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*This outline is adapted from Chapter 27, Ethical Responsibilities,
Norton Bankruptcy Law & Practice 2d (Thomson-West 2005)
1999)(use of estate assets for personal expenses); In re General Homes Corp., 199 B.R. 148 (S.D. Tex. 1996)(directors substantially increased their own compensation just before order for relief); In re Microwave Products of America, Inc., 102 B.R. 666 (Bankr. W.D. Tenn. 1989); In re Colby Construction Corp., 51 B.R. 113 (Bankr. S.D.N.Y. 1985)(breach of fiduciary duties through undocumented loans to insiders); see cases cited in In re Schipper, 109 B.R. 832, 835 (Bankr. N.D. Ill. 1989), aff'd., 112 B.R. 917
(N.D. Ill. 1990); aff'd., 933 F.2d 513 (7th Cir. 1991); see also 18 U.S.C. § 154 prohibiting trustee or other officer of the court from purchasing estate assets, and In re Q.P.S., Inc., 99 B.R. 843 (Bankr. W.D. Tenn. 1989)(DIP's accountant prohibited from buying estate car); In re Exennium, 23 B.R. 782 (9th Cir. BAP 1982), rev'd. on other grounds 715 F.2d 1401 (9th Cir. 1993)(former DIP counsel barred from purchasing lease from trustee after conversion).
34In re McConville, 110 F.3d 47 (9th Cir. 1997)(breach of fiduciary duty to obtain postpetition secured financing without §364 court authorization); In re Four Seasons Marine & Cycle, Inc., 263 B.R. 764 (Bankr. E.D. Tex. 2001)(cash collateral restrictions); In re Honey Creek Entertainment, Inc., 246 B.R. 671 (Bankr. E.D. Okla. 2000)(postpetititon non-ordinary course transfers without court authorization); In re 239 Worth Ave. Corp., 236 B.R. 492 (Bankr. S.D. Fla. 1999)(payment of prepetition debt and obtaining postpetition financing without court orders); In re Urbanco, Inc., 122 B.R. 513 (Bankr. W.D. Mich. 1991); In re Wells, 71 B.R. 554 (Bankr. N.D. Ohio 1987).
35In re Western World Funding, Inc., 52 B.R. 743 (Bankr. D. Nev. 1985) aff'd. in relevant part 985 F.2d 1021 (9th Cir. 1993).
36In re Four Score Broadcasting, Inc., 77 B.R. 404 (Bankr. W.D.N.Y. 1987); In re Roblin Industries, Inc., 52 B.R. 241 (Bankr. W.D.N.Y. 1985); See In re Cochise College Park, Inc., 703 F.2d 1339 (9th Cir. 1983)(applying standard to bankruptcy trustee).
37See RESTATEMENT (SECOND) OF TRUSTS § 183 (1959).
38Case, Fiduciary Duty of Corporate Directors and Officers, Resolution of Conflicts Between Credi
tors and Shareholders, and Removal of Directors by Dissident Shareholders in Chapter 11 Cases, Materials of the Williamsburg Bankruptcy Conference on Bankruptcy 373 (ALI-ABA 1988)(hereafter "Case").
39CFTC v. Weintraub, 471 U.S. at 356; Pepper v. Litton, 308 U.S. 295, 306 (1939); In re Bellevue
Place Associates, 171 B.R. 615 (Bankr. N.D. Ill. 1994) (DIP cannot surrender control over decisions to single creditor, but must be fair to all). 40Case at 383. 41See In re Kendavis Industries International, Inc., 91 B.R. 742 (Bankr. N.D. Tex. 1988); In re Marathon Home Loans, 101 B.R. 216 (Bankr. E.D. Cal. 1989); In re Downtown Investment Club III, 89
B.R. 59 (9th Cir. BAP 1988). 42In re Central Ice Cream Co., 836 F.2d 1068 (7th Cir. 1987); In re Lionel Corp., 722 F.2d 1063 (2d
Cir. 1983); In re Bush Industries, Inc., 315 B.R. 292 (Bankr. W.D.N.Y. 2004); In re Water's Edge Ltd. Partnership, 251 B.R. 1 (Bankr. D. Mass. 2000); In re Philadelphia Athletic Club, Inc., 15 B.R. 60 (Bankr.
E.D. Pa. 1981). 43In re Entertainment, Inc., 225 B.R. 412 (Bankr. N.D. Ill. 1998)(cannot pursue plan for one faction
against competing faction's plan). 44In re R&R Associates of Hampton, 402 F.3d 257 (1st Cir. 2005); In re Coram Healthcare Corp., 271
