Central Virginia Community College v. Katz

Wallace's Bookstores, Inc. filed for Chapter 11 bankruptcy. Before filing, it had transacted with Central Virginia Community College and other Virginia state schools (defendants), which count as state actors for sovereign-immunity purposes. Bernard Katz (plaintiff), as liquidating supervisor of Wallace's estate, asked the bankruptcy court to set aside certain transfers to the schools as improper preferences. The schools argued sovereign immunity barred the claims. The bankruptcy court, district court, and Sixth Circuit all rejected that defense, and the schools sought Supreme Court review.