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IN RE QUALITY STORES, INC.

No. 1:05-CV-276.

354 B.R. 840 (2006)

In re QUALITY STORES, INC., et al., Debtors. Vermont Department of Taxes, Appellant, v. Quality Stores, Inc., et al., Appellees.

United States District Court, W.D. Michigan, Southern Division.

October 5, 2006.

Attorney(s) appearing for the Case

Karen R. Cordry, Naag Bankruptcy Counsel, Special Assistant Attorney General, State of Vermont, Washington, DC, Stephen W. Gould, Vermont Department of Taxes, Montpelier, VT, for Appellant.

Quality Stores, Inc., Grand Rapids, MI, pro se.

Janet S. Baer, Kirkland & Ellis, Chicago, IL, Timothy J. Curtin, Jon M. Bylsma, Randall J. Groendyk, Varnum Riddering Schmidt & Howlett LLP, Grand Rapids, MI, for Appellees.

OPINION

ROBERT HOLMES BELL, Chief Judge.

This is an appeal from an order in a bankruptcy case denying a state's motion to dismiss on the basis of sovereign immunity.

I.

Quality Stores, Inc. ("Quality") operated a retail store in Vermont. On October 20, 2001, creditors of Quality filed an involuntary petition for bankruptcy relief against Quality in this Court. Quality closed its retail...

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