In Re Keith v. Pinkstaff Linda L. Pinkstaff, Debtors. Keith v. Pinkstaff Linda L. Pinkstaff v. United States
Opinion
Opinion
Leavy, J.
Chapter 13 debtors Keith and Linda Pinkstaff appeal from the district court’s affirmance of the bankruptcy court’s dismissal of their claim against the United States for damages, attorney’s fees and costs under 11 U.S.C. § 362 (h), arguing that the Internal Revenue Service (“IRS”) willfully violated the automatic stay in their case by filing a notice of federal income tax lien after the Pinkstaffs had filed their bankruptcy petition. We reverse and remand.
A debtor injured by a creditor’s willful violation of a stay is entitled to recover his actual damages, including costs and attorney’s fees, resulting from that violation. 11 U.S.C. § 362 (h). As defined by this court,
Goichman v. Bloom (In re Bloom), 875 F.2d 224, 227 (9th Cir.1989). As it is undisputed that the IRS “acted with knowledge of the bankruptcy filing,” see Carroll v. Tri-Growth Centre City, Ltd. (In re Carroll), 903 F.2d 1266, 1272 (9th Cir.1990), it necessarily follows that the government willfully violated the automatic stay. See id.
Effectively conceding all of the above, the government argues that it is not liable in damages to the Pinkstaffs because it is protected by the doctrine of sovereign immunity. We…