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IN RE HPA ASSOCIATES

BAP No. CC-93-2252-OHMe. Bankruptcy No. SA 87-02351-JR. Adv. No. SA 90-0919-JR.

191 B.R. 167 (1995)

In re HPA ASSOCIATES, Debtor. The EMPLOYMENT DEVELOPMENT DEPARTMENT OF the STATE OF CALIFORNIA, Appellant, v. James J. JOSEPH, Chapter 7 Trustee, Appellee.

United States Bankruptcy Appellate Panel of the Ninth Circuit.

Decided December 20, 1995.

Attorney(s) appearing for the Case

Raymond B. Jue, Los Angeles, CA, for Appellant.

Stanley Minier, Santa Ana, CA, for Appellee.

Before: OLLASON, HAGAN and MEYERS, Bankruptcy Judges.

OPINION

OLLASON, Bankruptcy Judge:

In this case, a state taxing authority has challenged the jurisdiction of the bankruptcy court to abrogate the state's sovereign immunity by rendering a money judgment against it. The agency made a demand upon an escrow company for payment of taxes owed by the debtor's partner, and was paid approximately $69,000 from estate funds. The Chapter 71 trustee sued for return of the funds, and...

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