In re Brownlee (Ch. 7 Case No. 17-70283, Adv. Case No. 19-07010)

This case concerned whether the one-year extension of the § 546(a) statute of limitations begins to run from the appointment of the interim trustee or upon concluding the § 341 meeting of creditors.  The court concluded that the appointment runs from concluding § 341 meeting when creditors decline or otherwise fail to elect a trustee.  This result, the court reasoned, is mandated by § 546(a)’s reference to appointment under § 702.  That section appoints the interim trustee as the “permanent” case trustee. Additionally, the court rejected the argument § 702 merely recognizes the interim trustee’s continued appointment if no trustee is elected, as § 701(b) explicitly terminates the appointment of the interim trustee upon concluding the § 341 meeting.

Tuesday, July 30, 2019