UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549




                                    FORM 8-K


                                 CURRENT REPORT


                     Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934

       Date of Report (Date of earliest event reported) August 17, 2004

                      CENTURY PENSION INCOME FUND XXIII
            (Exact name of Registrant as specified in its charter)


            California                0-14528                 94-2963120
      (State or other jurisdiction  (Commission            (I.R.S. Employer
           of incorporation         File Number)        Identification Number)

                                55 Beattie Place
                              Post Office Box 1089
                        Greenville, South Carolina 29602
                    (Address of principal executive offices)


                                 (864) 239-1000
                           (Issuer's telephone number)

Check  the  appropriate  box  below  if the  Form  8-K  filing  is  intended  to
simultaneously satisfy the filing obligations of the registrant under any of the
following provisions:

[ ]   Written  communications  pursuant to Rule 425 under the  Securities  Act
      (17 CFR 230.425)

[ ]   Soliciting  material  pursuant to Rule 14a-12 under the Exchange Act (17
      CFR 240.14a-12)

[ ]   Pre-commencement  communications  pursuant  to Rule  14d-2(b)  under the
      Exchange Act (17 CFR 240.14d-2(b))

[ ]   Pre-commencement  communications  pursuant  to Rule  13e-4(c)  under the
      Exchange Act (17 CFR 240.13e-4(c))









Item 8.01   Other Events.

On August 17, 2004 Century  Pension Income Fund XXIII  ("CPIF") was sued,  along
with CPIF's managing general partner, Fox Capital Management Corporation and its
general  partner,  Fox Partners V. The suit was brought in the Supreme  Court of
the State of New York,  New York  County by J.P.  Morgan  Trust  Company,  N.A.,
("Trustee")  formerly Chase  Manhattan  Bank & Trust  Company,  N.A., as Trustee
under the Trust  Indenture  dated as of February 22, 1984.  The Trustee  alleges
claims of breach of  contract,  money had and  received,  and unjust  enrichment
based on defendants'  alleged breaches of their  obligations under a Forbearance
Agreement dated as of November 3, 1999. The Trustee seeks the payment of certain
funds that it contends were  improperly  withheld or  misappropriated  under the
Forbearance Agreement.  In its breach of contract claim, the Trustee claims that
it is entitled to $713,151 plus interest,  which is comprised of management fees
paid to Fox Partners V and  outstanding  reserves  allegedly due to the Trustee.
CPIF will  vigorously  defend the  litigation.  At this time it is  premature to
determine whether the litigation will have a material adverse effect on CPIF.







                                    SIGNATURE


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.



                                CENTURY PENSION INCOME FUND XXIII
                                (a California Limited Partnership)


                               By: Fox Partners V
                                    General Partner


                                By: Fox Capital Management Corporation
                                    Managing General Partner

                                By: /s/Martha L. Long
                                    Martha L. Long
                                    Senior Vice President


                              Date: September 23, 2004