Document: 501 U.S. 157 111 S.Ct. 2197 115 L.Ed.2d 145 Sheldon Baruch TOIBB, Petitionerv.Stuart J. RADLOFF. No. 90-368. Argued April 22, 1991. Decided June 13, Syllabus Petitioner Toibb filed a voluntary petition for relief under Chapter 7 of the Bankruptcy Code, disclosing, inter alia, assets that included stock in an electric power company. When he discovered had substantial value, decided to avoid its liquidation by moving convert his case one 11's reorganization provisions. After Court granted motion, and plan, court dismissed petition, finding did not qualify 11 because was engaged ongoing business. The District Appeals affirmed. Held: Code's plain language permits individual debtors business file 11. is debtor within meaning § 109(d), which provides "a person who may be chapter . except stockbroker or commodity broker, railroad 11." He debtor, since only railroads various financial insurance institutions are excluded from 7's coverage, 109(d) makes available all entities eligible protection, other than stockbrokers commodities brokers. Although structure legislative history indicate it intended primarily use debtors, Code contains no requirement reorganization; there basis, including underlying policy considerations, imposing one. Pp. 160-166. 902 F.2d 14 (CA 8 1990), reversed. BLACKMUN, J., delivered opinion Court, REHNQUIST, C.J., WHITE, MARSHALL, O'CONNOR, SCALIA, KENNEDY, SOUTER, JJ., joined. STEVENS, dissenting opinion. Peter M. Lieb petitioner. Stephen Marzen, respondent United States supporting James Hamilton invitation as amicus curiae support judgment below. Justice BLACKMUN Court. 1 In this we must decide whether reorganize U.S.C. 1101 et seq. 2 * From March 1983 until 1985, petitioner Toibb, former staff attorney with Federal Energy Regulatory Commission, employed consultant Independence Electric Corporation (IEC), company two others organized produce market power. owns 24 percent company's shares. IEC terminated employment, unable find work energy field; has been largely supported family friends time. 3 On November 18, 1986, Eastern Missouri 701 Schedule Assets Liabilities accompanying petitioner's filing disclosed secured debts, disputed federal tax priority claim $11,000, unsecured debts $170,605.1 listed nonexempt shares possible against associates. stated value each these unknown. 4 August 6, 1987, Trustee appointed administer estate notified creditors Board Directors offered purchase $25,000. became aware such provisions 5 conversion App. 21, on February 1, 1988, plan reorganization. Id., at 70. Under proposed pay $25,000 less administrative expenses claims, proposal would result payment approximately cents dollar. further creditors, period six years, 50 any dividends proceeds sale stock, up full debts. 6 8, own motion ordered show cause why should and, therefore, debtor. 121. At ensuing hearing, unsuccessfully attempted demonstrate reorganize.2 also argued ruled that, authority Wamsganz v. Boatmen's Bank De Soto, 804 503 (CA8 1986), failed Pet. Cert. A-17 A-19. Missouri, relying Wamsganz, upheld Court's dismissal case. A-8 A-9. Eighth Circuit affirmed, holding dismiss proceeding sua sponte, Circuit's earlier decision controlling. re (1990).3 Because Appeals' ruling nonbusiness clearly conflicted Eleventh Moog, 774 1073 (CA11 1985), certiorari resolve conflict.4 --- ----, 775, 112 838 (1991). II A. our view, disposes question before us. Section 109, defines chapters Code. provides: "Only title, title." 109(b) states: "A title if not—(1) railroad; (2) domestic company, bank, .; (3) foreign States." "person" used Title "includ[e] [an] individual." 101(35). express terms 7" satisfies statutory requirements 9 11, loath infer exclusion certain classes protections Congress took care 109 specify qualifies-and does qualify-as expressly excludes coverage institutions. Only municipalities protection 9. 109(c). Most significantly, brokers ineligible relief, but otherwise leaves entity 7. knew how restrict recourse avenues bankruptcy relief; place beyond reach B 10 Amicus Curiae acknowledges exclude reach. echoes reasoning those courts have engrafted ongoing-business onto 109(a) argues statute's make clear alone. See, e.g., F.2d, 505 ("The taken whole, shows meant businesses persons business, consumer debtors"). We arguments unpersuasive several reasons. First, repeated some frequency: "Where, here, resolution law turns statute intention Congress, look first then unclear." Blum Stenson, 465 886, 896, 104 1541, 1548, 79 891 (1984). unclear. Thus, although appropriately refer ambiguity, need do so here. 12 Second, even were consider sundry comments urged congressional intent scant precise issue suggest "clearly expressed inten[t] contrary ." 109(d). See Consumer Product Safety Comm'n GTE Sylvania, Inc., 447 102, 108, 100 2051, 2056, 64 766 (1980). point following statement House report: 13 "Some avail themselves provided 13. For straight remedy will enable them get out debilitating effects too much debt." H.R.Rep. 95-595, p. 125, U.S.Code Cong. & Admin.News 1978, 5787 (1977). responds excerpt later Senate 15 "Chapter Reorganization, designed businesses, individuals chapter. procedures however, sufficiently complex they context." S.Rep. 95-989, (1978), 5789 (1978). 16 These apparently conflicting views tend negate suggestion enacting current operated deny 17 Finally, persuaded contention unavailable without many Chapter's apply There doubt among might like ones authorizing appointment equity security holders' committee, 1102, trustee "for cause, fraud, dishonesty, incompetence, gross mismanagement affairs management .," 1104(a)(1), certainly aid rehabilitation It follow, whose warrant relief. Instead, references history—reflect understandable expectation businesses; constitute additional prerequisite eligibility established III 18 foregoing analysis dispositive presented, deal briefly Amicus' considerations inferring preclude reorganizing said bringing scope serve Congress' purpose permitting restructure their order revive debtors' thereby preserve jobs protect investors. This argument assumes single suggests, agree, embodies general maximizing estate. Commodity Futures Trading Weintraub, 471 343, 351-354, 105 1992-94, 85 372 (1985). circumstances debtor's worth more reorganized liquidated Allowing proceed serves deriving 19 notes allowing permit shield both disposable income personal property. reflect offer expansive income, 7, assets. As initial matter, difference affirmatively reflects intent, allows Moreover, differences appreciation approaches necessary address effectively disparate situations seeking 20 contend leave worse position required liquidate. Tr. Oral Arg. 29-31. Nor could he. 1129(a)(7) confirmed unless accept receive liquidation. cannot expected approve immediate assets, follows usually when least Absent showing harm allowed see nothing allocation "burdens" "benefits" warrants inference coverage. Herbert, Proceedings: Abuse Alternative?, 91 Com. L.J. 234, 245-248 (1986). 21 warns flood plans ultimately prove unworkable. think fear unfounded greater expense complexity likely dissuade most Chapter. 3; supra, 242-243. gives discretion files untenable §§ 1112(b) 1129(a). 22 asserts extending creates risk forced into 303(a), reflected prevent involuntary proceedings particular, suggests unwise force reorganization, unlikely cooperate reorganization—a noted refusing allow proceedings. 120. 23 concerns overstated light dealing recalcitrant debtors. If fails cooperate, provide requisite "cause" 1112(b). event, overlooks primary concern about being 13: future wages exempt estate, 1322(a)(1), compelled toil benefit violation Thirteenth Amendment's servitude prohibition. comparable provision requiring creditor, relevant IV "ongoing business" basis Accordingly, 25 ordered. 26 dissenting. 27 reading plausible. omission prohibition introduction Report, quoted ante, 162. Nevertheless, I am incorrect. Two Code—Chapter entitled "Liquidation," seq., "Adjustment Debts Individual With Regular Income," 1301 seq.—unquestionably unambiguously authorize "Reorganization," corporate unquestionably authorizes proprietors enterprises. read seems quite intend "reorganization" 28 places limit class state members relief.1 states "only (Emphasis added.) not, every my judgment, word "only" introduces sufficient ambiguity justify careful examination Act, well history. 29 convinces me "business,"2 "the operation business,"3 "current debtor"4 abundantly principal focus upon reorganizations. conclusion discussion describes "chapter reorganization" repeatedly refers "business" subject relief.5 124 Cong.Rec. 34007 (1978) (Chapter "consolidated approach rehabilitation") (statement Sen. DeConcini). 30 significant emphasizes relationship between different Report remedy" "consumer [who] 13." 125 Cong.Rec., 32392, 32405 consolidated rehabilitation" "new commercial chapter") Rep. Edwards). accuracy comparison text 31 Above, striking titles—"Reorganization" opposed Income" Also conspicuous important amount $100,000 $350,000. 109(e). limit. accomplished little adjustment debt through same time limitation 11.6 32 More important, can instituted 303(a). A creditor therefore proceeding. institute regular income. highly pensioners, while prohibiting 33 reasons, notwithstanding relies, would, accordance whole respectfully dissent. exceeded seek review agreed what regarded precedent Little Creek Development Co., 779 1068 (CA5 Winshall Settlor's Trust, 758 1136 (CA6 1985). named respondent, Stuart Radloff, converted Mr. Radloff participate refrained responding Toibb's specifically requested Trustee, 581(a)(13), respond. doing so, indicated agreement suggested case, wish appoint counsel defend judgment. invited Hamilton, Esq., Washington, D.C., member Bar Appeals. accepted fulfilled assigned responsibility. stockholder (emphasis added). 1101(2)(B), 1108. 1103(c)(2), 1105, 1106(a)(3). 1104(b). explanation reorganizations: deals financially distressed enterprise, providing obligations interests. distinguished replaces X, XI XII includes special view impact regulatory laws section 77 Act. reorganizations simplify eliminating unnecessary detail inevitable separately administered statutes. "Business governed principally X XI, adopted part reforms 1938. alternate paths mutually exclusive. public companies small privately owned businesses. "That schematic design conceived, flawed somewhat failure include definition 'public company.' result, considerable litigation developed, mostly initiative Securities Exchange over belonged XI. came Supreme three cases, last SEC American Trailer Rentals, 379 594, 513, 510 (1965), enunciate hard-and-fast rule cases. announced guidelines, large continued resort "The bill provides, eliminate unprofitable preliminary apply. "Reorganization, fundamental aspects, involves thankless task determining share losses incurred unsuccessful values apportioned stockholders." pp. 9-10 believes adversely affect 7-8, sure. takes money determine benefits equal still predictive correct "complex" process, almost consume resources simpler procedures.

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