Fogel v. Shabat (In re Draiman)

Summarized by Mazyar Hedayat , M. Hedayat & Associates, PC
12 years 10 months ago

Citation:

Fogel v. Shabat, 12 A 00799 (Apr. 8, 2013)(Posner)

Tag(s):

Ruling:

The Bankruptcy Court erred in ruling than appointment of an Interim Trustee under 11 USC 701 extends the statute of limitations for avoidance actions under 702 and 546(a).

Procedural context:

Question Presented: Whether the Bankruptcy Court erred in ruling that the appointment of an Interim Trustee can extend the statute of limitations for avoidance actions (See 11 USC §546(a)).

Facts:

Defendants in adversary actions brought by Bankruptcy Trustee sought to appeal to the 7th Circuit directly from the Bankruptcy Court; which certified that said ruling involved a question of law as to which there was no controlling court of appeals or Supreme Court decision, per 28 USC §§158(d)(2)(A)(i), (B)(i). Debtor, Draiman, filed for Chapter 11 in 2009 and converted the case to one in Chapter 7 in 2011 - a day short of a full 2 years from the initial filing date. Interim Trustee Fogel was then appointed and, when no permanent trustee was elected a month and a half later, he became the permanent trustee and sought to bring certain avoidance actions. Creditors objected that he was out of time pursuant to 11 USC 701, 702, and 546(a)(1)(A).

Judge(s):

Posner, Ripple, Hamilton

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