United States v. Nordic Village, Inc., 503 U.S. 30, 12 (1992)

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Cite as: 503 U. S. 30 (1992)

Stevens, J., dissenting

vision.2 Thus, "notwithstanding any assertion of sovereign immunity," paragraph (c)(1) provides that § 550(a) "applies" to the United States, and paragraph (c)(2) provides that the Government is bound by the court's determination of the issues arising under that provision. The literal text of the Act unquestionably forecloses the defense of sovereign immunity.

The legislative history unambiguously demonstrates that Congress intended the statute to be read literally. The immediate purpose of § 106(c) was to enable the bankruptcy court to determine the amount and the dischargeability of the debtor's tax liabilities, but the sponsors of the amendment clearly stated that it covered "other matters as well," specifically including the avoidance of preferential transfers. 124 Cong. Rec. 32394 (1978) (statement of Rep. Edwards); id., at 33993 (statement of Sen. DeConcini).3 The congressional purpose to waive sovereign immunity is pellucidly clear.

The Court evades this conclusion by hypothesizing "plausible" alternative constructions of the statute,4 by refusing to consider its legislative history,5 and by reiterating the

2 Section 550(a) provides: "(a) Except as otherwise provided in this section, to the extent that a transfer is avoided under section 544, 545, 547, 548, 549, 553(b), or 724(a) of this title, the trustee may recover, for the benefit of the estate, the property transferred, or, if the court so orders, the value of such property, from—

"(1) the initial transferee of such transfer or the entity for whose benefit such transfer was made; or

"(2) any immediate or mediate transferee of such initial transferee."

3 See also the material summarized and quoted in my dissenting opinion in Hoffman v. Connecticut Dept. of Income Maintenance, 492 U. S. 96, 111-114 (1989). Particularly note the sponsors' comment that " '§ 106(c) permits a trustee or debtor in possession to assert avoiding powers under Title 11 against a governmental unit,' " id., at 112, and the comment that as a result of § 106(c) " 'the government is subject to avoidance of preferential transfers,' " id., at 113.

4 Ante, at 34-37.

5 Ante, at 37.

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