Thomas Tew, Trustee for the Bankruptcy Estate of Esm Government Securities, Inc. v. Arizona State Retirement System

Arizona State Retirement System appeals the district court’s grant of summary judgment to the trustee for the bankruptcy estate of ESM Government Securities, Inc., in the trustee’s suit to recover money Arizona allegedly owed the estate. We reverse the district court, holding that the suit is barred by the Eleventh Amendment.

The facts were stipulated: On March 1, 1985, Arizona bought nine securities from debtor ESM — three U.S. treasury bills, three U.S. treasury bonds, and three U.S. treasury notes — for $210 million. At the time of the sale, ESM agreed to repurchase eight of those…