DISCLAIMER: The following unofficial case summaries are prepared by the clerk's office
as a courtesy to the reader. They are not part of the opinion of the court.
071821P.pdf 08/29/2008 PW Enterprises v. North Dakota Racing Commission
U.S. Court of Appeals Case No: 07-1821
Appeal from the Bankruptcy Appellate Panel for the Eighth Circuit
[PUBLISHED] [Bright, Author, with Wollman and Smith, Circuit Judges]
Civil case - Bankruptcy. Creditor or creditor's committee may obtain
derivative standing to pursue avoidance actions under circumstances in
which the trustee or debtor-in-possession either justifiably refuses to
bring the creditor's proposed claims or consents to the creditor pursuing
such claims in his stead; bankruptcy court may retroactively grant a
creditor derivative standing; under no circumstances, however, may a
creditor prosecute its derivative complaint without the bankruptcy court's
permission; in this case, the bankruptcy court, in the first instance,
should decide whether PW Enterprises should be granted retroactive
standing to proceed derivatively; case reversed and remanded for further
proceedings.