Opinion ID: 181828
Heading Depth: 1
Heading Rank: 4

Heading: Phoenix's Counterclaims

Text: Phoenix also asks us to reinstate the counterclaims it brought under 15 U.S.C. §§ 1114 and 1125 for infringement and false designation of origin; both sections announce Congress's intent to make states liable in a civil action to anyone damaged by the state's acts. But, Phoenix's counterclaims were dismissed on sovereign immunity grounds. We review the district court's grant of a motion to dismiss de novo. Thompson v. Ill. Dep't of Prof'l Regulation, 300 F.3d 750, 753 (7th Cir. 2002). The Eleventh Amendment bars suits against states and restores the sovereign immunity that the States possessed before entering the Union. Coll. Sav. Bank v. Fla. Prepaid Postsecondary Educ. Expense Bd., 527 U.S. 666, 669, 119 S.Ct. 2219, 144 L.Ed.2d 605 (1999). There are two relevant exceptions to the sovereign immunity guarantee. See id. at 670, 119 S.Ct. 2219. The first occurs when Congress acts pursuant to the Fourteenth Amendment to regulate state behavior. Id. (citing Fitzpatrick v. Bitzer, 427 U.S. 445, 96 S.Ct. 2666, 49 L.Ed.2d 614 (1976)). The second occurs when a state waives its sovereign immunity by consenting to suit. Id. (citing Clark v. Barnard, 108 U.S. 436, 2 S.Ct. 878, 27 L.Ed. 780 (1883)). Phoenix argues that its counterclaims should be reinstated under either theory.