PRIA Logo™
Title 28, Judiciary and Judicial ProcedureRelease 119-102

§959 Trustees and Receivers Suable; Management; State Laws

Title 28 › PART III — COURT OFFICERS AND EMPLOYEES › CHAPTER 57 — GENERAL PROVISIONS APPLICABLE TO COURT OFFICERS AND EMPLOYEES › § 959

Last updated Aug 21, 2026|Official source

Summary

Trustees, receivers, and managers of property, including debtors in possession, can be sued for their business actions without first asking the court that put them in charge. Those suits can be handled using the court’s fairness powers when needed, but people still keep the right to a jury trial. Except as provided in section 1166 of title 11, these trustees, receivers, and managers must run the property under the valid laws of the State where the property is located, just like an owner would.

Full Legal Text

Title 28, §959

Judiciary and Judicial Procedure, Source: USLM XML via OLRC

(a)Trustees, receivers or managers of any property, including debtors in possession, may be sued, without leave of the court appointing them, with respect to any of their acts or transactions in carrying on business connected with such property. Such actions shall be subject to the general equity power of such court so far as the same may be necessary to the ends of justice, but this shall not deprive a litigant of his right to trial by jury.
(b)Except as provided in section 1166 of title 11, a trustee, receiver or manager appointed in any cause pending in any court of the United States, including a debtor in possession, shall manage and operate the property in his possession as such trustee, receiver or manager according to the requirements of the valid laws of the State in which such property is situated, in the same manner that the owner or possessor thereof would be bound to do if in possession thereof.

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

Based on title 28, U.S.C., 1940 ed., §§ 124, 125 (Mar. 3, 1911, ch. 231, §§ 65, 66, 36 Stat. 1104). Section consolidates part of section 124 of title 28, U.S.C., 1940 ed., with section 125 of the same title. The criminal penalty for violation of said section 124 is incorporated in section 1911 of Title 18, Crimes and Criminal Procedure. Section was extended and made applicable to trustees and debtors in possession. The provision at the end of subsection (a) for preserving the right to a jury trial was added to clarify the intent of section 125 of title 28, U.S.C., 1940 ed., as construed in Vany v. Receiver of Toledo, St. L. and K.C. R.R. Co., C.C. 1895, 67 F. 379. Changes in phraseology were made.

Editorial Notes

Amendments

1978—Subsec. (b). Pub. L. 95–598 substituted “Except as provided in section 1166 of title 11, a trustee” for “A trustee”.

Statutory Notes and Related Subsidiaries

Effective Date

of 1978 AmendmentAmendment by Pub. L. 95–598 effective Oct. 1, 1979, see section 402(c) of Pub. L. 95–598, set out as an

Effective Date

note preceding section 101 of Title 11, Bankruptcy.

Reference

Citations & Metadata

Citation

28 U.S.C. § 959

Title 28, Judiciary and Judicial Procedure

Last Updated

Aug 21, 2026

Release point: 119-102