Opinion ID: 369386
Heading Depth: 3
Heading Rank: 1

Heading: Consent through filing.

Text: 49 PIC came into the bankruptcy court to ask it to lift the automatic stay over legal actions against Vita Management. It sought to exercise its right to evict Vita from occupancy of the hotel upon termination of the lease. PIC asked for administrative rentals for the period in which Vita Management possessed the hotel. The rentals were not claimed under the lease, which had been terminated, but for use and occupancy of the premises. In re Fredrick Meats, Inc., 483 F.2d 951 (9th Cir. 1973); S & W Holding Co. v. Kuriansky, 317 F.2d 666 (2d Cir. 1963). The broader questions surrounding the July 10, 1975 agreement were not raised in answer to PIC's complaint, but by Losee's Restaurant Equipment & Supply Co. when it intervened in the action. 50 It is clear that the bankruptcy court may, upon a proper counterclaim, determine all the rights of the parties connected with and arising out of the transaction. 2 Collier on Bankruptcy, Supra, P 23.08(5) at 551. The very action of entering the bankruptcy court conveys consent as to the transaction. But this consent does not extend to totally unrelated counterclaims. In re Bankers Trust Co., 566 F.2d 1281, 1288 (5th Cir. 1978). Similarly, a mere general appearance for the purpose of presenting claims and opposing other claims will not amount to consent to a summary proceeding instituted by the trustee to determine title to property acquired by the claimant prior to bankruptcy. In re Vadner, 17 F.2d 721, 722-23 (9th Cir. 1927). 51 PIC was not even presenting a claim to the bankruptcy court. It was, however, asking that court to recognize the termination of its lease agreement with the Vita interests. In so doing, PIC consented to the adjudication of counterclaims relating to that lease. 52 As the district court noted in its memorandum and order on rehearing: 53 The filing of the original Complaint did, however, constitute a limited consent to the bankruptcy court's exercise of jurisdiction. Since PIC sought to enforce its rights under the lease, it necessarily consented as well to a determination of the lease's validity. 54