, id., 15; Duhne Jersey, 251 311, 313 (1920); Great Northern Life Ins. Co. Read, 322 47, 51 (1944); Employees Dept. Public Health Welfare Mo. Mo., 411 279, 280 (1973); Edelman Jordan, 415 651, 662-663 (1974); Seminole Tribe Fla. Florida, 517 44, 55 (1996). nonetheless, 491 (1998), possession property. located historic shipwreck, Brother Jonathan, California's territorial waters. action rights wreck cargo. intervened, arguing possessed title precluded adjudicating rights. acknowledging constrain instances, 503 (citing Ex parte York, 256 490 (1921) (New I); II); Florida Treasure Salvors, 458 670 (1982)), prohibit S., 507-508 Davis, 10 Wall. 15 (1870); Pesaro, 255 216 (1921)). 8 Gardner 329 565, 574 (1947); Straton New, 283 318, 320-321 (1931); Hanover Nat. Bank Moyses, 186 181, 192 (1902); Lamp Chimney Ansonia Brass Copper 91 656, 662 (1876). courts 28 1334(e). typical voluntary 7, files he lists 1007(a)(1); constitutes relief, 301. clerk notifies 2002(l), wishes assets, claim, 3002(a); 726. chooses once releases respect voiding past future judgments operating injunction attempting debt. §§ 524(a)(1), (2); W. Norton, Law Practice 2d 48:1, 48-3 (1998) (hereinafter Norton). 9 start manner, despite participation re Collins, 173 924, 929 (CA4 1999) ("A derives rather debtors estates" (internal quotation marks omitted)); Gardner, supra, 572; Ellett, 254 1135, 1141 (CA9 2001); Texas Walker, 142 813, 822 (CA5 1998). permits "determin[e] anyone, not, thing question. `one world.'" 16 Moore et al., Moore's 108.70[1], 108-106 (3d ed. 2004). subjected liability. Freeman Alderson, 119 185, 188-189 (1886) Cooper Reynolds, 308 (1870)). Under our longstanding precedent, (1933), sustained barred York's tax fixed filing claims. "[i]f desires assets bankrupt, must requirements." 333; (holding waives claim). Van Huffel Harkelrode, 284 225, 228-229 (1931), sell "free clear" lien. At least cf. Nordic Village, 30 (1992), cases indicate sovereignty.4 Cf. Hoffman Connecticut Income Maintenance, 492 96, 102 (1989) (plurality opinion) (applying analysis sought issue money nonconsenting State). concedes generally order, Tr. Oral Arg. argues particular But 1976, significant difficult Education Amendments 439A(a), 90 Stat. 2141 (codified 20 1087-3 (1976 ed.), repealed Pub. L. 95-598, 317, 92 2678). currently governed 523(a)(8), debtor. 523(a)). 12 "self-executing." Norton 47:52, 47-137 47-138; Rep. 95-989, 79 (1978). Unless secures include 47-138. major difference between most including 13 It change contends 15-16. "individualized adjudication," 14 No matter how decided debt, monetary debt; nor process. He seeks previously Huffel, encumbrances, liens, approvingly noted chosen specifically liens taxes. 228; 572-574 (noting "that reorganization allowance State"). Our involved adjudication claimed interest, involving sovereigns, Wall., 19; Siren, 152, 159 (1869); 219. both find authority, fine, suggests manner suggested thus Amendment.5 III 17 Lastly, deal case. Creditors entitled before Bank, 192. automatically dischargeable, greater procedural protection. current "adversary proceeding" considered Collier ¶ 7003.02 (rev. 15th 2003), discussed above. But, Rules, complaint. 18 similarities traditional civil trial, THOMAS infringing Maritime Comm'n South Carolina Ports Authority, 535 743 457-460. Comm'n, party haling into Commission (FMC). applied presumption since (1890), intended `rais[e] up' proceedings `anomalous unheard adopted.'" 755. agency adjudications founding, FMC "the type proceedin[g] Framers thought agreed enter Union." 756. Noting substantial court, concluded applied, 756-763, therefore forum, 769. 19 need engage comparative affront above, long offense. Supra, 448-451. Nor dispute that, TSAC, precedent drawn distinction are, part, identical. similar litigation district irrelevant. THOMAS' interpretation adopted, Huffle, Trust, resembling adjudications, likely overruled. willing take step. process, Tribe: "The exist solely prevent federal-court paid treasury; serves avoid subjecting tribunals instance parties." 58 (citations internal omitted). 21 Here, 4A Wright A. Miller, 1070, pp. 280-281 2002) person irrelevant property). argue wants 9014 ("[I]n contested otherwise these rules, requested motion"), ignores 33-34. 22 said Idaho Coeur d'Alene Idaho, 521 261, 270 (1997), "[t]he real sacrificed elementary mechanics captions pleading." 500 (a "is determined mere names titular parties essential appears entire record"). To required exercising statutory right give impermissible effect. 2075 ("[The Rules] abridge, enlarge, modify substantive right"). Motion Dismiss Complaint Lack Jurisdiction 99-0847 (Bkrtcy. Ct. WD Tenn.), 1-2. Clearly dismissal matter, us urges do, Hood. 23 decline Liverpool, Philadelphia Commissioners Emigration, 113 33, 39 (1885) ("[We bound] never anticipate advance necessity deciding it"). course, point, concern merely hypothetical. remanded further consistent opinion. 24 so ordered. Notes: Briefs ofamici curiae urging reversal Ohio al. Jim Petro, Ohio, Douglas Cole, Solicitor, Elise Porter, Assistant Anabelle Rodríguez, Secretary Justice Rico, Attorneys respective follows: William Pryor, Jr., Alabama, Gregg Renkes Alaska, Terry Goddard Arizona, Mike Beebe Arkansas, Bill Lockyer California, Ken Salazar Colorado, Richard Blumenthal Connecticut, M. Jane Brady Delaware, Charles Crist, Thurbert Baker Georgia, Mark Bennett Hawaii, Lawrence Wasden Lisa Madigan Illinois, Steve Carter Indiana, Tom Miller Iowa, Phill Kline Kansas, Albert Chandler Kentucky, P. Ieyoub Steven Rowe Maine, Joseph Curran, Maryland, Thomas Reilly Massachusetts, Cox Michigan, Mississippi, Jeremiah (Jay) Nixon Missouri, McGrath Montana, Jon Bruning Nebraska, Brian Sandoval Nevada, Peter Heed Hampshire, Harvey Patricia Madrid Mexico, Eliot Spitzer Roy North Carolina, Wayne Stenehjem Dakota, Drew Edmondson Oklahoma, Hardy Myers Oregon, D. Fisher Pennsylvania, Henry Dargan McMaster Long Greg Abbott Texas, Shurtleff Utah, Sorrell Vermont, Jerry Kilgore Virginia, Christine O. Gregoire Washington, Darrell V. McGraw, West Peggy Lautenschlager Wisconsin, Patrick Crank Wyoming; Council Governments Ruda Bruce La Pierre. amici affirmance Commercial League America Robert Piliero; National Association Trustees Martin Sheehan, Furr, Neil Gordon; Consumer Sommer; Susan Block-Lieb Lieb; Eric Brunstad, Mr. pro se, Rheba Rutkowski, Kim; Bernard Katz Anthony Sammons Allen Grimes III; Mann Williamson; Donald Spring Hall Swaim, Mitchel Appelbaum, George Shuster, holder On November 15, assignment transferring actual 29, month December "State" pass Missouri Fiske, 290 contrary. individuals enjoin prosecuting probate contending final ownership stock. prevented entertaining "[federal] compel itself judgment." 28. "operates injunction" commence continue 524(a)(2), enforcement us. extent Fiske relevant present context, supports conclusion binding There, issue. 29. unlikely sub silentio overruled holdings implies, 463 (dissenting opinion), same year Trust. say, "a court'sin overrides immunity," 30, 38 characterizes 462, every offend concerns here, address 25 whom GINSBURG joins, concurring. 26 I join save implicit approval 44 27 SCALIA dissenting. Clause. Instead answering question, addresses regarding creditor-State. recognize concludes today, affect obtain, affects creditor-State's rights, here. exercised ignore fact (2002), clearly purposes. easier presented lacks 29 avoids addressing respondent's principal argument — basis namely, possesses suit. Instead, affirms based alternative argument, ante, 445, "an [its] jurisdiction," Brief 35. respondent advanced Appellee 00-8062, declined relied entirely Congress' theory because, reading "there exception state's immunity" bankruptcy. 01-5769 (CA6), 24. Furthermore, opposition 15.2, deem waived. Caterpillar Lewis, 519 61, 75, n. And, complex uncertain, Baldwin Reese, 27. Services, (SCMS), (FMC), independent agency, alleging state-run port violated Shipping Act 1984, 46 1701 seq. assumed "judicial power," 754, nonetheless SCMS' 31 turned "overwhelming" courts. 759. FMC's rules governing pleadings discovery very analogous Civil Procedure. 757-758. Moreover, role [administrative judge], impartial officer designated hear judge." 758 (footnote citation Based similarities, tribunal. 760-761. found "impermissible dignity answer complaints courts," equally simply takes place court. Ibid. 32 altogether, reasoning applies striking. govern part. 7003; served, 7005; opposing answer, 7007; can counterclaims movant, 7013. parties' pleadings. 7008. form comply litigation. 7010. "Likewise, [adversary proceedings] largely mirrors litigation." 758. 7026-7037 Civ. 26-37 proceedings). fails appear default applies. 7055 (adopting 55). 33 spite opposed others, Ante, 452. views differently obtain Constitution. 453. 34 Critically, explain why, asserts been utilized somehow offensive After all, object 11th [is] Ayers, 123 443, 505 (1887); 760; Alden 527 706, 748 (1999); exists, use actually subjects indignities dissent much like focused statute evaluate adjudication, 774-776 (opinion J.), opted manner. bearing control "pray[ing] proper upon hearing merits [the court] [respondent] [petitioner] allowing [respondent's] discharged." Hardship Discharge 99-22606-K, Adversary 1. 35 More importantly, although "defend itself" ordinary sense, same, done rem. preserve compelled forfeit whatever maintains FMC, enforce orders. rejected view means coerced compromise defend proceedings. 761-764. oppose hardship, 7055, matters motion). apparently otherwise, but, tellingly, support questionable proposition statement oral argument. 453-454. 36 Part I-B, infra, contest assertion bankruptcy, admiralty, necessarily reject resolved offending However, resolve what have, occur. constituted B 37 difficulty complexity scope relates complete briefing full consideration Relying recent recognition certain actions, recognizes "States consent," 446. then acknowledges undisputed 447. These facts, standing alone, extend clear potential application informed, Story's understanding regular Story doubted extended maritime [federal] founded thing; interpose act character defendant, actor." Commentaries 1689, (5th 1891). supported contrasting equity received separate grant III. 491-492. adopted narrow exception. 490, 497 ("Nor exempt operation rule [that sued consent]"). Research possession. 40 Whatever reveal principle which, any, Amendment's bar. 28, stated uncertain rem, quasi furnishes ground non-consenting "noted issue." 449, 4. weighty circumstances validity decree entered 1927, Sophie Franz life interest shares stock deceased husband. When died 1930, Franz's executor inventory declared arose those estate inheritance taxes shares. 1927 suggestion ibid., leaves doubt 41 casts characterization Village explicitly "we sovereign-immunity recovery, exists." 38. Government, exists types interpreted 106(c) waive declaratory injunctive, though monetary, Government. 34-37. render waiver injunctive "perform function" "permit[ing] amount estate's Government claim." 36. strongly i. e., waiver, Raygor Regents Univ. Minn., 534 533, 553, 42 sure, interest. (1933); 225 (1931). neither attempt undertake analysis. instance, rested "power laws bankruptcies," 331, "orderly expeditious proceedings," appeared rest requirements administration," 228, immunity.* Perhaps recognizing precedents weight reasoning, attempts limit declining 451, 5. distinguish other. reason, complicated inquiry. 43 intent clear. then, so. "Congress base powers enumerated I." Board Ala. Garrett, 531 356, 364 also, Kimel Bd. Regents, 528 62, 80 (2000) ("Congress' individuals"); Prepaid Postsecondary Ed. Expense College Savings 627, 636 (1999) ("Seminole makes powers"). Despite clarity statements, operates "uniformity requirement," 764 (CA6 2003). discussions inability limitation. reverse 45 foregoing reasons, respectfully dissent. 565 (1947), aid entertain objections asserted obviating consider context 573-574.

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