Does the statute of limitations begin to run anew with the appointment of a Chapter 11 trustee?

MultiRegion, United States of America

The following excerpt is from IRFM, Inc., In re, 65 F.3d 778 (9th Cir. 1995):

In San Joaquin Roast Beef, a Chapter 11 trustee had been appointed and was subsequently replaced by a Chapter 7 trustee after the bankruptcy was converted. We held that "the most logical interpretation of section 546(a) is that the statute of limitations begins running from the date the first trustee is appointed and that all subsequent trustees are subject to the same statute of limitations." 7 F.3d at 1415. We therefore concluded that "[t]he statute of limitations began running on the date the Chapter 11 trustee was appointed." Id. at 1416. See also McCuskey v. Central Trailer Servs., Ltd., 37 F.3d 1329, 1332 (8th Cir.1994) ("[T]he two-year statute of limitations did not begin to run anew with the appointment of the chapter 7 trustee.").

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