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Katz also petitioned to prevent the schools from filing claims to collect money from the bookstore because of its bankruptcy status. The colleges argued that they could not be sued by Katz because of state sovereign immunity (which holds that a state must consent in order to be sued). The bankruptcy court disagreed, however, finding that Congress\u0027s authority under the Bankruptcy Clause of the Constitution (Article I Section 8) was sufficient to allow them to waive states\u0027 sovereign immunity in bankruptcy cases.\u003C\/p\u003E\n","question":"\u003Cp\u003EDoes the Bankruptcy Clause of the U.S. Constitution (Article I Section 8), waive the states\u0027 sovereign immunity?\u003C\/p\u003E\n","conclusion":"\u003Cp\u003EYes. In a 5-4 decision written by Justice John Paul Stevens, the Court ruled that states cannot invoke sovereign immunity as a defense in bankruptcy proceedings. 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