Court Opinion

ID: 9443142
Source: CourtListenerOpinion
Date Created: 2023-08-03 19:12:16.750389+00
Date Added: 2024-06-11T17:29:23.261977
License: Public Domain

MILLER, Circuit Judge
(dissenting).
Regardless of the advisability of having interlocutory orders appealable as a matter of right, it is now settled under Section 24(a) of the present Bankruptcy Act; Section 47(a) Title 11, U.S.C.A; that the United States Courts of Appeals are “invested with appellate jurisdiction from the several courts of bankruptcy in their respective jurisdictions in proceedings in bankruptcy, either interlocutory or final, * *
I am of the opinion that the order overruling the motion to quash the subpoena duces tecum and requiring the appellant to testify was an interlocutory order in a “proceeding in bankruptcy” which was appealable under the provisions of the foregoing statute. Matter of Winton Shirt Corp., 3 Cir., 104 F.2d 777; In re Youroveta Home & Foreign Trade Co., 2 Cir., 288 F. 507, 510; In re Bush Terminal Co., 2 Cir., 105 F.2d 156. The District Court apparently considered it as a part of the administration of the bankrupt estate as the immediate enforcement of it was in the Court’s opinion necessary in order to properly administer the estate.
It also seems well settled that such interlocutory orders are appealable as a matter of right, with a few minor exceptions, referred to hereinafter, without the necessity of an allowance of an appeal by either the District Court or by the Court of Appeals. Albin v. Cowing Joint Co., 317 U.S. 211, 63 S.Ct. 170, 87 L.Ed. 212; Matter of Winton Shirt Corp., supra, 3 Cir., 104 F.2d 777, 779-780; Robertson v. Berger, 2 Cir., 102 F.2d 530; In re Bush Terminal Co., supra; In re Braker, 6 Cir., 127 F.2d 652.
Although Section 24(a) of the Bankruptcy Act grants an appeal from an interlocutory order as a matter of right, there is some judicial interpretation of the Section *960holding that interlocutory orders not amounting to judicial rulings adjudging the rights of parties are not considered appeal-able orders. Collier on Bankruptcy, 14th Ed, Sec. 24.11, pages 730-731. Under such interpretation, an order to show cause, Morehouse v. Pacific Hardware & Steel Co., 9 Cir., 177 F. 337, an order directing a trial on the issues, In re Berthoud, 2 Cir., 238 F. 797, or an order of reference to a master, In re Hotel Governor Qinton, 2 Cir., 107 F.2d 398, have been held non-appealable. I do not think the order in the present case is of that nature. It decided a controversial question. The majority opinion shows that such a question has been considered by appellate courts in a number of instances. It adjudicated the rights of the appellant. It involved the exercise of judicial power as shown by the subsequent contempt proceedings to enforce compliance.
This Court has stated that, as a practical matter, administrative orders must have a certain degree of finality before they will be reviewed. Hoehn v. McIntosh, 6 Cir., 110 F.2d 199, 201. However, the opinion stated that “our jurisdiction is plain” and apparently considered it as within the discretion of the appellate court whether the interlocutory order should be reviewed then or later. In that case, the Court exercised immediate jurisdiction and reversed the interlocutory order. In the present case, the order, under consideration, although an administrative one, was a final disposition of appellant’s rights in the controversy. In any event, jurisdiction existed in the appellate court to determine if the order lacked the necessary degree of finality to bring it within the judicial exception to the statutory right of review granted by Section 24(a).
■ There is also some authority to the effect that an interlocutory order in bankruptcy, involving the exercise of discretion, is not an appealable order in the absence of a showing of an abuse of discretion on the part of the district judge. I agree that such an order will not be reversed on appeal in the absence of such a showing, but I am. of the opinion that such an order is appealable and subject to review by the appellate court, for the purpose of determining if there has been an abuse of discretion, even though no abuse of discretion is ultimately found to exist. The narrow scope of review does not negative the right of review. Such orders were reviewed and reversed in Hoehn v. McIntosh, supra, 6 Cir.; In re California Associated Products Co., 9 Cir., 183 F.2d 946; In re Stanley Engineering Corp., 3 Cir., 164 F.2d 316; In re A. Roth Co., 7 Cir., 125 F. 2d 396; Hedges v. Bushnell, 10 Cir., 106 F.2d 979. Such orders have been reviewed by the appellate court although affirmed, in most of the circuits, including our own; Federal Land Bank v. Strawn, 6 Cir., 102 F.2d 677; Third National Bank v. Schatten, 6 Cir., 81 F.2d 538; Federal Land Bank v. Hansen, 2 Cir., 113 F.2d 82, 84-85; In re Eastern Utilities Investing Corp., 3 Cir., 98 F.2d 620; Wragg v. Federal Land Bank, 5 Cir, 125 F.2d 1003, reversed 317 U. S. 325, 63 S.Ct. 273, 87 L.Ed. 300; In re Batavia Metal Products, 7 Cir., 166 F.2d 7; In re Kansas City Journal-Post Co., 8 Cir, 144 F.2d 816; In re McGoldrick, 9 Cir., 121 F.2d 746, certiorari denied 314 U. S. 675, 62 S.Ct. 187, 86 L.Ed. 540; Kenyon v. Chain O’Mines, 10 Cir., 107 F.2d 160. In those cases the orders of the District Court were affirmed, thus recognizing appellate jurisdiction, instead of dismissing the appeal for lack of jurisdiction. See Federal Land Bank v. Hansen, supra, 2 Cir., 113 F.2d 82, 84-85. Appellate jurisdiction does not exist or fail to exist depending upon the appellate court’s ultimate ruling on the merits. Conceding that the order in the present case involved the exercise of discretion on the part of the District Judge, nevertheless there was jurisdiction in the appellate court to review it for abuse of discretion.
In In re Eastern Utilities Investing Corp., 3 Cir., 98 F.2d 620, which involved an issue very similar to the present one, the appellate court reviewed on appeal the validity of the order of the District Court directing a discovery examination, before the order was enforced, although recognizing that the order was one within the discretion of the District Court. To the same effect is Marx v. Chase National Bank, 2 *961Cir., 117 F.2d 800. See also Willcox v. Goess, 2 Cir., 79 F.2d 546.
The order, being reviewable, was accordingly a judgment under the provisions of Rule 54(a) Rules of Civil Procedure. Being a judgment, the District Court was not authorized to enforce it until the expiration of ten days after its entry. Rule 62(a) Rules of Civil Procedure. Appellant took an immediate appeal from the order, but was denied the opportunity to obtain a supersedeas or to apply to this Court for a stay pending appeal. Scripps-Howard Radio, Inc. v. F.C.C, 316 U.S. 4, 9-10, 62 S.Ct. 875, 86 L.Ed. 1229; Janssen v. Belding-Corticelli, Ltd., 3 Cir., 79 F.2d 828. Due to the nature of the order, the immediate enforcement of it destroyed the value of the appeal.
Under this view of the case, I am of the opinion that the judgment should be reversed, without it being neteessary to rule on the validity of the order directing immediate enforcement of the order of contempt.