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UNITED STATES, ETC. v. SAPP

No. 80-1123.

641 F.2d 182 (1981)

UNITED STATES for the Use and Benefit of JULIEN P. BENJAMIN EQUIPMENT COMPANY, Plaintiff, and Julien P. Benjamin Equipment Company, Appellant, v. Newell W. SAPP, Individually and as Chap. X Trustee for Southern Foundation, Inc., and the American Insurance Company, Appellees, v. Charles F. HOWELL, W. Fred Williams, Jr., William F. Smalley and R. Dale Wood, Third Party Defendants. In re SOUTHERN FOUNDATION CORPORATION, Bankrupt.

United States Court of Appeals, Fourth Circuit.

Decided February 17, 1981.

Attorney(s) appearing for the Case

David F. Meschan, Greensboro, N. C. (Edward V. Zotian, Tuggle, Duggins, Meschan, Thornton & Elrod, P. A., Greensboro, N. C., on brief), for appellant.

William F. Horsley, Reidsville, N. C. (Griffin, Post, Deaton & Horsley, Reidsville, N. C., on brief), for appellee.

Before RUSSELL, WIDENER and ERVIN, Circuit Judges.

PER CURIAM:

The question presented by this appeal is whether a trustee in reorganization under Chapter X1 can be held personally liable on his bond for negligent failure to pay a claim for services furnished the debtor in reorganization in the course of continuing the debtor's business under court order. The Bankruptcy Judge held that he could not be so held. On appeal, the District Judge, after expressing doubt on the basis of his personal...

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