Opinion ID: 335117
Heading Depth: 2
Heading Rank: 1

Heading: Jurisdiction of the Court of Appeals Over Bankruptcy Matters.

Text: 11 The court of appeals is a court of limited jurisdiction, and its jurisdiction is expressly provided for by statute. It is soundly stated in Grace v. American Central Ins. Co., 109 U.S. 278, 283, 3 S.Ct. 207, 210, 27 L.Ed. 932, 934 (1883) that, 12 As the jurisdiction of the Circuit Court is limited, in the sense that it has no other jurisdiction than that conferred by the constitution and laws of the United States, the presumption is that a cause is without its jurisdiction unless the contrary affirmatively appears. (citations omitted) 13 The source of jurisdiction of the court of appeals in bankruptcy matters arising from the district court sitting as a bankruptcy court is § 24a of the Act (11 U.S.C. § 47a, hereinafter s 24a). Section 24a reads, in the part relevant to this case: 14 The United States courts of appeals, in vacation, in chambers, and during their respective terms, as now or as they may be hereafter held, are invested with appellate jurisdiction from the several courts of bankruptcy in their respective jurisdictions in proceedings in bankruptcy, either interlocutory or final, and in controversies arising in proceedings in bankruptcy, to review, affirm, revise, or reverse, both in matters of law and in matters of fact. . . . (emphasis added) 15 Section 24a, enacted by the 1938 Chandler Act, has uniformly been interpreted by the courts and treatises to distinguish the appealability of  proceedings from the appealability of controversies. With respect to interlocutory orders an appeal will lie from a proceeding in bankruptcy but not from a controversy. 16 2 Collier on Bankruptcy, P 24.27(2) (14th Ed., rev. 1975), at 762 states, 17 (T)he 1938 Act maintains the long existing distinction between 'controversies arising in proceedings in bankruptcy' and 'proceedings in bankruptcy' so as to make only final orders in 'controversies' appealable, as contrasted with the right conferred by the Act to appeal from both final and interlocutory orders entered in 'proceedings.'  18 In accord is 9 Moore's Federal Practice, P 110.19(5) (2d Ed., rev. 1975), at 222: 19 Simply put, and for the sake of simplicity putting aside the jurisdictional sum requirement, an interlocutory order in a proceeding in bankruptcy is appealable; an interlocutory order in a controversy in a proceeding in bankruptcy is appealable only if by virtue of some provision of 28 U.S.C. § 1292. 1 20 Not surprisingly, the case law of this and other circuits agree. As recently as 1973, in In re Merle's Inc., 481 F.2d 1016, 1017 (9 Cir. 1973), our court has held, 21 Under subdivision (a) of 11 U.S.C. § 47 (§ 24a of the Act), appeals will lie from either final or interlocutory decrees or orders entered in 'proceedings in bankruptcy'. On the other hand, appeals from orders or decrees entered in 'controversies arising in proceedings in bankruptcy' may generally be taken only when those orders or decrees are final. (citation omitted) 2 22 Accord, Diamond Door Co. v. Lane-Stanton Lumber Co., 505 F.2d 1199, 1202-03, n.4 (9 Cir. 1974), Trieber v. England, 237 F.2d 117, 118 (9 Cir. 1956), cert. den., 352 U.S. 967, 77 S.Ct. 356, 1 L.Ed.2d 322 (1957), Petersen v. Sampsell, 170 F.2d 555, 556 (9 Cir. 1948), and Goldie v. Carr, 116 F.2d 335, 336 (9 Cir. 1940). For an exhaustive list of cases supporting this rule see 2 Collier, P 24.04(2), n.35, at 717. Also see cases cited in 11 U.S.C.A. § 47, Notes 13, 14 and 15 (West 1953 and 1976 pocket part). 23 Thus the law compels us to address these two questions: (1) is the order appealed from an interlocutory order, and (2) is the case a controversy or a proceeding in bankruptcy. If we conclude that the order is interlocutory and it involves a controversy, we have no jurisdiction. 24