United States ex rel. Julien P. Benjamin Equipment Co. v. Sapp

The question presented by this appeal is whether a trustee in reorganization under Chapter X1 can be held personally liable on his bond for negligent failure to pay a claim for services furnished the debtor in reorganization in the course of continuing the debtor’s business under court order. The Bankruptcy Judge held that he could not be so held. On appeal, the District Judge, after expressing doubt on the basis of his personal knowledge of the trustee’s action that any basis for a claim of negligence on the part of the trustee existed, confirmed the Bankruptcy Judge’s ruling that there…