- 11 U.S.C.
Paulson v. Arbaugh (In re Paulson)
Apr
11
2012
Ruling
Trustee was not liable for acting within scope of authority with notice to debtor and approval of bankruptcy court in settling lawsuit on behalf of estate.
Procedural posture
In his complaint, plaintiff debtor alleged that defendant trustee was liable for "civil conspiracy" in connection with her settlement of a "Predatory Lending Lawsuit" with a creditor in exchange for the creditor's payment of $5,000 to debtor's bankruptcy estate, and that her actions constituted the intentional infliction of emotional distress upon debtor for which she must be personally accountable. The Trustee moved for summary judgment.
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Court
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