In Re Jerry C. Harleston in Re Donna L. Harleston, Debtors, State Board of Equalization, of the State of California v. Jerry C. Harleston Donna L. Harleston

331 F.3d 699 In re Jerry C. HARLESTON; In re Donna L. Harleston, Debtors, State Board of Equalization, of the State of California, Appellant, v. Jerry C. Harleston; Donna L. Harleston, Appellees. No. 02-55770. United States Court of Appeals, Ninth Circuit. Argued and Submitted April 7, 2003. Filed June 5, 2003. Herbert A. Levin, Deputy Attorney General, Los Angeles, CA, for the appellant. Naomi R. Bernstein, Bernstein Law Corporation, Rancho Cucamonga, CA, for the appellees. Appeal from the Ninth Circuit, Bankruptcy Appellate Panel; Klein, Brandt and Marlar, Bankruptcy Judges, Presiding. BAP No. CC-01-01417-BKMa. Before PREGERSON, TASHIMA, and CLIFTON, Circuit Judges. CLIFTON, Circuit Judge. 1 Jerry and Donna Harleston commenced an adversary proceeding against the California Board of Equalization for a declaratory judgment that their debt to the Board was discharged in a previous bankruptcy proceeding in which the Board had filed a proof of claim. The Board moved for judgment on the pleadings on the ground that it enjoyed sovereign immunity. The bankruptcy court denied the motion. The Bankruptcy Appellate Panel affirmed, concluding that the Board had waived its sovereign immunity…