§ 959. — Trustees and receivers suable; management; State laws.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 28USC959]
TITLE 28--JUDICIARY AND JUDICIAL PROCEDURE
PART III--COURT OFFICERS AND EMPLOYEES
CHAPTER 57--GENERAL PROVISIONS APPLICABLE TO COURT OFFICERS AND
EMPLOYEES
Sec. 959. Trustees and receivers suable; management; State laws
(a) Trustees, receivers or managers of any property, including
debtors in possession, may be sued, without leave of the court
appointing them, with respect to any of their acts or transactions in
carrying on business connected with such property. Such actions shall be
subject to the general equity power of such court so far as the same may
be necessary to the ends of justice, but this shall not deprive a
litigant of his right to trial by jury.
(b) Except as provided in section 1166 of title 11, a trustee,
receiver or manager appointed in any cause pending in any court of the
United States, including a debtor in possession, shall manage and
operate the property in his possession as such trustee, receiver or
manager according to the requirements of the valid laws of the State in
which such property is situated, in the same manner that the owner or
possessor thereof would be bound to do if in possession thereof.
(June 25, 1948, ch. 646, 62 Stat. 926; Pub. L. 95-598, title II,
Sec. 235, Nov. 6, 1978, 92 Stat. 2667.)
Historical and Revision Notes
Based on title 28, U.S.C., 1940 ed., Secs. 124, 125 (Mar. 3, 1911,
ch. 231, Secs. 65, 66, 36 Stat. 1104).
Section consolidates part of section 124 of title 28, U.S.C., 1940
ed., with section 125 of the same title. The criminal penalty for
violation of said section 124 is incorporated in section 1911 of Title
18, Crimes and Criminal Procedure.
Section was extended and made applicable to trustees and debtors in
possession. The provision at the end of subsection (a) for preserving
the right to a jury trial was added to clarify the intent of section 125
of title 28, U.S.C., 1940 ed., as construed in Vany v. Receiver of
Toledo, St. L. and K.C. R.R. Co., C.C. 1895, 67 F. 379.
Changes in phraseology were made.
Amendments
1978--Subsec. (b). Pub. L. 95-598 substituted ``Except as provided
in section 1166 of title 11, a trustee'' for ``A trustee''.
Effective Date of 1978 Amendment
Amendment by Pub. L. 95-598 effective Oct. 1, 1979, see section
402(c) of Pub. L. 95-598, set out as an Effective Date note preceding
section 101 of Title 11, Bankruptcy.
Section Referred to in Other Sections
This section is referred to in section 754 of this title.
