Crown Vantage: Leave Must Be Sought from Bankruptcy Court Before Initiating an Action Against a Bankruptcy Trustee in Another Forum.

In In re Crown Vantage, Inc., 421 F. 3d 963 (9th Cir. 2005), the Ninth Circuit Court of Appeals joined the First, Second, Sixth, Seventh, and Eleventh Courts of Appeal Circuit in applying the so-called "Barton Doctrine" to bankruptcy cases.  The Barton Doctrine, articulated by the Supreme Court in Barton v. Barbour, 104 U.S. 126 (1881), states that a receiver may not be sued in a court other than the court charged with the administration of the estate, absent leave of the court appointing the trustee.  The Ninth Circuit decision applies the Barton Doctrine in the bankruptcy context, such that a party must first obtain leave of the bankruptcy court before it initiates an action in another forum against a bankruptcy trustee or other officers (in its official capacity) appointed by the bankruptcy court.

Written by Mette Kurth
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