Richard A. Balser Corinne L. Balser v. Department of Justice, Office of the United States Trustee

This appeal presents the question, inter alia, as to whether sovereign immunity bars a suit filed against a United States trustee acting in his official capacity based on acts conducted within the course and scope of his employment. We hold that it does and affirm the district court.

I

The bankruptcy proceedings were initiated as three involuntary Chapter 7 petitions filed by Carillon Gardens Associates, LLC (“Carillon”) against Homewood Development, Inc., Richard A. Balser, and Corinne L. Balser (collectively, “the debtors”). Eventually, the three petitions were administratively consolidated and converted to a Chapter 11 bankruptcy. The debtors thereafter acted as debtors-in-possession. Carillon moved for the appointment of an examiner in the case pursuant to 11 U.S.C. § 1104 . The debtors stipulated to the appointment, and the bankruptcy court entered an order authorizing the United States trustee to appoint an examiner with expanded powers pursuant to 11 U.S.C. § 1104 (c), including the power and duty to manage the debtors’ rental properties and a power concurrent with the debtor to seek approval of sale of the properties subject to Carillon’s secured claims. The…