Milby v. Templeton (In Re Milby)

OPINION

BYBEE, Circuit Judge:

The bankruptcy estate of Debtor Charlene Milby discovered allegedly fraudulent transfers days before the statute of limitations on avoidance claims was set to expire. This action was not filed until almost a year later. The bankruptcy court dismissed the action as time barred and held that the estate’s delay in filing after discovering the transfers precluded equitable tolling. The Bankruptcy Appellate Panel (“BAP”) reversed, holding that such post-discovery delay is irrelevant to whether equitable tolling applies.

Neither court correctly applied our law on…