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United States Vs. Texas
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- US Supreme Court
- Apr 05, 1993
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U.S. 529 (1993) October Term, 1992 Syllabus United States Et Al. V. TexasSearch
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is not subject to prejudgment interest because it is a penalty rather than a contractual obligation. Rodgers v. UnitedSearch
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REHNQUIST delivered the opinion of the Court. In this case we decide the question left open in West Virginia v. UnitedSearch
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issue, the District Court adopted the approach taken by the Court of Appeals for the Tenth Circuit in Gallegos v. LyngSearch
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Ibid. (quoting Mobil Oil Corp. v. HigginbothamSearch
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West Virginia v. UnitedSearch
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States, 479 U. S., at 310 (citing Royal Indemnity Co. v. UnitedSearch
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States, 313 U. S. 289 , 295-297 (1941)). In Board of Comm'rs of Jackson County v. UnitedSearch
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not abrogate the Federal Government's common-law right to collect prejudgment interest against the States. Gallegos v. LyngSearch
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F.2d 788 (1989). The Second, Third, and Eighth Circuits all hold to the contrary. See Perales v. UnitedSearch
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Pennsylvania Dept. of Public Welfare v. UnitedSearch
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Scott v. BlockSearch
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Isbrandtsen Co. v. JohnsonSearch
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Astoria Federal Savings & Loan Assn. v. SoliminoSearch
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to the question addressed by the common law. Mobil Oil Corp. v. HigginbothamSearch
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Pension Benefit Guaranty Corporation v. LTVSearch
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Corp., 496 U. S. 633 , 650 (1990) (quoting United States v. PriceSearch
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debt for which it owes prejudgment interest, but rather a penalty unilaterally imposed by Congress. See Rodgers v. UnitedSearch
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assumed.6 6 Both Texas and the Court of Appeals rely upon our decision in Pennhurst State School and Hospital v. HaldermanSearch
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unless the State's consent to pay such interest has been expressed in a statute or binding contract. United States v. NorthSearch
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and able to discharge its obligations promptly.3 created, the rule in Pennhurst does not apply. See Bell v. NewSearch
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has been manifested by an act of its legislature, or by a lawful contract of its executive officers. United States v. ShermanSearch
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Angarica v. BayardSearch
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U. S., at 216. 2 The individual States retain no sovereign immunity against the Federal Government. United States v. TexasSearch
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to the coercive powers of judicial tribunals is very much alive. See, e. g., Puerto Rico Aqueduct and Sewer Authority v. MetcalfSearch
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law. Ante, at 534. We presume that Congress understands the legal terrain in which it operates, see Cannon v. UniversitySearch
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U. S. 565 , 567-568 (1879) (emphasis added). See also United States v. NorthSearch
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Trading Co., 253 U. S. 330 , 336 (1920). 4 See n. 3, supra. 5 See, e. g., Attorney General v. CapeSearch
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State v. ThompsonSearch
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States could demand prejudgment interest on a debt owed to it by a State. Not until five years later, in West Virginia v. UnitedSearch
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abrogate a principle that it had no reason to think stood in its way. In Board of Comm'rs of Jackson County v. UnitedSearch
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Letter of Nov. 21, 1983, from Senator Charles H. Percy to the Comptroller General (emphasis added). See Texas v. UnitedSearch
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see Bread Political Action Committee v. FECSearch
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not only does not apply of its own force to the State's obligations to the Federal Government, cf. Library of Congress v. ShawSearch
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is given in response to considerations offairness. It is denied when its exaction would be inequitable. United States v. SanbornSearch
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Billings v. UnitedSearch
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Board of Commr's of Jackson County v. UnitedSearch
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Syllabus United States Et Al. V. TexasSearch
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Rodgers v. UnitedSearch
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Gallegos v. LyngSearch
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Royal Indemnity Co. v. UnitedSearch
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In Board of Comm'rs of Jackson County v. UnitedSearch
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the States. Gallegos v. LyngSearch
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See Perales v. UnitedSearch
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Scott v. BlockSearch
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