Cite as: 507 U. S. 529 (1993)
Stevens, J., dissenting
For these reasons, we hold that the Debt Collection Act left in place the federal common law governing the obligation of the States to pay prejudgment interest on debts owed to the Federal Government.
The judgment of the Court of Appeals to the contrary is accordingly
Reversed.
Justice Stevens, dissenting. As the Court correctly notes, the requirement that private parties must pay prejudgment interest on contractual debts owed to the United States is a common-law rule of long standing. Ante, at 533. Over a century ago we recognized an equally well-established exception to that rule: The United States is not entitled to recover interest from a State unless the State's consent to pay such interest has been expressed in a statute or binding contract. United States v. North Carolina, 136 U. S. 211 (1890).1 The reason for this exception is not any sovereign immunity attributable to a State,2 but the venerable presumption that a sovereign State is always ready, willing, and able to discharge its obligations promptly.3
created, the rule in Pennhurst does not apply. See Bell v. New Jersey, 461 U. S. 773, 790, n. 17 (1983).
1 "Interest, when not stipulated for by contract, or authorized by statute, is allowed by the courts as damages for the detention of money or of property, or of compensation, to which the plaintiff is entitled; and, as has been settled on grounds of public convenience, is not to be awarded against a sovereign government, unless its consent to pay interest has been manifested by an act of its legislature, or by a lawful contract of its executive officers. United States v. Sherman, 98 U. S. 565; Angarica v. Bayard, 127 U. S. 251, 260, and authorities there collected; In re Gosman, 17 Ch. D. 771." United States v. North Carolina, 136 U. S., at 216.
2 The individual States retain no sovereign immunity against the Federal Government. United States v. Texas, 143 U. S. 621 (1892).
3 "Judgments, it is true, are by the law of South Carolina, as well as by Federal legislation, declared to bear interest. Such legislation, however, has no application to the government. And the interest is no part of the
539
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