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Leon v. Hirsch

Appellate Division of the Supreme Court of New York, Second Department
Jun 3, 1996
228 A.D.2d 417 (N.Y. App. Div. 1996)

Opinion

June 3, 1996

Appeal from the Supreme Court, Westchester County (Nicolai, J.).


Ordered that the order is affirmed, with costs.

Bankruptcy trustees may sue and be sued in State court, without leave of the appointing court, when the debtor represented by the trustee would have been a proper party to the action ( see, 28 U.S.C. § 959; 11 U.S.C. § 323; Pereira v. Phillips, 154 Misc.2d 155). However, when a trustee is sued personally for wrongful conduct involving the assets of a bankrupt estate, the Bankruptcy Court has exclusive subject matter jurisdiction ( see, Maguire v Puente, 120 Misc.2d 871; Chappel v. First Trust Co., 30 F. Supp. 765).

The causes of action that were dismissed by the Supreme Court were interposed against the defendant Eric C. Kurtzman personally or against his law firm, the defendant Kurtzman Haspel, for wrongful acts allegedly committed while Kurtzman was a bankruptcy trustee. These causes of action are within the exclusive jurisdiction of the Bankruptcy Court which appointed Kurtzman and cannot be maintained in the Supreme Court. Mangano, P.J., Thompson, Florio and McGinity, JJ., concur.


Summaries of

Leon v. Hirsch

Appellate Division of the Supreme Court of New York, Second Department
Jun 3, 1996
228 A.D.2d 417 (N.Y. App. Div. 1996)
Case details for

Leon v. Hirsch

Case Details

Full title:BARRY J. LEON et al., Appellants, v. HAL M. HIRSCH et al., Defendants, and…

Court:Appellate Division of the Supreme Court of New York, Second Department

Date published: Jun 3, 1996

Citations

228 A.D.2d 417 (N.Y. App. Div. 1996)
643 N.Y.S.2d 420

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