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Trustees Fiduciary Duties

The Chapter 7 trustee owes a fiduciary duty to each creditor of the debtor. [Germain v. Connecticut Nat’l Bank (2nd Cir. 1993) 988 F2d 1323, 1330, fn. 8—Chapter 7 trustee owes fiduciary duty both to debtor and to creditors as a group; Matter of Troy Dodson Const. Co., Inc. (5th Cir. 1993) 993 F2d 1211, 1216–1217; Official Committee of Unsecured Creditors of Grand Eagle Cos., Inc. v. ASEA Brown Boveri, Inc. (ND OH 2004) 313 BR 219, 224]

Must treat all creditors fairly: The Chapter 7 trustee “has a duty to treat all creditors fairly and to exercise that measure of care and diligence that an ordinarily prudent person under similar circumstances would exercise.” [In re Cochise College Park, Inc. (9th Cir. 1983) 703 F2d 1339, 1357]

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