Court Opinion

ID: 9637340
Source: CourtListenerOpinion
Date Created: 2023-08-22 15:03:49.294285+00
Date Added: 2024-06-11T18:04:57.775033
License: Public Domain

On Petition for Rehearing.
As the order of April 14, 1942, was based upon a reclamation petition, we erred in our original opinion when we said that § 57, sub. k, 11 U.S.C.A. § 93, sub. k, governed. Nevertheless, Rule 60(b), 28 U.S.C.A. following section 723c, is not applicable because it relates only to a final order;1 and no order in a bankruptcy proceeding is final (in the sense that it cannot be reopened) until the proceeding has been terminated.2
The insurance company argues that the trustee’s appeal is from the denial of a petition for a reconsideration of an earlier order and is therefore not appealable. We do not agree. This being a bankruptcy proceeding, the Referee, as the Court of Bankruptcy3 had discretion to re-examine and vacate the former order. The issue before the Court below was whether the Referee had abused his discretion; 4 and that question comes before us on this appeal. We think the discretion was clearly abused.5
The petition for review was timely. For where an application is made for reconsideration, the time for review begins to run from the date of denial of such relief, provided the Referee reconsidered the merits of the original order.6 We think that the Referee did thus reconsider the merits for he based his denial of relief on res judicata (i.e., the rejection of a previous petition for reconsideration) which was a defense on the merits.7 In such circumstances, the petition to review must relate to the original order, not to the denial order ; literally the petition here asked review of the Referee’s denial order, but we consider it as, in effect, the same as a petition to review the original order.8
Accordingly we adhere to our earlier ruling and deny the petition for rehearing.

 American United Life Ins. Co. v. Haines City, Florida, 5 Cir., 117 F.2d 574, 575. See Marconi Wireless Tel. Co. v. United States, 320 U.S. 1, 47, 63 S.Ct. 1393, 87 L.Ed. 1731, decided after the Rules became effective.

 Wayne United Gas Co. v. Owens-Illinois Gas Co., 300 U.S. 131, 57 S.Ct. 382, 81 L.Ed. 557; Pfister v. Northern Illinois Fin. Corp., 317 U.S. 144, 149, 63 S.Ct 138, 87 L.Ed. 146; Bowman v. Lopereno, 311 U.S. 262, 61 S.Ct. 201, 85 L.Ed. 177; Rafert v. Equitable Life Assurance Soc., 8 Cir., 138 F.2d 185, 187, certiorari denied 320 U.S. 801, 64 S.Ct. 431, 88 L.Ed. 484; Curtis v. O’Leary, 8 Cir., 131 F. 2d 240, 245; Mulligan v. Federal Land Bank of Omaha, 8 Cir., 129 F.2d 438, 440; Walgreen Drug Stores v. Scruggs, 4 Cir., 129 F.2d 789, 790; In re Chicago, M. & St. P. R. Co., 7 Cir., 138 F.2d 235, certiorari denied Abrams v. Scandrett, 321 U.S. 770, 64 S.Ct. 528, 88 L.Ed. 1066; American United Life Ins. Co. v. Haines City, Florida, 117 F.2d 574, 575.
This in no way implies that an order in a “controversy arising in a proceeding in bankruptcy” may not be final for the purpose of taking an appeal therefrom.

 Bankruptcy Act § 1(9), 11 U.S.C.A. § 1(9).

 Kimm v. Cox, 8 Cir., 130 F.2d 721, 732, 733; Wharton v. Farmers & Merchants Bank, 8 Cir., 119 F.2d 487. See also the cases cited in footnote 2, supra.

 Cf. Huddleston v. Dwyer, 322 U.S. 232, 64 S.Ct. 1015, 88 L.Ed. 1246.

 Pfister v. Northern Illinois Fin. Corp., 317 U.S. 144, 63 S.Ct. 133, 87 L.Ed. 146; Bowman v. Lopereno, 311 U.S. 262, 61 S.Ct. 201, 85 L.Ed. 177.

 That a decision based on res judicata is on the merits, cf. Buck v. Spofford, 35 Me. 526.

 Cf. Safeway Stores v. Coe, 78 U.S. App.D.C. 19, 136 F.2d 771, 772, 148 A.L. R. 782.