Judges of the Court
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)
“. . .[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.