nordic village argued december decided february respondent nordic village filed petition relief chapter bankruptcy code one officers withdrew funds company corporate account sent part money internal revenue service irs directing apply funds individual tax liability subsequent adversary proceeding bankruptcy permitted nordic village trustee recover transfer entered monetary judgment irs district affirmed appeals rejected jurisdictional defense sovereign immunity barred judgment held section code waive sovereign immunity action seeking monetary recovery bankruptcy pp hoffman connecticut dept income maintenance control case since plurality dissent therein evenly divided issue whether authorizes monetary recovery state since deciding vote concurrence denying amenability suit rested upon eleventh amendment applicable however plurality reasoning relevant relied pp section unequivocally express waiver government immunity actions monetary relief necessary waiver effective see irwin department veterans affairs contrast plainly waive immunity regard monetary relief specified claims susceptible least two plausible interpretations authorize monetary relief legislative history bearing point unequivocal expression waiver must expression statutory text hoffman supra pp respondent several alternative grounds affirming judgment broad jurisdictional grant provides necessary waiver bankruptcy rem jurisdiction overrides sovereign immunity waiver sovereign immunity supported trust law principles unpersuasive pp scalia delivered opinion rehnquist white kennedy souter thomas joined stevens filed dissenting opinion blackmun joined richard seamon argued cause briefs solicitor general starr assistant attorney general peterson deputy solicitor general roberts gary gray john dudeck marvin sicherman argued cause filed brief respondent brief michael zaverton justice scalia delivered opinion respondent nordic village filed petition relief chapter bankruptcy code march four months later josef lah officer shareholder nordic village drew check company corporate account used obtain cashier check amount payable internal revenue service irs lah delivered check irs directed apply funds individual tax liability december trustee appointed nordic village commenced adversary proceeding bankruptcy northern district ohio seeking recover among transfers paid lah irs bankruptcy permitted recovery unauthorized postpetition transfer determined avoided recovered irs bankruptcy code entered judgment irs amount district affirmed divided panel appeals sixth circuit affirmed upheld reasoning lower courts rejected jurisdictional defense raised first time appeal sovereign immunity barred judgment entered government granted certiorari ii section bankruptcy code provides governmental unit deemed waived sovereign immunity respect claim governmental unit property estate arose transaction occurrence governmental unit claim arose shall offset allowed claim interest governmental unit claim governmental unit property estate except provided subsections section notwithstanding assertion sovereign immunity provision title contains creditor entity governmental unit applies governmental units determination issue arising provision binds governmental units contrary government suggestion hoffman control today decision true sure congress made clear insofar within congress power state federal sovereigns treated immunity purposes see supp ii governmental unit means state since however hoffman evenly divided treatment since deciding vote concurrence denying amenability suit rested upon ground eleventh amendment applicable federal government see fha burr holding hoffman binding force separate opinions dealing statutory question relevant however shall fact rely reasoning plurality iii waivers government sovereign immunity effective must unequivocally expressed irwin department veterans affairs quoting mitchell king contrary respondent suggestion moreover generally liberally construed occasion narrowly construed exceptions waivers sovereign immunity consistent congress clear intent context sweeping language federal tort claims act yellow cab see block neal aetna casualty surety context equally broad sue sued clauses see franchise tax board california postal service fha burr supra cases however eradicate traditional principle government consent sued must construed strictly favor sovereign mcmahon enlarge beyond language requires ruckelshaus sierra club quoting eastern transp rule construction occasion reaffirm already term see ardestani ins subsections meet unequivocal expression requirement respect monetary liability addressing claim code defines right payment plainly waive sovereign immunity regard monetary relief two settings compulsory counterclaims governmental claims permissive counterclaims governmental claims capped setoff limitation next models clarity stands subsection though waives sovereign immunity fails establish unambiguously waiver extends monetary claims susceptible least two interpretations authorize monetary relief one interpretation permits bankruptcy issue declaratory injunctive though monetary relief government hoffman conclusion reached reading two paragraphs subsection complementary rather independent first paragraph identifies subject matter disputes courts may entertain subsection second paragraph describes relief courts may grant disputes say second paragraph specifies manner shall applied governmental units provisions identified first paragraph manner permits declaratory injunctive relief affirmative monetary recovery several factors favor construction distinction establishes suits monetary claims suits relief familiar one suggested contrasting language used subsections claim subsection determination issue hoffman also avoids eclipsing carefully drawn limitations placed waivers subsections principal provision code permitting assertion claims persons estate provides entity owes debt property estate matured payable demand payable order shall pay debt order trustee first paragraph means reason use entity provision applies respects governmental units government may sued alleged debts despite prior specification subsections claims government lie government filed proof claim even setoff unless claim compulsory counterclaim earlier limitations reduced trivial application paragraph stands see construction also attaches practical consequences paragraph whereas respondent interpretation violates settled rule statute must possible construed fashion every word operative effect see menasche respondent suggested function performed paragraph paragraph operates treat government like entity creditor regardless type relief authorized applicable code provision interpretation though authorizing claims monetary relief nevertheless perform significant function permit bankruptcy determine amount dischargeability estate liability government unpaid federal taxes see permitting determine amount legality tax emphasis added whether government filed proof claim see cf neavear schweiker holding bankruptcy discharge debt owed social security administration government repeatedly objected grounds sovereign immunity bound determinations enacted see mckenzie bostwick gwilliam durensky nd tex appeal dism subsection also susceptible another construction permit recovery two paragraphs read independent rather second limiting first pursuant first paragraph code provisions using triggering words enumerated paragraph apply fully governmental units application provisions limited requirements subsections accordance phrase introduces subsection except provided subsections section exception words read mean rules established subsections waiver government claim property estate exclusive preclude resort subsection purpose reading bar present suit since right recover postpetition transfer clearly claim defined property estate defined dissent appears read paragraphs independent provides explanation textual exception mean reading foregoing assuredly readings subsection plausible ones enough establish reading imposing monetary liability government unambiguous therefore adopted contrary respondent suggestion legislative history bearing ambiguity point eleventh amendment context see hoffman unequivocal expression elimination sovereign immunity insist upon expression statutory text clarity exist supplied committee report cf dellmuth muth iv respondent proposes several alternative grounds affirming judgment unpersuasive first claims necessary waiver found grants district bankruptcy case initiated exclusive jurisdiction property wherever located debtor commencement case property estate respondent urges us construe language empowering bankruptcy compel state return property including money passes estate upon commencement bankruptcy proceeding theory sovereign exposure suit governed specific language concealed broad jurisdictional grant besides unprecedented running afoul requirement theory closely resembles argument rejected last term blatchford native village noatak argument made alaska eleventh amendment immunity suit abrogated jurisdictional grant akin gives district courts jurisdiction civil actions brought indian tribe aris ing constitution laws treaties rejecting contention observed fact congress grants jurisdiction hear claim suffice show congress abrogated defenses claim issues wholly equally unpersuasive respondent related argument bankruptcy rem jurisdiction overrides sovereign immunity initial matter premise argument missing since respondent invoke bankruptcy purport exercise rem jurisdiction respondent sought recover sum money particular dollars cf begier irs emphasis deleted res rem jurisdiction attached see pennsylvania turnpike mcginnes cert denied event never applied rem exception sovereign immunity bar monetary recovery suggested exception exists see shaw whiting pools establish exception otherwise permit relief requested case upheld bankruptcy order irs turn tangible property debtor seized debtor filed bankruptcy protection suit payment funds treasury quite different suit return tangible property debtor retained ownership opinion whiting pools contains discussion nothing suggests order granting monetary recovery proper resort principles trust law also help respondent trust decisions respondent cites irrelevant since involve private entities government one involve government bull concerns equitable recoupment doctrine substantially narrowed later cases see dalm application ordered justice stevens justice blackmun joins dissenting officer insolvent corporation appropriated corporate funds used discharge personal tax obligation federal government ultimate recipient stolen property holds bankruptcy trustee avoid transfer interest rigid interpretation doctrine sovereign immunity outweighs interest equitable treatment general creditors shareholders corporate debtor result neither necessary necessary text legislative history bankruptcy code support contrary result nothing misguided interest adherence obsolete rules stake shall comment first laws enacted congress rules ordained text straightforward case involve either counterclaim offset subsections applicable subsection provides except provided subsections section notwithstanding assertion sovereign immunity provision title contains creditor entity governmental unit applies governmental units determination issue arising provision binds governmental units legislative history unambiguously demonstrates congress intended statute read literally immediate purpose enable bankruptcy determine amount dischargeability debtor tax liabilities sponsors amendment clearly stated covered matters well specifically including avoidance preferential transfers statement edwards statement deconcini congressional purpose waive sovereign immunity pellucidly clear evades conclusion hypothesizing plausible alternative constructions statute refusing consider legislative history reiterating view waivers sovereign immunity must strictly construed shall comment plausible alternatives except note obviously less satisfactory matter sound bankruptcy policy principled interpretation english language literal reading statute shall however add words love affair doctrine sovereign immunity ii despite ancient lineage doctrine sovereign immunity nothing rule sometimes favored sometimes disfavored original reliance notion divinely ordained monarch wrong course thoroughly discredited moreover persistent threat impartial administration justice repeatedly acknowledged recognized thus fha burr remarked current disfavor doctrine governmental immunity suit time time congress taken action ameliorate hardship doctrine half century ago observed sense justice brought progressive relaxation legislative enactments rigor immunity rule representative governments attempt ameliorate inequalities necessities permit prerogatives government yield needs citizen authority given liberally construed shaw commission also recommends unpaid taxes entitled priority reduced accruing within three years prior bankruptcy accruing within one year prior bankruptcy government given priority taxes bankruptcy proceeding including secured tax lien data submitted commission treasury department establishes total amount collected federal government result liens priorities bankruptcy proceedings insignificant total federal budget view commission unseemly federal government insist upon collecting taxes expense creditors taxpayer possible justification plea necessity order keep government functioning indicated plea totally without foundation fact federal government enters business transactions prepared deal upon basis equality creditors bankrupt business report commission bankruptcy laws pt surely interest requiring congress draft legislation greater clarity precision justify refusal make good faith effort ascertain actual meaning message tried convey statutory provision already books stubborn insistence clear statements burdens congress unnecessary reenactment provisions already plain enough read literally cost litigants legislature public large sort judicial lawmaking substantial unfortunate impact individual citizens engaged litigation sovereign tragic fact congress ample power correct unfortunate error justify refusal obey command respectfully dissent footnotes section provides except otherwise provided section extent transfer avoided section title trustee may recover benefit estate property transferred orders value property initial transferee transfer entity whose benefit transfer made immediate mediate transferee initial transferee see also material summarized quoted dissenting opinion hoffman connecticut dept income maintenance particularly note sponsors comment permits trustee debtor possession assert avoiding powers title governmental unit comment result government subject avoidance preferential transfers ante ante ante see library congress shaw consent necessary waive traditional immunity must express must strictly construed quoting rayon importing ruckelshaus sierra club waivers immunity must construed strictly favor sovereign enlarge beyond language requires sherwood relinquishment sovereign immunity must strictly interpreted construe statutory language conservatism see bock neal exemption sovereign suit involves hardship enough consent withheld add rigor refinement construction consent announced quoting anderson hayes constr cardozo indian towing frankfurter guardian treasury import immunity back statute designed limit canadian aviator thwart broad statutory language authorizing suit unduly restrictive interpretation see blackstone commentaries see nevada hall fiction king wrong rejected colonists declared independence crown landord understand english maxim king wrong existence country see davis sovereign immunity must go pugh historical approach doctrine sovereign immunity borchard government liability tort yale many legal scholars similarly critical doctrine see comment sovereign immunity anathema constitutional tort santa clara law collecting authorities cramton nonstatutory review federal administrative action need statutory reform sovereign immunity subject matter jurisdiction parties defendant davis supra pugh supra recognizing lack current justification inequities caused judicially created doctrine several state courts abrogated limited immunity state local governments see note rethinking sovereign immunity bivens collecting cases whiting pools first held reorganization estate includes property debtor seized creditor prior filing petition reorganization explained see reason different result obtain irs creditor service bound extent secured creditor bankruptcy code expressly term entity used includes governmental unit see tr oral arg moreover congress carefully considered effect new bankruptcy code tax collection see generally report senate finance committee decided provide protection tax collectors irs grants enhanced priorities unsecured tax claims nondischarge tax liabilities pp code cong pp tax collectors also enjoy generally applicable right adequate protection property subject liens nothing bankruptcy code legislative history indicates congress intended special exception tax collector form exclusion estate property seized satisfy tax lien ibid one scholar comment countermajoritarian thrust fascination clear statement rules illustrative dellmuth muth held education handicapped act eha abrogate state immunity reached result even though law imposed substantive obligations directly included jurisdictional grant included legislative discussion assuming sued changed clear statement rule congress responded broad textual abrogation state immunity statutes protecting disabled yet dellmuth held eha meet stringent test abrogation statute made clear congress intent abrogate state immunity lawsuits filed congress overrode dellmuth congress pass statute three times achieve original goal quite striking eskridge overriding statutory interpretation decisions yale footnotes omitted