Farrell v. American Executive Management, Inc. (In Re North Star Management, LP)

KRESSEL, Chief Judge.

American Executive Management appeals from an order of the bankruptcy court granting judgment to the trustee. We reverse.

BACKGROUND

The debtors owned and operated a hotel in Bismarck, North Dakota. On February 14, 2001, the debtors filed for bankruptcy relief under Chapter 11. On March 21, 2001, the debtors moved the bankruptcy court to employ American Executive Management, a hotel management company, to manage the hotel. On April 6, 2001, the bankruptcy court approved the employment of American Executive Management. The bankruptcy court’s order provided that the terms of…