Satterfield v. Malloy, No. 11-5144 (10th Cir. 2012)
Annotate this CaseWilliam Satterfield brought suit against Patrick J. Malloy III, the court-appointed trustee of Satterfield's Chapter 7 bankruptcy estate. The district court concluded that the suit was barred because Satterfield's claims were based on actions Malloy took as trustee and Satterfield did not first obtain permission from the bankruptcy court. Satterfield contended that the controlling case law did not apply because Malloy's actions were ultra vires. Upon review, the Tenth Circuit rejected this contention; because Malloy's allegedly wrongful actions were conducted as part of Malloy's duties as trustee. Furthermore, the Court held that Satterfield's action was not authorized by 28 U.S.C. 959 because Malloy was not carrying on the business of the estate, but simply administering its liquidation.
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