In Re Howard Carl Gustafson, Jr., Debtor. California State University, Fresno v. Howard Carl Gustafson, Jr.

The single issue before this court is whether a state is immune from suit for money damages, pursuant to 11 U.S.C. § 362 (h), for violating the Automatic Stay Provision of the Bankruptcy Code, 11 U.S.C. § 362 (a). The issue is one of first impression in this circuit. We have jurisdiction to hear this case under 28 U.S.C. § 158 (d). We find the state was immune from suit for money damages under the Eleventh Amendment for violating the automatic stay. Thus, the bankruptcy court had no jurisdiction to enter the award of sanctions against the California State University (“CSU”). Accordingly, we vacate the award of sanctions against CSU and reverse the bankruptcy appellate panel’s decision affirming the award. Ill B.R. 282.

I

Debtor-appellee Howard Carl Gustafson filed a motion for sanctions against creditor-appellant California State University, Fresno, for failure to turn over his school transcripts after he filed a Chapter 7 petition. CSU maintained that it was not required to release the transcripts until a notice of discharge was received. The bankruptcy court held that CSU’s actions in withholding the transcripts violated the automatic stay and awarded sanctions of $312.50 to…