United States Third Circuit

In a case in which the purchaser of a retirement and assisted living facility alleged that the seller had damaged the purchaser's interests by wrongfully selling lots within the same subdivision plan, an order of the district court affirming the order of the bankruptcy court granting the purchaser's motion for leave to sue the seller's Chapter 7 bankruptcy trustee in state court is affirmed, where: 1) under the doctrine established in Barton v. Barbour, 104 U.S. 126 (1881), leave of the bankruptcy court is required before instituting such an action; and 2) the bankruptcy court did not abuse its discretion in concluding that the purchaser had met its burden of establishing that its claims against the trustee were "not without foundation."

Appellate Information

• Decided 05/04/2012
• Published 05/04/2012

Judges

• Fisher

Court

• United States Third Circuit

Counsel

• For Appellant:
  
• Frank J. Lavery, Barry W. Sawtelle