IN RE MUSHROOM TRANSP. CO., INC.

No. 02-3754.

382 F.3d 325 (2004)

In re: MUSHROOM TRANSPORTATION COMPANY, INC., Debtor. Jeoffrey Burtch; Mushroom Transportation Co., Inc.; Penn York Realty Company, Inc.; Robbey Realty Inc.; Trux Enterprises; Teamsters Pension Trust Fund of Philadelphia; Charles J. Schaffer, Jr.; William J. Einhorn; Raymond A. Huber; Hubert C. Dietrich; Robert J. Ewanco; William D. Gross; Thomas R. Johnston; Joseph P. Santone; William J. Dillner, Jr.; James H. Hutchinson, Jr.; John P. O'Connor; Anthony R. Simones; Freight Drivers & Helpers Local 557 Pension Fund; Daniel L. Sandy v. Jonathan H. Ganz; Pincus Verlin Hahn & Reich, P.C.; Pincus Reich Hahn Dubroff & Ganz, P.C.; Modell Pincus Hahn & Reich, P.C.; Pincus Verlin Bluestein Hahn & Reich, P.C.; Astor Weiss & Newman; Rawle & Henderson; Continental Bank; Erwin L. Pincus; Richard L. Hahn; Pace Reich; Jerome J. Verlin; Andrew F. Napoli; Ronald Bluestein; Herman P. Weinberg; David N. Bressler; Allen B. Dubroff Jeoffrey Burtch, Trustee in Bankruptcy of Mushroom Transportation Company, Inc., successor to Robbey Realty, Inc., Penn York Realty Company, Inc., and Trux Enterprises, Inc. and successor to Michael Arnold, former trustee in bankruptcy, Mushroom Transportation Company, Inc., Robbey Realty, Inc., Penn York Realty Company, Inc., and Trux Enterprises, Inc., the Teamsters Pension Trust Fund of Philadelphia and Vicinity, Charles J. Schaffer, Jr., in his official capacity as a fiduciary, by his successor in office, William J. Einhorn, Raymond A. Huber, Herbert C. Dietrich, Robert J. Ewanco, William D. Gross, Thomas R. Johnston, Joseph P. Santone, William J. Dillner, Jr., James H. Hutchinson, Jr., John P. O'Connor and Anthony R. Simones, Trustees of the Western Pennsylvania, Teamsters and Employers Pension Fund or their successors, and Freight Drivers & Helpers Local 557 Pension Fund and Daniel L. Sandy, a fiduciary, or his successor and any other named or deemed plaintiff, substituted plaintiff (by virtue of his office) or other successor, Appellants.

United States Court of Appeals, Third Circuit.

Filed: August 24, 2004.


Attorney(s) appearing for the Case

Kent Cprek (Argued), Jennings Sigmond, The Penn Mutual Towers, Philadelphia, PA, for Appellants, Mushroom Transportation Co., Inc.; Penn York Realty Co., Inc.; Robbey Realty, Inc.; Jeoffrey L. Burtch; Trux Enterprises, Inc.; Freight Drivers & Helpers Local 557 Pension Fund; and Daniel L. Sandy.

Vincent P. Szeligo, Wick, Streiff, Meyer, Metz & O'Boyle, Pittsburgh, PA, for Appellants, William J. Einhorn; Raymond A. Huber; Hubert C. Dietrich; Robert J. Ewanco; William D. Gross; Thomas R. Johnston; Joseph P. Santone; William J. Dillner, Jr.; James H. Hutchinson, Jr.; John P. O'Connor; and Anthony R. Simoes.

Pace Reich (Argued), Elkins Park, PA, for Appellees, Pincus, Verlin, Hahn & Reich, P.C.; Pincus, Reich, Hahn, Dubroff & Ganz, P.C.; Pincus, Verlin, Bluestein, Hahn & Reich, P.C.; and Pace Reich.

Andrew F. Napoli, Hochberg, Napoli & Diamond, Philadelphia, PA, for Appellees, Pincus, Verlin, Hahn & Reich, P.C.; and Andrew F. Napoli.

Edward I. Swichar (Argued), Blank Rome, Philadelphia, PA, for Appellee, Continental Bank.

Laura S. Clare, Skadden, Arps, Slate, Meagher & Flom, Wilmington, DE, for Appellee Edwin L. Pincus.

Richard L. Hahn, Villanova, PA, for Appellee, Richard L. Hahn.

Arthur W. Lefco (Argued), Marshall, Dennehey, Warner, Coleman & Goggin, Philadelphia, PA, for Appellee, Jerome J. Verlin.

Ernest J. Bernabei, III (Argued), Harvey, Pennington, Cabot, Griffith & Renneisen, Philadelphia, PA, for Appellee, Herman P. Weinberg.

Allen B. Dubroff, Jaffe, Friedman, Schuman, Nemeroff, Applebaum & McCaffery, Elkins Park, PA, for Appellee, Allen B. Dubroff.

Before SCIRICA, Chief Judge, FISHER and ALARCÓN, Circuit Judges.


OPINION OF THE COURT

FISHER, Circuit Judge.

This appeal requires us to consider a bankruptcy debtor-in-possession's ability to invoke the discovery rule to toll the statutes of limitations on the debtor's claims arising out of its lawyer's embezzlement of estate funds. The bankruptcy and district courts here found that despite the lawyer's embezzlement and non-disclosure of such embezzlement to his client, the debtor...

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