Equitable Tolling Applied to Adversary Proceeding Limitation
November 13, 2012
Publication| Bankruptcy & Corporate Restructuring
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).