Trahant v. Mintz (In re Roman Catholic Church of the Archdiocese of New Orleans)
- Summarized by David Treacy , U.S. Bankruptcy Court, Eastern District of Kentucky
- 5 days 16 hours ago
- Case Type:
- Business
- Case Status:
- Affirmed
- Citation:
- 25-30193 (5th Circuit, Feb 11,2026) Not Published
- Tag(s):
-
- Ruling:
- The U.S. Court of Appeals for the Fifth Circuit held that bankruptcy professionals are entitled to derivative judicial immunity when they act pursuant to and in accordance with a bankruptcy court's orders (i.e., “as an arm of the court”). In so doing, the circuit court affirmed the dismissal of claims at summary judgment against bankruptcy professionals related to the professionals' service of an order. Those claims arose from core bankruptcy matters properly addressed in the bankruptcy court.
- Procedural context:
- Appellants raised several issues on appeal (rulings from the bankruptcy and district courts) to the Fifth Circuit: "At the outset, we (A) discuss the motion to remand, because subject-matter jurisdiction is central to that analysis. Next, we (B) discuss whether the district court’s referral of this action to the bankruptcy court was appropriate and then (C) the denial of Plaintiffs’ motions to recuse and for disqualification. Last, we (D) discuss the grant of summary judgment in Defendants’ favor and, relatedly, the denial of Plaintiffs’ request for additional discovery." The Fifth Circuit explained the bankruptcy and district courts had proper subject matter jurisdiction over Appellants' state-law tort claims under 28 U.S.C. § 1334(b) as they were "core" to the bankruptcy case. They arose directly from the bankruptcy court's own order and were inseparable from the administration of the bankruptcy case. The district court's referral of the removed case to the bankruptcy court pursuant to a standing order of reference was proper because the claims arose from actions taken in compliance with a bankruptcy court order and implicated core bankruptcy matters. The bankruptcy judge's adverse rulings and familiarity with the main bankruptcy case did not establish bias or partiality warranting recusal. And because the challenged conduct derived from compliance with the bankruptcy court's instructions, and there were not material disputes of fact as to whether the challenged conduct exceeded the scope of the bankruptcy court's directives, the actors were entitled to derivative judicial immunity, warranting a summary judgment in their favor.
- Facts:
- In the chapter 11 bankruptcy case of the Roman Catholic Archdiocese of New Orleans, the U.S. Bankruptcy Court for the Eastern District of Louisiana entered an order (the "Trahant Order") finding that attorney/Appellant Richard Trahant violated a protective order, resulting in the removal of his clients from the committee of unsecured creditors. The bankruptcy court ordered debtor's counsel, Appellee Mark Mintz, and his law firm, Appellee Jones Walker LLP, and the debtor's service agent, Appellee Donlin, Recano & Co., Inc., to serve the Trahant Order on all parties in interest listed on the bankruptcy court's mailing matrix, rather than a more narrow service list. Appellant and his spouse, Appellant Amy Trahant, sued Appellees in Louisiana state court alleging state law torts based on the service of the Trahant Order. Appellants asserted service was improper because the mailing matrix included recipients who were not 'parties in interest' in the bankruptcy proceeding. Appellees removed the lawsuit to the U.S. District Court for the Eastern District of Louisiana, which referred the case to the bankruptcy court as a core proceeding. The bankruptcy court entered a summary judgment in favor of Appellees, holding they were entitled to derivative judicial immunity because they acted under and in accordance with the bankruptcy court's directives in serving the Trahant Order. On appeal, the district court affirmed, and Appellants took a further appeal to the Fifth Circuit.
- Judge(s):
- Haynes, Duncan, Ramirez
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