Issue link: https://mbozikis.ufcontent.com/i/1422521
193 (x) to provide notice to any claimants for domestic support obligations of the right to use the services of the State child support enforcement agency; (xi) to continue to perform any obligations of the debtor as the administrator of an employee benefit plan; and (xii) to use all reasonable and best efforts to transfer patients from a health care business that is in the process of being closed. As a general matter, a trustee enjoys immunity from liability for actions taken by it within the scope of its official duties. See In re Mailman Steam Carpet Cleaning Corp., 196 F.3d 1, 7 n.4 (1st Cir. 1999), cert. denied, 530 U.S. 1230 (2000). Such immunity does not extend, however, to breaches of fiduciary duties or acts of gross negligence or willful misconduct committed by a trustee in fulfilling its duties. See id. at 7 n.4; In re Smyth, 207 F.3d 758, 762 (5th Cir. 2000); In re Weiss, 111 F.3d 1159, 1168–69 (4th Cir. 1997), cert. denied, 522 U.S. 950 (1997). C. Collection, Liquidation and Distribution of the Estate Although the main purpose of a Chapter 7 proceeding is to dispose of the debtor's property and to distribute the proceeds collected to the debtor's creditors as swiftly as possible, this does not mean that the trustee is required to instantly shut down the debtor's operations. In fact, Section 721 of the Bankruptcy Code specifically provides that a trustee is authorized to operate the debtor's business for a limited period of time "if such operation is in the best interest of the estate and consistent with the orderly liquidation of the estate." 110 Any operation of the debtor's business by the trustee, however, must comply with both applicable State law and Federal, State and local tax law. 28 U.S.C. §§ 959(b), 960(a). Furthermore, a trustee can be sued in connection with its actions in "carrying on business" connected 110 For a discussion of the principles governing operation of a debtor's business in bankruptcy, see Chapter VI.C. above.