In re Vasilacopulos
APPEAL
Unpublished
Bankruptcy trustee, through its attorneys, filed an adversary proceeding against third party defendants, seeking to recover allegedly fraudulent transfers. The attorneys subsequently discovered that other members of their law firm had previously represented defendants. The potential conflict of interest was immediately disclosed, and both trustee and the defendants waived any conflict. Debtor later moved for removal of the law firm that represented trustee, claiming conflict of interest. Debtor also filed a motion to remove the bankruptcy trustee, claiming that inadequate notice had been given of the conversion of debtor's involuntary bankruptcy from chapter 7 to chapter 11. Both of debtor's motions were denied by the bankruptcy court, and debtor appealed. The district court held that the bankruptcy court had properly denied both of debtor's motions.