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IN RE CNC PAYROLL, INC.

No. 12-33012.

491 B.R. 454 (2013)

In re CNC PAYROLL, INC., Debtor(s).

United States Bankruptcy Court, S.D. Texas, Houston Division.

May 1, 2013.

Attorney(s) appearing for the Case

Ellen Maresh Hickman, Office of the U.S. Trustee, Houston, TX, U.S. Trustee.

Patrick L Hughes, Haynes & Boone LLP, W. Steve Smith, ECF Account #2 as Trustee, McFall Breitbeil & Smith, PC, Houston, TX, for W. Steve Smith, McFall, Breitbeil & Smith, PC, Trustee.

Elizabeth Anne Medley, Cage, Hill & Niehaus, Houston, TX, for Debtor.

MEMORANDUM OPINION

MARVIN ISGUR, Bankruptcy Judge.

The Court must determine whether W. Steve Smith must be removed as the chapter 7 trustee in this case. Because the Court has determined that there is not clear and convincing evidence1 that Smith breached his fiduciary duty to the Estate, the Court will not order his removal.

When Smith determined that the Estate should retain counsel, he sought to retain a law...

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