Volunteer appearance of state in federal court waives Eleventh Amendment immunity for all compulsory counterclaims.

The Eleventh Amendment to the United States Constitution immunizes states from being sued in federal court. But a state wanes that immunity when it consents to federal court jurisdiction by voluntarily appearing in federal court. [Clark v. Barnard, 108 U.S. 436, 447 (1883).] In a case of first impression, the Federal Circuit recently held that a waiver extends to all compulsory counterclaims, not just counterclaims in recoupment. [Regents of the University of New Mexico v. Knight, 2003 WL 554462, Nos. 02-1018, 02-1019 (Fed. Cir. 2003).]

Dr. Terence Scallen and Galen D. Knight are researchers who developed several inventions relating to certain compounds for treating cancer at the University of New Mexico. A dispute arose between these researchers and the University …