28 U.S.C. § 959
Section 959 · Trustees and receivers suable; management; State laws
Amended 2 times on record
Applied in 448 court decisions — leading case Midlantic National Bank v. New Jersey Department of Environmental Protection (1986)
Most recently applied in State of Mississippi v. JXN Water (April 2025)
Cases citing this section usually also cite 11 U.S.C. § 362 · 28 U.S.C. § 1334 · 28 U.S.C. § 157
How often courts cite this section
Court decisions citing this, by year.Markers show enactment, consequential amendments, and circuit splits over this section — watch for a citation surge after a change or a disagreement. The dip in the last several years is a data-coverage gap, not a real trend — our corpus holds fewer opinions from the most recent years, so recent citations are undercounted.
(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.
Editorial notes U.S. Code · Office of the Law Revision Counsel
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.
Amendments
1978—Subsec. (b). Pub. L. 95–598 substituted “Except as provided in section 1166 of title 11, a trustee” for “A trustee”.
Effective Date of 1978 Amendment
Amendment 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.
Federal Rules of Civil Procedure
Capacity to sue or be sued, see rule 17, Appendix to this title.
Cross References
Mismanagement of property by receiver, criminal penalty, see section 1911 of Title 18, Crimes and Criminal Procedure.
Process and orders affecting property in different districts, see section 1692 of this title.
Receivers of property in different districts, jurisdiction, see section 754 of this title.