Galam

MEMORANDUM *

Michael A. Galam appeals the district court’s order which affirmed the bankruptcy court’s order imposing a constructive trust against him. The order in favor of the estate was obtained by N.D. Duco Corporation, Larry Jarnigan and Linda Jarnigan (collectively NDDC) and Michael W. Carmel, trustee for the bankruptcy estate of Larry’s Apartment, L.L.C. (the Debtor). Galam asserts that-the order was improper. We affirm.

(1) Galam maintains that the bankruptcy comt erred when it permitted NDDC to participate in the adversary proceeding. We disagree.

It is true that the general rule is that only the bankruptcy trustee can initiate and pmsue bankruptcy adversary proceedings on behalf of the estate. 11 U.S.C. *709 § 323 ; see also Tilley v. Vucurevich (In re Pecan Groves of Ariz.), 951 F.2d 242, 244-45 (9th Cir.1991). However, that is far from saying that the bankruptcy court could not grant NDDC permission to participate in the adversary proceeding on a limited basis, which greatly benefítted the estate. The Trustee was left in full control; the court did not err. In any event, the parties do not dispute that the Trustee could pursue the matter; Galam has no basis to…