Thursday, August 8, 2013

5th Circuit upholds claim against Chapter 7 Trustee bond for her gross negligence - Ouch!

As a an attorney and Chapter 7 Trustee I hate to see claims of malpractice and/or breaches of fiduciary duty.  However, we all know that they occur but it is only on occasion do we see an actual case that discusses the issue.  On August 6, 2013, the 5th Circuit did just that and examined the liability of a the trustee's surety bond for a Trustee's gross negligence.  I will let all of you form your own opinion on whether this Trustee committed gross negligence but based upon the facts stated in the opinion I am not totally convinced.   

In re Schooler, 8-6-13 (5th Cir)

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