The Supreme Court is considering whether a state can be haled into another state's courts without its consent. In January, the court heard oral argument in Franchise Tax Board of California v. Hyatt, a case that will resolve whether the Constitution grants each state immunity from suit in foreign states' courts. Among other things, the case will provide valuable insight into the views of Justices Brett Kavanaugh and Neil Gorsuch on stare decisis and federalism.

In 1993, a tax auditor for the Franchise Tax Board of California (FTB) opened an audit into Gilbert P. Hyatt's 1991 and 1992 state tax returns. Eventually, FTB determined that Hyatt—a Nevada resident—owed California over $10 million in taxes, interest and penalties.

Hyatt challenged FTB's findings through administrative and legal proceedings in California. In 1998, Hyatt brought intentional tort and negligence claims against FTB in Nevada state court arising from FTB auditors' conduct during his state tax audits. FTB argued to the Nevada Supreme Court that it was entitled to sovereign immunity. The Nevada Supreme Court, however, held that FTB was only entitled to partial immunity equal to that which a Nevada government agency would receive. This required dismissal of Hyatt's negligence claims but not his intentional tort claims.