Horizon Bank & Trust Co. v. Massachusetts

LYNCH, Circuit Judge.

On the merits this case presents very difficult issues under the Eleventh Amendment about whether the United States, asserting a tax claim, may remove an in-terpleader action to federal court when an unconsenting state, which is also a party with its own tax claim, asserts its Eleventh Amendment immunity and argues that it is an indispensable party. We never reach those merits issues because the appeal is moot. The state has conceded that two other creditors including the United States have superior claims, and that satisfaction of those claims leaves no remaining assets…