The state of Montana is shielded by sovereign immunity from a bankruptcy court lawsuit brought by former billionaire entrepreneur Timothy Blixseth, a federal appeals court ruled.
The US Court of Appeals for the Ninth Circuit said in a ruling Wednesday that the US Bankruptcy Court for the District of Nevada erred in finding that the Montana Department of Revenue waived its constitutional right to sovereign immunity by initiating and pursuing an involuntary bankruptcy against Blixseth.
Montana never waived its sovereign immunity by pursuing the involuntary bankruptcy to collect on an unpaid tax, and Blixseth’s suit within the bankruptcy proceedings doesn’t ...
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