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Bankruptcy – Trustee in bankruptcy. The claimant former bankrupts brought a claim alleging that the defendant trustees had failed to do his job properly and that he had mismanaged their estates, thereby causing them loss and damage. The Chancery Division, in dismissing the claim, held that a surplus in the bankrupt's estate did not give rise to a duty in the tort of negligence on the trustee's part to the bankrupt. A trustee did not owe a bankrupt a duty at common law outside of s 304 of the Insolvency Act 1996 and, further, it was not part of the trustee's role to review the legitimacy of a judgment affecting a bankrupt, which directly or indirectly had been subject to appeals which had been rejected.
Bankruptcy – Trustee in bankruptcy. The claimant former bankrupts brought a claim alleging that the defendant trustees had failed to do his job properly and that he had mismanaged their estates, thereby causing them loss and damage. The Chancery Division, in dismissing the claim, held that a surplus in the bankrupt's estate did not give rise to a duty in the tort of negligence on the trustee's part to the bankrupt. A trustee did not owe a bankrupt a duty at common law outside of s 304 of the Insolvency Act 1996 and, further, it was not part of the trustee's role to review the legitimacy of a judgment affecting a bankrupt, which directly or indirectly had been subject to appeals which had been rejected.
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