Trustee ordered to pay me $98,000 Surcharge found inappropriately paying $98000 to IRS , can I sue Trustee for damages?

Asked over 1 year ago - Bridgewater, NJ

I am a pro-se , in a chapter 7 matter, Trustee paid $98,000 interest and penalties to IRS, I filed a Motion, after a long trail by the CPA hired by Trustee, I won, Trustee ordered to pay me $98,000 as Surcharge and found to make mistake by the Bankruptcy Court, Trustee appealed the order in District Court, District Court Upheld and Affirmed the order of Bankruptcy Court, Trustee than pays me $98,000 . Should I now sue for damages?

Attorney answers (4)

  1. Robert Andrew Loefflad

    Contributor Level 3


    Lawyer agrees

    Answered . For those lawyers who are a little confused by the question posed, the case is unreported, but can be found at 2010 U.S. Dist. LEXIS 128988. Other than that, I have nothing to add to what my colleagues have stated.

  2. Leonard Roy Boyer


    Contributor Level 16

    Answered . First of all a trustee has immunity for actions taken, acting in his or her capacity as a trustee.
    Second, you were made whole, what are your damages?
    Third, your facts do not sound right. A Court can Order you to pay something, and a trustee acting in his official capacity can pay something, but a Trustee does not issue orders. I agree with the answers of my colleagues.

    Without meeting with you, and knowing all the facts and circumstances of your case, my opinion is not to be... more
  3. Walter C Oney Jr

    Contributor Level 17


    Lawyer agrees

    Answered . Trustees have immunity for actions they take as trustee. You will lose and have to pay whatever it costs the trustee to defend.

  4. Gary D. Bollinger

    Contributor Level 19


    Lawyer agrees

    Answered . If the Trustee pays you, then I do not see what damages you might assert that would be recoverable in an action at law or in equity.

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