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Two Cases Emphasize Distinct Approaches to Trustee Discretion

Trustees, like debtors-in-possession, owe a fiduciary duty to their constituents, but are protected by the business judgment rule. Two recent cases illustrate how a trustee’s discretion can be exercised depending upon which rule is given primacy. In In re Tres-Ark,Inc., No. 09-12589 (Bankr. W.D. Tex. 11/21/12), which can be found here, the Bankruptcy Court...