9th Circuit narrows bankruptcy trustee immunity in en banc ruling

The 9th U.S. Circuit Court of Appeals sharply limited the scope of immunity available to bankruptcy trustees, ruling in an en banc decision that a Chapter 7 trustee accused of failing to preserve estate assets could face personal liability.

In Thursday’s opinion written by Judge Jacqueline H. Nguyen, the court reversed a Central District judge’s ruling that bankruptcy trustee Amy L. Goldman was immune from claims brought by creditor Tammy R. Phillips over the handling of r…