William Bender V.

MEMORANDUM

I

In No. 11-60007, Congrejo Investments, LLC challenges the bankruptcy court’s order avoiding the transfer of property from William P. Bender, Debtor, to Congrejo. The Trustee filed a motion to dismiss this appeal as moot because the property at issue has now been sold to a purchaser in good faith.

We deny the motion to dismiss. Though the sale of the property cannot be undone because no stay order was sought, see 11 U.S.C. § 363 (m), relief could still be awarded in the form of damages, see, e.g., In re Berg, 45 B.R. 899, 902 (B.A.P. 9th Cir.1984), assuming that the estate contains additional property, see In re Filtercorp, Inc., 163 F.3d 570 , 577-78 (9th Cir.1998).

On the merits, the bankruptcy court properly applied equitable tolling to the Trustee’s avoidance action. The court found that Bender actively concealed his interest in and conveyance of the property, that the Trustee did not discover the conveyance until five months after the deed was executed, and that the Trustee diligently investigated the estate’s possible claim to the property. These findings are supported by the record and are not clearly erroneous. Applying equitable tolling in these…