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Vermont Dept. of Taxes v. Quality Stores Inc. (In re Quality Stores Inc.)

Ruling
Turnover proceeding against state revenue department was not barred by sovereign immunity.
Procedural posture

Appellee retail store filed an adversary proceeding against appellant Vermont Department of Taxes pursuant to 11 U.S.C. §§ 541, 542 and 505, seeking the turnover of funds for allegedly overpaid sales taxes for two tax years. The State sought review of a decision of the bankruptcy court, which denied its motion to dismiss on the basis of sovereign immunity. The State elected to have its appeal heard by the federal district court.

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opinion summary, case decided on October 04, 2006 , LexisNexis #1006-118