Gardner v. New Jersey
In Gardner v. New Jersey, 329 U.S. 565, 574 (1947), the U.S. Supreme Court considered a complex bankruptcy issue but issued several holdings that are often cited. The specific issues in the case were partly superseded by subsequent changes in bankruptcy law.
The Court held that a State's voluntary appearance in federal court constitutes a waiver of its Eleventh Amendment immunity.
The Court also emphasized that a bankruptcy proceeding is in rem. "The whole process of proof, allowance, and distribution is, shortly speaking, an adjudication of interests claimed in a res."
Justice William O. Douglas wrote the opinion for the unanimous Court.