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Expansion of the <i>Barton</i> Doctrine To Unsecured Creditors' Committees
The U.S. Court of Appeals for the Ninth Circuit recently held in Blixseth v. Brown (In re Yellowstone Mountain Club, LLC), 841 F.3d 1090 (9th Cir. 2016), that under Barton v. Barbour, 104 U.S. 126 (1881), a plaintiff must obtain a bankruptcy court's permission before commencing a lawsuit in another forum against a member of the committee of unsecured creditors, and that Stern v. Marshall, 564 U.S. 462 (2011) does not preclude bankruptcy courts from adjudicating such claims on the merits.
The Barton Doctrine
“'The Barton Doctrine, developed from common law by the Supreme Court, provides that a suit may not be brought against a receiver without leave of such receiver's appointing court.'” MF Global Holdings Ltd. v. Allied World Assurance Company Ltd. (In re MF Global Holdings, Ltd.), 562 B.R. 866 (Bankr. S.D.N.Y. 2017) (quoting McIntire v. China MediaExpress Holdings, Inc., 113 F.Supp.3d 769, 772 (S.D.N.Y. 2015) (citing Barton v. Barbour, 104 U.S. 126, 136-37 (1881)). Generally, the Barton doctrine has been applied to bar claims against receivers and bankruptcy trustees acting in their official capacities as officers of the court. Blixseth v. Brown (In re Yellowstone Mountain Club, LLC), 841 F.3d 1090, 1094 (9th Cir. 2016) (citing In re Crown Vantage, Inc., 421 F.3d 963, 970-71 (9th Cir. 2005)).
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