Legal Opinion

Dye v. Brown (In Re AFI Holding, Inc.)

United States Bankruptcy Appellate Panel for the Ninth Circuit

Decided October 25, 2006No. BAP No. CG-05-1247-MaPaK, Bankruptcy No. LA 01-41567-VZPublishedCited by 26 opinions

1Opinion of the Court

OPINION

MARLAR, Bankruptcy Judge.

INTRODUCTION

The chapter 7 1 trustee has appealed the bankruptcy court’s order of removal, which found that she was not disinterested due to a material conflict of interest. She contends that the bankruptcy court applied an incorrect legal standard under § 324, and challenges the court’s findings.

We hold that the bankruptcy court properly applied a totality-of-cireumstances test in making its determination that the trustee’s prior connections with insiders negatively impacted the administration of the estate. Since disinterestedness is a requirement for service…

2Cases cited45 opinions

  1. United States v. Ron Pair Enterprises, Inc.Supreme Court of the United States · 1989
  2. In Re SnyderSupreme Court of the United States · 1985
  3. Mosser v. DarrowSupreme Court of the United States · 1951
  4. In Re Larry T. & Cynthia J. Martin D/B/A a & W Drive-In Restaurant & Martin's Exxon, Debtors. Appeal of Larry T. & Cynthia J. MartinCourt of Appeals for the First Circuit · 1987
  5. In Re RobertsUnited States Bankruptcy Court, D. Utah · 1985

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3Cited by26 opinions

  1. AFI Holding, Inc. v. BrownCourt of Appeals for the Ninth Circuit · 2008
  2. In Re South Beach Securities, Inc.Court of Appeals for the Seventh Circuit · 2010
  3. Yosef A. Maiman & Merhav (M.N.F.) Ltd. v. Spizz (In re Ampal-American Israel Corp.)United States Bankruptcy Court, S.D. New York · 2016
  4. In Re Count Liberty, LLCUnited States Bankruptcy Court, C.D. California · 2007
  5. In re Tres-Ark, Inc.United States Bankruptcy Court, W.D. Texas · 2012

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