Source: https://supreme.justia.com/cases/federal/us/317/144/
Timestamp: 2019-04-22 08:05:47+00:00

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Justia › US Law › US Case Law › US Supreme Court › Volume 317 › Pfister v. Northern Illinois Finance Corp.
Pfister v. Northern Illinois Finance Corp.
1. The time within which a petition may be filed to review an order of a conciliation commissioner fixing rental or granting stay or directing sale is governed by § 39(c) of the Bankruptcy Act, and is fixed at ten days after the entry of the order "or within such extended time as the court may for cause shown allow." P. 317 U. S. 147.
2. The ten-day period for filing a petition to review a commissioner's order under § 39(c) is not extended by a petition for rehearing which is denied by the commissioner without reexamination of the basis of the original order. P. 317 U. S. 150.
3. The ten-day period prescribed by § 39(c) is a limitation on the right of the aggrieved party to appeal, but not a limitation on the jurisdiction of the reviewing court to act. The District Court, in the exercise of sound discretion, can review orders on petitions to review filed after the ten-day period has run. P. 317 U. S. 152.
4. In this case, the commissioner entertained out-of-time petitions to rehear orders fixing rental, granting stay, and directing sale, and denied the petitions upon the ground that they were inadequate to induce a reexamination of the merits of the orders they sought to reopen. Held, on the facts of this case, that the District Court did not err in refusing an out-of-time review of the merits of the original orders. P. 317 U. S. 153.
Certiorari, 315 U.S. 795, to review a judgment of the Circuit Court of Appeals which affirmed orders of the District Court en banc dismissing, for want of jurisdiction, petitions to review orders of a conciliation commissioner.
This certiorari, 315 U.S. 795, brings here certain rulings on the right of petitioner, a farmer debtor, to have reviewed the orders of a conciliation commissioner [Footnote 1] under Section 75 of the Bankruptcy Act. This section deals with Agricultural Compositions and Extensions. A conflict of circuits as to whether the ten-day period for filing a petition for review of a commissioner's order was a limitation on the power of the reviewing court to act or on the right of an aggrieved party to appeal [Footnote 2] impelled us to grant our writ. In re Pfister, 123 F.2d 543, 548; Thummess v. Von Hoffman, 109 F.2d 291, and In re Albert, 122 F.2d 393.
petitions for rehearing of a conciliation commissioner's orders, which petitions were entertained and denied, were not held to extend the period for review; and (3) because the order of stay approved by the Commissioner under 75(s)(2) was for less than the statutory period of three years from the entry of the stay order.
rental, granting stay, and directing sale were filed with the Commissioner. The basis of these petitions and the reasons for their denial by the Commissioner are detailed in 317 U. S.
Petitions for review were filed which were timely if petitioner was right in his contention that the Commissioner's action on the petitions for rehearing extended the time for appeal for ten days from the entry of the Commissioner's order denying rehearing. The two numbers, 26 and 27, of our docket refer to these two petitions for review consolidated for hearing. The District Court denied each of the petitions for review on the ground that there was no jurisdiction in it to review, since the petitions for review were filed after the ten days provided by 39(c) and the rules of the District Court, and since the denial of the petitions for rehearing did not extend the time. The Court of Appeals affirmed the judgment on the grounds that 39(c) governed, that the time for review was not extended by the petitions for rehearing, that there was no basis for reversing the Commissioner's action on the petitions for review, and that the "petitions for review were not filed in time." We disagree with the Court of Appeals upon the last ground, on the assumption that the language meant that the District Court was without "power" to review the orders. We agree with the Court of Appeals upon the first three grounds, and therefore affirm the judgment.
the time for review was to run from the entry of the orders of the Commissioner denying the petitions for rehearing of the order of August 13, which petition was filed September 16, 1940, and of the orders of September 7, which petition was filed September 20, 1940. These orders of the Commissioner denying the petitions for rehearing were entered November 28, 1940, and September 30, 1940.
the denial of a petition for rehearing. Conboy v. First National Bank, 203 U. S. 141, 203 U. S. 145; Bowman v. Lopereno, 311 U. S. 262, 311 U. S. 266; Brockett v. Brockett, 2 How. 238; Roemer v. Bernheim, 132 U. S. 103; Jones v. Thompson, 128 F.2d 888; Missouri v. Todd, 122 F.2d 804.
original order. Cf. Wayne United Gas Co. v. Owens-Illinois Glass Co., 300 U. S. 131, 300 U. S. 137-138. Whether time for appeal would be enlarged or not would depend upon what the order showed the court did.
In the present case, it is quite plain the denial was grounded upon a failure of the petitions for rehearing to establish adequate grounds for the reexamination of the original orders. The petition for rehearing of the order of August 13, relating to rent, sought to produce evidence that the rental fixed was too high, raised a question of law that a full three-years stay was not allowed, and alleged a lack of representation by counsel. A motion to dismiss the petition for rehearing as out of time was denied. The Commissioner examined the petition for rehearing and determined that the debtor had had full opportunity to present his evidence at the hearing, and that the stay was in accordance with the debtor's motion and that counsel for the debtor appeared at each hearing and knew of each order. He therefore concluded "that there is no equity or merit in the petition for rehearing," and denied the petition. The petition for rehearing of the orders of September 7 was similarly handled. They were orders for sales of perishable property, § 75(s)(2), stipulated to be perishable by counsel for the debtor. Rehearing was sought because of lack of representation by counsel and lack of notice of the orders. The Commissioner's decision on the petition for rehearing sets out the record facts showing representation and notice. We therefore conclude that the Commissioner did not reexamine the basis of any of the original orders, and that time for filing the petitions for review was not extended.
or on the right of a party to seek review. Courts of bankruptcy are courts of equity without terms. Commissioners, like referees, masters, and receivers, supervise estates under the eyes of the court, with their orders subject to its review. The entire process of rehabilitation, reorganization, or liquidation is open to reexamination out of time by the District Court, in its discretion, and subject to intervening rights. Cf. Wayne United Gas Co. v. Owens-Illinois Glass Co., 300 U. S. 131, 300 U. S. 137; Bowman v. Lopereno, 311 U. S. 262, 311 U. S. 266.
to dismiss because they were out of time. He thereupon heard and passed upon the petition's merits as bases for rehearings. His reasons for refusing to open the original orders complained of are adequate, and amply supported by the record. The appraisal was made, and the time of stay fixed, pursuant to the debtor's motion, he was represented by one or more counsel at each meeting, had opportunity to present evidence, and stipulated to the perishable character of the property ordered sold. See the last paragraph of 317 U. S.
IV. On account of debtor's motion, requesting the running of the moratorium of three years from April 26, 1940, the day of his adjudication in bankruptcy under 75(s), we do not consider the correctness of a stay of less than three years under other circumstances. In this instance, it was correct.
The referee appointed by the District Court for handling agricultural compositions is known as a conciliation commissioner. § 75 (a)-(r). When the farmer seeks bankruptcy under (s), the conciliation commissioner acts as referee. § 75(s)(4), 49 Stat. 942.
"A person aggrieved by an order of a referee may, within ten days after the entry thereof or within such extended time as the court may, for cause shown, allow, file with the referee a petition for review of such order by a judge and serve a copy of such petition upon the adverse parties who were represented at the hearing. . . ."
"Any farmer failing to obtain the acceptance of a majority in number and amount of all creditors whose claims are affected by a composition and/or extension proposal, or if he feels aggrieved by the composition and/or extension, may amend his petition or answer, asking to be adjudged a bankrupt. Such farmer may at the same time, or at the time of the first hearing, petition the court that all of his property, wherever located, whether pledged, encumbered, or unencumbered, be appraised, and that his unencumbered exemptions, and unencumbered interest or equity in his exemptions, as prescribed by State law, be set aside to him, and that he be allowed to retain possession, under the supervision and control of the court, of any part or parcel or all of the remainder of his property, including his encumbered exemptions, under the terms and conditions set forth in this section. Upon such a request's being made, the referee, under the jurisdiction of the court, shall designate and appoint appraisers, as provided for in this Act. Such appraisers shall appraise all of the property of the debtor, wherever located, at its then fair and reasonable market value. The appraisals shall be made in all other respects with rights of objections, exceptions, and appeals, in accordance with this Act: Provided, That, in proceedings under this section, either party may file objections, exceptions, and take appeals within four months from the date that the referee approves the appraisal."
Six other subdivisions of subsection (s) follow, numbered (1) to (6), inclusive, and relate chiefly to proceedings after appraisal.
"That, in case of real estate, either party may file objections, exceptions, and appeals within one year from date of order approving the appraisal."
"It provides that the referee, under the jurisdiction of the court, shall designate and appoint appraisers to appraise all of the property of the debtor at its then fair and reasonable market value. The appraisal is made in all other respects, with rights of objections, exceptions, and appeals, in accordance with the Bankruptcy Act, and either party may file objections, exceptions, or take such appeals within 4 months. Surely there is no question of constitutionality up to this point."
S.Rep. No. 985, 74th Cong., 1st Sess., p. 3; H.Rep. No. 1808, 74th Cong., 1st Sess., pp. 3-4.
See the discussion in 317 U. S.
Where a petition for rehearing is filed before the time for a petition for review has expired, it tolls the running of the time and limitation upon proceedings for review begins from the date of denial of the petition for rehearing. Morse v. United States, 270 U. S. 151, 270 U. S. 153-154; United States v. Seminole Nation, 299 U. S. 417, 299 U. S. 421; Gypsy Oil Co. v. Escoe, 275 U. S. 498.
Bernards v. Johnson, 314 U. S. 19, 314 U. S. 31; Bowman v. Lopereno, 311 U. S. 262, and cases cited; Chapman v. Federal Land Bank, 117 F.2d 321, 324.
Abrogated January 16, 1939, effective February 13, 1939, 305 U.S. 681.
American Trust Co. v. W. S. Doig, Inc., 23 F.2d 398; Crim v. Woodford, 136 F. 34; Bacon v. Roberts, 146 F. 729; In re Grant, 143 F. 661; In re Foss, 147 F. 790. 8 Remington on Bankruptcy (5th Ed.1941) § 3704.
In re Oakland & Belgrade Silver Fox Ranch Co., 26 F.2d 748; In re T. M. Lesher & Son, 176 F. 650; Amick v. Hotz, 101 F.2d 311; In re Wister, 232 F. 898, aff'd, 237 F. 793; see Roberts Auto & Radio Supply Co. v. Dattle, 44 F.2d 159.
H.Rep. No. 1409, 75th Cong., 1st Sess., p. 11; Committee Print, H.R. 12889, 74th Cong., 2d Sess., 149-50.
"consider records, findings, and orders certified to the judges by referees, and confirm, modify, or reverse such findings and orders, or return such records with instructions for further proceedings."
"consider and confirm, modify or overrule, or return with instructions for further proceedings, records and findings certified to them by referees."
H.Rep. No. 1409, supra, p. 19; S.Rep. No.1916, 75th Cong., 3d Sess., p. 11, compare Committee Print, H.R. 12889, supra, p. 11.
Thummess v. Von Hoffman, 109 F.2d 291; In re Albert, 122 F.2d 393; Boyum v. Johnson, 127 F.2d 491, 497, see Biggs v. May, 125 F.2d 693, 696; In re Loring, 30 F.Supp. 758, 759. Contra, In re Pfister, 123 F.2d 543, 548; In re Parent, 30 F.Supp. 943. Compare 2 Collier on Bankruptcy, 14th Ed.1940, §§ 39.16, 39.20; 8 Remington on Bankruptcy, supra, § 3705.

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