The Montana Department of Revenue must face a bankruptcy court lawsuit over its role in pursuing disputed creditor claims against former billionaire Timothy Blixseth, a judge ruled, finding the state waived its constitutional right to sovereign immunity.
Montana can’t use the 11th Amendment to avoid Blixseth’s allegations that the state acted in bad faith as it spent years keeping his involuntary Chapter 7 case alive, Judge Mike Nakagawa of the US Bankruptcy Court for the District of Nevada ruled Wednesday.
The ruling allows Blixseth to continue prosecuting his lawsuit seeking a bad faith judgment and the recovery of reasonable costs ...
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