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IN RE VANGUARD MFG. CO.

BAP No. CC-91-1830-VPMe, Bankruptcy No. LA 88-19058-SB, Adv. No. AD 90-02766-SB.

145 B.R. 644 (1992)

In re VANGUARD MANUFACTURING CO., Debtor. CALIFORNIA STATE BOARD OF EQUALIZATION, Appellant, v. Arnold L. KUPETZ, Chapter 7 Trustee, Appellee.

United States Bankruptcy Appellate Panel Ninth Circuit.

Decided October 16, 1992.

Attorney(s) appearing for the Case

David S. Chaney, Los Angeles, Cal., for State of Cal.

Rosendo Gonzalez, Los Angeles, Cal., for Arnold Kupetz.

Before VOLINN, PERRIS and MEYERS, Bankruptcy Judges.

OPINION

PERRIS, Bankruptcy Judge:

The debtor's Chapter 7 trustee, Arnold Kupetz ("the trustee"), sought to avoid the postpetition transfer of funds to the appellant, the California State Board of Equalization ("the Board"). The bankruptcy court entered a judgment on the pleadings in favor of the trustee, rejecting the Board's sovereign immunity defense. We REVERSE the bankruptcy court's judgment.

FACTS

The debtor, Vanguard Manufacturing...

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