Styler v. Conoco, Inc. (In re Peterson Distrib., Inc.), 176 B.R. 584 (Bankr.D.Utah)
PUBLISHED
The defendants in three adversary proceedings filed by the chapter 7 trustee filed motions to dismiss on grounds that the 11 U.S.C. § 546(a) two-year statute of limitations had run. Debtor had filed a voluntary chapter 11 on June 28, 1991, and no trustee was appointed under 11 U.S.C. § 1104(a). On July 22, 1992, as debtor-in-possession had failed to progress toward confirmation of a reorganization plan, the court converted the case to chapter 7. An interim trustee was appointed on July 16, 1992. On August 17, 1992, as no trustee was elected under 11 U.S.C. § 702(b) and (c), the interim trustee became the permanent trustee, as provided by § 702(d). The defendants asserted that the statute of limitations began to run: 1) when the chapter 11 petition was filed; 2) when the chapter 7 interim trustee was appointed; or 3) when counsel for the interim trustee was approved. The court held that, under the plain language of § 546(a), the applicable date from which the statute of limitations begins to run is the date the permanent chapter 7 trustee begins to serve. In this case, that date was August 17, 1992. Therefore, on August 16, 1994, when trustee filed the three complaints seeking to avoid 11 U.S.C. § 547 transfers, the two-year statute of limitations had not yet run, and the court denied defendants' motion to dismiss the adversary proceedings.