Court Opinion

ID: 9458163
Source: CourtListenerOpinion
Date Created: 2023-08-04 20:44:24.536832+00
Date Added: 2024-06-11T17:35:39.494492
License: Public Domain

ON PETITION FOR REHEARING
PER CURIAM:
In its petition for rehearing, the government points out that the order of the referee granting the taxpayers’ discharge in bankruptcy was appealed to and upheld by the Federal District Court for the Eastern District of New York,1 and thereafter this decision was appealed to and affirmed by the United States Court of Appeals for the Second Circuit.2 Based on these appeals, the argument is made that the discharge did not become final until 90 days after the Second Circuit’s affirmance (the deadline for filing a petition for certiorari in the Supreme Court) and therefore the taxpayers actually retained assets under the control of the bankruptcy court until that date. It happens that the deadline for filing for certiorari came two and one-half years after the initial discharge, and were the statute of limitations tolled until that late date, all taxes sued for here would be collectible.
 This added contention is without merit. The records of the district court and court of appeals here involved, which we judicially notice, disclose that the referee suspended his discharge order until such time as it might be ruled on by the district judge. However, no further suspension, stay, or writ of supersedeas was granted by any court. The judgment by which a court ends a cause does not hang in limbo pending appeal. If not stayed or otherwise suspended, it becomes final 10 days after issuance. Fed.R.Civ.P. 62. See generally 9 Moore’s Federal Practice ¶¶ 62.03-62.09 (2d ed. 1970) . This rule effects a' particularly important policy in the bankruptcy area by insuring that the economic lives of bankrupts and creditors alike not be interrupted during appellate procedures. Wilson v. Alliance Life Ins. Co., 108 F. 2d 150 (5th Cir. 1939); Chicago Tunnel Terminal Corp. v. Rutland Transit Co., 255 F.2d 316 (7th Cir. 1958). See 2 Collier on Bankruptcy ¶ 25.12 (14th ed. 1971) .
Thus 10 days after the district judge affirmed the referee’s order, the *1090discharge became final and the statute of limitations began to run. As a factual matter in the context of the present case, the referee’s suspension extended by approximately four months the period during which the government might have brought suit; such an extension is far too short to aid the government’s cause here. It in no way alters our original decision that the present collection attempt is now time-barred.
The other points raised are without merit, and the petition is hereby
Denied.

. In re Verlin, 148 F.Supp. 660 (E.D.N.Y. 1957).

. Fishman v. Verlin, 255 F.2d 682 (2d Cir. 1958).