Facts of the Case
Bonds that Hans purchased from Louisiana contained coupons that could be exchanged for interest payments. While this system had been approved by the Louisiana legislature, it later changed the state constitution to include a provision that prevented the state from making interest payments on the bonds. Hans brought an action in federal court to recover the interest payments on the bonds, arguing that the provision in the Louisiana Constitution violated the Contracts Clause in Article I, Section 10 of the U.S. Constitution. The lower court dismissed the case on the grounds of sovereign immunity under the Eleventh Amendment.
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