In Re Soundview Elite Ltd. (Fletcher v. Ball), 646 F. App'x 1

Appellant Alphonse Fletcher, Jr., pro se, moved to remove Chapter 11 trustee Corinne Ball in the Soundview Elite bankruptcy, alleging undisclosed conflicts and fraud by her law firm, Jones Day.
Trustee disclosed before appointment that Jones Day may have represented or continue to represent parties adverse to the debtors but would not do so in matters related to the debtors' Chapter 11 cases.
Bankruptcy court denied Fletcher’s motion to remove the trustee under 11 U.S.C. § 324(a).
District court affirmed the bankruptcy court’s order and denied Fletcher’s motion for reconsideration.
Fletcher appealed to the Second Circuit, which reviewed legal conclusions de novo and factual findings for clear error; denial of trustee-removal under § 324(a) reviewed for abuse of discretion.

Issue	Plaintiff's Argument (Fletcher)	Defendant's Argument (Ball/Trustee)	Held
Whether trustee should be removed under 11 U.S.C. § 324(a) for conflicts/fraud	Trustee (via Jones Day) had undisclosed conflicts and committed fraud by failing to disclose adverse representations	Trustee disclosed potential adverse representations and promised not to represent parties in matters related to the debtors; no specific undisclosed, current conflict or actual injury alleged	Denied — no showing of fraud or actual injury; disclosure and promise to avoid debtor matters sufficient; bankruptcy court did not abuse its discretion

In re Cacioli, 463 F.3d 229 (2d Cir. 2006) (standard of appellate review in bankruptcy matters)
In re First Cent. Fin. Corp., 377 F.3d 209 (2d Cir. 2004) (appellate review of bankruptcy court findings)
In re Eloise Curtis, Inc., 326 F.2d 698 (2d Cir. 1964) (standard for reviewing trustee-removal under § 324(a))
In re Highgate Equities, Ltd., 279 F.3d 148 (2d Cir. 2002) (abuse-of-discretion framework)
In re Freeport Italian Bakery, Inc., 340 F.2d 50 (2d Cir. 1965) (trustee-removal requires fraud or actual injury; formal relationships insufficient)