The receiver in charge of handling Salyer American Fresh Foods’s assets will remain in place.

Monterey County Superior Court Judge Susan Dauphine ruled against a request by Salyer American, Monterey, Calif., to replace Steve Franson. Salyer American’s attorney, Donald Putterman, contended Franson failed to act impartially and overstepped his authority by closing the company down in May and laying off more than 1,000 employees.

Franson took over Salyer American’s operations in May after Bank of the West and two other creditors filed suit claiming the company didn’t pay back $35 million in loans.

In her July 27 ruling, Dauphine said based on evidence presented in court, “it doesn’t appear” that Franson “acted in bad faith” and there isn’t sufficient evidence to remove Franson from his post.

Franson is expected to complete his duties as receiver in coming weeks.

Salyer American receiver keeps job