Richards Layton & Finger

Equitable Tolling Applied to Adversary Proceeding Limitation

November 13, 2012

In Liberty Brands, LLC v. Feit, the Delaware Bankruptcy Court denied the defendants’ motions to dismiss the plaintiff-trustee’s claims to recover unauthorized post-petition transfers under 11 U.S.C. § 549. According to the defendants, the trustee’s claims were time-barred because the trustee did not file within two years after the date of the transfer at issue. The court denied the defendants’ motions to dismiss after concluding that the doctrine of equitable tolling applied to extend the limitations period under Section 549(d)(1).

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