11 U.S.C. § 324
Removal of trustee or examiner
This section permits the court, after notice and a hearing, to remove a trustee for cause.
1986—Pub. L. 99–554 amended section generally, designating existing provisions as subsec. (a), substituting “a trustee, other than the United States trustee, or an examiner” for “a trustee or an examiner”, and adding subsec. (b).
Effective date and applicability of amendment by Pub. L. 99–554 dependent upon the judicial district involved, see section 302(d), (e) of Pub. L. 99–554, set out as a note under section 581 of Title 28, Judiciary and Judicial Procedure.
Notes of Decisions
Cited in 164
cases (18 in the last 5 years), 1982–2026 · leading case: Morgan v. Goldman (In Re Morgan)
Morgan v. Goldman (In Re Morgan) (2007)
“§ 105 (a); 11 U.S.C. § 324 ; 11 U.S.C. § 1302 , and 28 U.”
AFI Holding, Inc. v. Brown (2008)
“Dye appeals from a decision of the United States Bankruptcy Appellate Panel (“BAP”) for the Ninth Circuit affirming the order of the bankruptcy judge removing her as Trustee for cause pursuant to 11 U.S.C. § 324 in this Chapter 7 proceeding.”
In Re Soundview Elite Ltd. (Fletcher v. Ball) (2016)
“A bankruptcy court’s denial of a motion to remove the trustee under 11 U.S.C. § 324 (a) is reviewed for abuse of discretion.”
Fletcher International, Ltd. v. Davis (In Re Fletcher International, Ltd.) (2016)
“Under 11 U.S.C. § 324 (a), the bankruptcy court may, “remove a trustee .”
Yosef A. Maiman & Merhav (M.N.F.) Ltd. v. Spizz (In re Ampal-American Israel Corp.) (2016)
“While Appellants press that the Trustee’s joining TKD violates the letter of the Discovery Order, the Court concurs with the Bankruptcy Court that there is no danger of disclosure of this sensitive information to Shapira — particularly given that TKD’s relationship with Shapira…”
Reed v. Cooper (In Re Cooper) (2009)
“11 U.S.C. § 324 . But, it would seem to be, generally, an unwise idea to allow a creditor to usurp the trustee’s role as a representative of the estate ( 11 U.”
Ritchie Special Credit Investments, Ltd. v. United States Trustee (2010)
“Although Ritchie can seek Kelley’s removal for cause under 11 U.S.C. § 324 , Ritchie would be unable to obtain the relief it seeks' — ’the appointment of PGW’s own trustee at the outset of the bankruptcy proceedings — in the absence of our immediate review.”
In Re Dinubilo (1993)
“On February 14, 1991, OUST filed a motion to remove the Case Trustee under 11 U.S.C. § 324 (a) 2 for alleged nonperformance of his duties by failure to expeditiously pursue the debtor’s improper transfers of real property; failure to investigate the presence of equity in real…”
United States Trustee v. Repp (In Re Sheehan) (1995)
“Trustee is seeking to have Repp removed as Trustee in this case pursuant to 11 U.S.C. § 324 (a). In the event Repp is removed as Trustee under that section, it will have the effect of removing her as Trustee in all cases which she is still serving as the Chapter 7 Trustee.”
In Re: Craig Piazza, Craig Piazza v. Nueterra Healthcare Physical Therapy, LLC (2013)
“2008) (holding that 11 U.S.C. § 324 authorizes bankruptcy courts to remove a trustee sua sponte because that statute permits dismissal "for cause” and "does not require that a 'party in interest’ request the removal”).”
In re BH & P Inc. (1991)
“§ 701 (a)(1) and was, therefore, removable for “cause” pursuant to 11 U.S.C. § 324 . The court held that RGZ and the other professionals assisting Maggio should also be disqualified in the Herman and Berkow cases, reasoning that these professionals also failed to qualify as…”
Mediofactoring v. McDermott (In Re Connolly North America, LLC) (2015)
“See 11 U.S.C. § 324 (providing the bankruptcy court with authority to remove an acting trustee).”
— 11 U.S.C. § 324(a) — 1 case
United Tax Group, LLC (2020)
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