Court Opinion

ID: 9452423
Source: CourtListenerOpinion
Date Created: 2023-08-04 17:40:29.036003+00
Date Added: 2024-06-11T17:33:12.875348
License: Public Domain

SCHNACKENBERG, Circuit Judge
(dissenting).
It seems to me that the pendency of the proceeding under Chapter XI of the Bankruptcy Act which is involved in this case, prevents a creditor from enforcing his rights against the debtor by action in any state court which would interfere with the bankruptcy court. However, I do not believe that a Chapter XI proceeding is in any way interfered with by a creditor of the debtor reducing his claim to a judgment in a state court. He thereby simply perfects his lien as a matter of record, an act which in no way interferes with the Chapter *329XI proceeding. Accordingly, I believe that the federal law does not interfere with the right of such a creditor to pursue his legal remedy under state law by reducing his claim against the debtor to the form of a judgment.
The pertinent question is — was the entry of the judgment by the creditor in the state court an interference in any way with the administration of the federal court under Chapter XI of the Bankruptcy Act? The answer is certainly in the negative. I therefore am constrained to dissent.