Janvey v. Democratic Sentatorial Campaign Committee, Inc. (Standing under the UFTA, Statute of Limitations)

Janvey v. Democratic Sentatorial Campaign Committee, Inc., — F.3d — (5th Cir. 2012), 2012 WL 5207460 (Oct. 23 2012) is another in the line of cases holding that Receivers have standing to represent creditors in UFTA claims, this time in the Fifth Circuit. In addition to finding that Receivers may stand in the shoes of creditors in UFTA claims, the Court discussed the UFTA’s discovery rule, which tolls the accrual of the cause of action until after the fraud could be reasonably discovered for purposes of the one year limitations period. Regarding this issue, the Court stated that the date of reasonable discovery is the date of reasonable discovery by the Receiver. Providing further clarification, the Court indicated that the date of reasonable discovery may be after the date of the Receiver’s appointment, as it may not be reasonable for the Receiver to have discovered the fraud right away. The Court stated that in this instance “[g]iven the extent of… the receiver’s duties… and the extent of the fraudulent transfers, it would not have been reasonable to expect [the Receiver] to immediately discover the fraud.”