3rd Circuit: Barton Doctrine Valid; Bankruptcy Court Right To Allow Lawsuit

3rd Circuit: Barton Doctrine Valid; Bankruptcy Court Right To Allow Lawsuit

PHILADELPHIA - A panel of the Third Circuit U.S. Court of Appeals on May 4 ruled that the Barton doctrine applied to Chapter 7 bankruptcy cases and held that a bankruptcy court properly determined that an interested party could proceed with a state court lawsuit against the trustee based on an agreement to sell certain properties that were part of the bankruptcy estate (In Re: VistaCare Group LLC,  No. 11-2695, Chapter 7, 3rd Cir.; 2012 U.S. App. LEXIS 9147).

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