The Florida Department of Revenue (“Florida DOR”) and the Virginia Department of Social Services (“Virginia DSS”) appeal the district court’s decision affirming an order of the bankruptcy court holding the agencies in contempt and awarding the debtor, Miguel Diaz, compensatory and punitive damages for the agencies’ alleged violations of the automatic stay and discharge injunction.
Exercising jurisdiction under 28 U.S.C. §§ 158(d)(1) and 1291, the Court of Appeals concluded that state sovereign immunity shields the Florida DOR and Virginia DSS from Diaz’s claims for violations of the automatic stay. Furthermore, although sovereign immunity does not bar Diaz’s claims for violations of the discharge injunction.
The Court of Appeals further concluded that neither the Florida DOR nor the Virginia DSS violated the discharge injunction.
Reversed and Remanded.