The U.S. Court of Appeals for the Fifth Circuit upheld the removal of W. Steve Smith, a former shareholder in Houston’s McFall Breitbeil & Smith, as a Chapter 7 trustee for multiple pending bankruptcy cases.
A lower court ordered to have Smith removed from the cases, basing that ruling in part on allegations that in one case, Smith traveled for oral arguments in 2011 to New Orleans with his wife, who served as his appellate counsel, and his two children. The family arrived three days early, stayed one night afterwards, and then Smith submitted an unitemized bill that included a request to distribute $3,486 in estate funds to his firm for the trip costs.
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