Legal Document

454 U.S. 354 102 Supreme Court Reporter 695 70 United States Reports Lawyer’s Edition 2d Series KF101.8 U54 542 CENTRAL TRUST COMPANY, ROCHESTER, N. Y.v.OFFICIAL CREDITORS' COMMITTEE OF GEIGER ENTERPRISES, INC., et al. Number 80-1565. Jan. 11, 1982. PER CURIAM. 1 On August 15, 1979, Geiger Enterprises, Incorporated (Geiger), filed a petition in the District for Western of New York seeking relief under Chapter XI Bankruptcy Act 1898 (formerly 11 Code KF62 § 701 seq.) (Bankruptcy Act). continued operating its business as debtor-in-possession, and numerous creditors claims, including claim by $2,075,674.64 unpaid taxes. Respondent Official Creditors' Committee was established to represent interests with relatively small claims. 2 October 1, Reform 1978, Public Law 95-598, 92 Statutes-at-Large 2549, 101 seq. (1976 ed., Supp.IV) (New Code), became effective. Thereafter, several Geiger's wholly owned subsidiaries affiliate corporations petitions Code. January 9, 1980, moved dismiss on representation that if dismissal were granted it too would immediately file seek substantive consolidation proceedings subsidiary corporations. 3 This motion opposed petitioner, secured creditor, States. Both opponents argued such prohibited 403(a) Code, transitional rule enacted Congress govern cases pending effective day Section provides: 4 "A case commenced Act, all matters or relating any case, shall be conducted determined [the Code] had not been enacted, rights parties connection bankruptcy matter, proceeding continue governed law applicable [New enacted." 2683, note preceding Supp.IV). 5 The rejected this argument petition, relying primarily upon Rule 11-42(a) Rules Procedure, which 6 "Voluntary Dismissal Conversion Bankruptcy. 7 "The debtor may an application convert at time prior confirmation or, where court has retained jurisdiction, after confirmation. filing motion, . enter order hearing notice dismissing adjudicating him bankrupt whichever best interest estate." 8 characterized "unique purpose is permit refiling compatible provisions [to] consolidation," found affiliates "be App. Pet. Certiorari A-11. Thus, February 8, original dismissed 9 reversed. It held "the plain meaning section 403(a)" "that must apply [Bankruptcy] 1979 proceed [Code] never Id., A-19. 10 appeal, Court's decision turn reversed Appeals Second Circuit. In re Inc., 635 Federal Reporter, 2nd 106 (1980). read conjunction certain cases, "[t]he operative test whether estate's will served by" procedure. qualified holding improper they prejudiced claims creditors, remanded so could consider existence actual prejudice. Petitioner sought review Court, arguing "conflicts well legislative history," "provides procedural device clear Congressional intent easily negated." 9. We agree. 12 language unequivocal. provides "shall makes no exception refiled Code; indeed, expressly governed" Act. Any mandate recognized judicial creation, supported neither nor history.1 13 Nor does provide authority clearly contemplates voluntary results adjudication debtor's one revests title property removes from protection laws. contemplate dismissal, declares restores creditors' against property, but simply holds abeyance while files new law.2 Even possible interpret 11-42(a), modify command 403(a). Procedure are only "to extent inconsistent amendments made Code]."3 Transitional 405(d), 2685. As interpreted Appeals, conflicts 14 erred when "amended" actually prejudice creditors. That thought those serve estate, conserve resources, justify disregard congressional directive. "It elementary statute must, first instance, act framed, plain, within constitutional law-making body passed it, sole function courts enforce according terms." Caminetti versus States, 242 470, 485, 37 192, 194, 61 L.Ed. 442 (1917). While have reached practical result, result unambiguous used Congress. Accordingly, writ certiorari granted, judgment 15 ordered. 16 Justice STEVENS, whom MARSHALL joins, dissenting. 17 If judge, consent correctly concluded estate judiciary permitting immediate commencement action Supp.IV)? & N Dec. Immigration Nationality Decisions think not. Although two objected today leaves doubt about answer question. Despite recognition result," ante, page, "consolidation [and] resources," 359, forbade 18 seems most unlikely commanded reaches contemplated set facts confronting case. modernize laws make system more workable efficient. H.R.Rep.No.95-595, Pages 3, 52 (1977). Permitting thereby facilitating subsidiaries, perfectly consistent spirit both statutes. 19 Moreover, believe Appeals' faithful provision contains commands date other substantive. requires Act.1 statute.2 20 followed pursuant authorizes based finding "in estate."3 noted, mean debtor,"4 record. instructed remand affect rights. "are fact materially prejudiced," 106, 109 (CA2 1980), then permitted. parties, permitted 11-42(a); 403(a), therefore, satisfied. 21 Likewise, disposition assures followed. prejudiced, authorized satisfies 22 persuaded intended enact inflexible enforces today, still decide issue probable question raised become moot follow normal practice declining interlocutory orders.5 tax stake, agreeing reading recognizes "limited administrative importance" merit Court.6 consequence impose unnecessary work busy federal judges. three Circuit Judges efficient conduct single consolidated rather than separate group affiliated petitioners. Meanwhile, expends scarce energy involves error harmless law. 23 respectfully dissent. history supports unequivocal House Report explained: phase transition begins [1979], primary bill. date, proposed bill put into effect. [1979]. however. Cases before effect September 30, date. Those though 287-288 (1977), U.S.Code Cong. Admin.News 5787, 6244 (footnotes omitted). same also states: "[Section ] continues without change. old did take applies matters." 459. either "enter bankrupt," case." latter entered, subdivision (d) "[a] certified copy constitute conclusive evidence revesting his property." bankruptcy, petition. commentator stated: should apparent that, placed exactly he therefore something plain. When [proceeding] entered legal among consequences revestment debtor, divestment jurisdiction over wherever located. 11-42(d) merely revested but, also, revestment. This, effect, preserves who informed 11-42(c), their remedies W. Collier, ¶ 11-42.07 (14th ed.1976). evident discussion, dissent misperceives 11-42 argues mechanism satisfied kind full discharge bankruptcy. discharged below. Rather, solely is, avoid prohibition 405(d) [R]ules [of Procedure] prescribed 2075 28 until rules repealed superseded section, amended 248 Act." 2685, 1471 Supp.III). describes Rules' thus directly demonstrates Congress' override erroneously relied command. ." continues: "[A]nd dismissals pertinent part: "On order, Judge, hearing, these findings: Procedure. unique distribution and, thus, consolidation. opposing intend result. To contrary, there reason even envisioned problem hand. "Practical, economical expeditious administration avoidance costly litigation alternative approach suggested Government [piercing corporate veil bringing them Act] render 1980) (citing Banque de Financement First National Bank Boston, 568 911, 921-922 1977)). Considering given differences treatment accorded statutes, see F.2d, 109, find explaining why need grant certiorari, Solicitor General "Despite below, we because absence conflict appeals, possibility government prevail remand, limited importance presented dealing governing enactment Code." Memorandum 5.

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