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Bankruptcy | Case Law | Trustee
TRUSTEES
In re Harris, 590 F.3d 730 (9th Cir. 2009)
Bankruptcy court had “arising in” jurisdiction over an action against a chapter 7 trustee
alleging breach of a postpetition settlement agreement, since the claim could not exist
independently of a bankruptcy. Bankruptcy court erroneously dismissed this case under the Barton
doctrine. The case was filed against the trustee without seeking permission of the appointing court,
but was then removed to the appointing court. Thus, the Barton doctrine did not apply.
In re AFI Holding, Inc., 355 B.R. 139 (9th Cir. BAP 2006), aff’d and remanded, 530 F.3d 832 (9th
Cir. 2008)(for determination of removed trustee’s right to fees).
Chapter 7 trustee had a material conflict of interest and thus was not disinterested as
required by § 701(a)(1) where she previously represented insiders of the debtor. Totality of
circumstances test applied. Failure to disclose all connections and appearance of inpropriety also
supported her removal from the case.
In re Crown Vantage, Inc., 421 F.3d 963, 970 (9th Cir. 2005)
Under the Barton doctrine, “a party must first obtain leave of the bankruptcy court before it
initiates an action in another forum against a bankruptcy trustee or other officer appointed by the
bankruptcy court for acts done in the officer’s official capacity.”
In re American Eagle Mfg., Inc., 231 B.R. 320 (9th Cir. B.A.P. 1999)
Otherwise-valid Chapter 7 trustee election could not be set aside under procedural rule
requiring motion for election certification no later than 10 days after creditor’s meeting. Rule
2003(d) is invalid.
In re Giordano, 212 B.R. 617 (9th Cir. B.A.P. 1997), aff’d in part, rev’d in part, 202 F.3d 277 (9th
Cir. 1999)
Bankruptcy trustee entitled to derived judicial immunity absent showing of dishonesty or
bad faith.
In re Kashani, 190 B.R. 875 (9th Cir. B.A.P. 1995)
1. Leave of court must be obtained before trustee may be sued in any court other than
appointing court
2. No abuse to require debtors to attach a proposed complaint to their motion for leave.