Taxel
Taxel v. California Employment Development Department
Opinion
Lead Opinion
Hargrove, J.
MEMORANDUM DECISION
Presently pending is the State of California’s motion to dismiss the trustee’s com *735 plaint, and the trustee’s motion for summary judgment. Harold S. Taxel (“Taxel”) is the trustee for the Chapter 7 debtor, Del Mission Limited. The California Employment Development (“EDD”) and the California State Board of Equalization (“the Board”) are administrative agencies of the State of California and the defendants in the trustee’s action for recovery of over payment of penalties and interest, and for imposition of sanctions for violation of the automatic stay.
At issue is whether the trustee in a bankruptcy proceeding can recover payments required by the State as a condition to its allowing the sale of a liquor license. The payments consisted of unpaid taxes and post-petition interest and penalties on pre-petition claims. Also at issue is whether the State violated the automatic stay under 11 U.S.C. § 362 (a)(6) when it failed to obtain relief from stay before demanding such payments.
This court has jurisdiction to hear this matter pursuant to 28 U.S.C. § 1334 and § 167 and General Order No. 312-D of the United States District Court, Southern District of…