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IN RE SUPREME BEEF PROCESSORS, INC.

No. 03-41345.

468 F.3d 248 (2006)

In the Matter of: SUPREME BEEF PROCESSORS, INC., Debtor. Stephen Zayler, Trustee of the Estate of Supreme Beef Processors, Inc., Appellant, v. Department of Agriculture; United States of America, Appellees.

United States Court of Appeals, Fifth Circuit.

October 19, 2006.

Attorney(s) appearing for the Case

Deborah Johnson Race, (argued), Ireland, Carroll & Kelley, Tyler, TX, for Appellant.

Mark Bernard Stern, (argued), Dana Joan Martin, U.S. Dept. of Justice, Civ. Div.-App. Staff, Washington, DC, for Appellees.

Before JONES, Chief Judge, and JOLLY, HIGGINBOTHAM, DAVIS, SMITH, WIENER, BARKSDALE, GARZA, DeMOSS, BENAVIDES, STEWART, DENNIS, CLEMENT, PRADO, and OWEN, Circuit Judges.

EDITH H. JONES, Chief Judge:**

In this bankruptcy case, the debtor, Supreme Beef Processors, Inc. ("Supreme Beef"), asserts that it may pursue tort claims against the United States Department of Agriculture ("USDA") that would be barred by the federal government's sovereign immunity outside of bankruptcy. The district court dismissed Supreme Beef's claims, but a panel of this court held that permissive counterclaims against the Government...

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