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Opinion 43

Case Name: 

In re Curlew Valley Assocs., 14 B.R. 506 (Bankr.D.Utah)

Judge: 
Judge Mabey
Date: 
Oct-8-1981
Case Number(s): 
80-0876
Status: 

PUBLISHED

Body: 

Chapter 11 debtor, the owner and operator of a large farm, disagreed with trustee's decisions regarding farm operation, specifically, trustee's decision to bale hay instead of cubing it. On an emergency basis, the court denied debtor's request for an injunction, in which debtor asked the court to make its own determination regarding the hay dispute. The court held that, under 11 U.S.C. § 1108, the trustee has discretion to operate the debtor's business as a going concern, rather than to liquidate it. The court explained that the "[u]nless the court orders otherwise" language in § 1108, at most, allows the court to direct the trustee to discontinue an enterprise, and does not give the court power to impose conditions on trustee's management of the estate. The court also determined that policy reasons discouraged court supervision of the trustee, and concluded that it would not entertain objections to a trustee's management of an estate where trustee's conduct involved a business judgment made in good faith, that had a reasonable basis, and is within the scope of trustee's authority under the Code. The court also denied debtor's request to terminate trustee's appointment and restore it as debtor-in-possession, pursuant to 11 U.S.C. § 1105, finding that such relief was not warranted under either an "improvident appointment" or a "change in circumstances" test.

Internal Ref: 
Opinion 43
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