State of Louisiana v. Public Investors, Inc. v. Robert L. Marrero, Trustee of the Bankruptcy Estate of Public Investors, Inc.

WISDOM, Circuit Judge:

The State of Louisiana sued a bankrupt insurance holding company, and the company’s bankruptcy trustee filed a counterclaim. The State voluntarily dismissed its claim against the company. The district court then dismissed the trustee’s counterclaim against the state, holding it barred by the State’s Eleventh Amendment sovereign immunity and by the statutory “discretionary function” exception from liability of La.Rev.Stat. § 9:2798.1. The trustee appeals the dismissal of his counterclaim. We find it unnecessary to look beyond the state statute to resolve this case, and we…