Section 324 Removal of Trustee or Examiner.
In re Tres-Ark, Inc. (November 21, 2012)
Issue: Did Chapter 7 Trustee's dismissal of state court counterclaims with prejudice, along with the Trustee's alleged acrimonious relationship with Debtor's largest shareholders, warrant the Trustee's removal under 324?
Holding: The party seeking to remove a trustee has the burden of proof by a preponderance of the evidence that removal is in the best interest of the estate. Here, movants did not meet their burden of establishing that an acrimonious relationship warranted removal of the Trustee from this case. Further, the Trustee provided evidence that his dismissal of state court claims with prejudice was in the best interest of the estate, and the fact that the movants did not agree with the Trustee did not constitute cause for removal. Motion to Remove Trustee denied.