Heiss

Tarza Nelson brought this 42 U.S.C. § 1983 action against officials of the California Department of Corrections, 1 after holds were placed upon his inmate trust account. His principal contention was that 38 U.S.C. § 5301 (a), which provides for the exempt status of veteran’s benefits, was violated. The district court agreed, but determined that the Prison Officials were entitled to qualified immunity. It then granted their motion to dismiss. Fed. R.Civ.P. 12(b)(6). Both Nelson and the Prison Officials appeal. We affirm in part, reverse in part, and remand.

BACKGROUND

Nelson had an inmate trust account at Calipatria State Prison which was funded with payments of Veteran’s Disability Benefits administered by the United States Veterans Administration. He could use that account to purchase items at the prison canteen and to pay for special services that he desired. That was accomplished by the use of a “Trust Account Withdrawal Order,” which provided “I hereby request that my Trust Account be charged $_ for the purpose stated below and authorize the withdrawal of that sum from my account.”

On September 25, 1996, Nelson signed a trust account withdrawal order for $11.70 in order to…