15 B.R. 131 (Bkrtcy.E.D.Tenn. 1981), 1-80-0696, In re Nixon Machinery Co.

Docket NºAdv. No. 1-80-0696.
Citation15 B.R. 131
Party NameIn re NIXON MACHINERY COMPANY, Debtor. NIXON MACHINERY COMPANY, Plaintiff, v. ROY ENERGY, INC., and Robert C. Roy, Defendants. Bankruptcy No. 1-80-00779.
Case DateOctober 29, 1981
CourtUnited States Bankruptcy Courts, Sixth Circuit

Page 131

15 B.R. 131 (Bkrtcy.E.D.Tenn. 1981)

In re NIXON MACHINERY COMPANY, Debtor.

NIXON MACHINERY COMPANY, Plaintiff,

v.

ROY ENERGY, INC., and Robert C. Roy, Defendants.

Bankruptcy No. 1-80-00779.

Adv. No. 1-80-0696.

United States Bankruptcy Court, E.D. Tennessee.

October 29, 1981

Richard T. Klingler, Weill, Ellis, Weems & Copeland, Chattanooga, Tenn., for plaintiff.

Allison Ulin, Paty, Rymer & Ulin, Chattanooga, Tenn., for defendants.

MEMORANDUM

RALPH H. KELLEY, Bankruptcy Judge.

This is a suit to collect a debt, brought in this court because the plaintiff, Nixon Machinery, is a debtor in possession in a chapter 11 bankruptcy case pending in this court. See 11 U.S.C. ss 1106(a), 323, & 542(b). The alleged debtors, Robert C. Roy and Roy Energy, Incorporated, deny they owe Nixon any debt. But the question now before the court does not concern the merits of Nixon's claim.

In their answer, the defendants raised two preliminary defenses: (1) that service of process was insufficient and (2) that the court does not have jurisdiction over them. 1 The defendants subsequently filed a motion to dismiss on the same grounds.

Service of Process

Service of process was by mail to the defendants' address in Del Ray Beach, Florida.

Page 132

The defendants' briefs and argument did not question the legality of service of process by mail. They admitted it was received. It appears the objection to service of process was intended to raise the jurisdiction question. It was not intended to be a separate defense. 2

In any event, service of process by mail is proper in bankruptcy proceedings. Bankruptcy Rule 704 provides:

(c) Service of summons, complaint, and notice of pre-trial conference may also be made within the United States by first-class mail postage prepaid as follows:

(1) Upon an individual ... by mailing ... to the place where he regularly conducts his business or profession.

....

(3) Upon a domestic or foreign corporation ... by mailing ... to the attention of an officer .... 3

Mr. Roy was served individually and as president of Roy Energy at its business address.

The defense that service of process was insufficient must be rejected.

Jurisdiction

The defendants do not seriously dispute that Congress intended for the bankruptcy courts to have jurisdiction to decide almost all controversies related to bankruptcy cases. 4 The statutes and their legislative history show that intent clearly.

The jurisdiction statute, 28 U.S.C. s 1471, provides:

(a) Except as provided in subsection (b) of this section, the district courts shall have original and exclusive jurisdiction of all cases under title 11.

(b) Notwithstanding an Act of Congress that confers exclusive jurisdiction on a court or courts other than the district court, the district courts shall have original but not exclusive jurisdiction of all civil proceedings arising in or related to a case under title 11.

(c) The bankruptcy court for the district in which a case under title 11 is commenced shall exercise all of the jurisdiction conferred by this section on the district courts.

Subsection (b) is the applicable section. It and subsection (c) give the bankruptcy courts jurisdiction over proceedings such as this one, despite any federal law that also confers jurisdiction in other courts.

Technically, it can be argued that the statute only gives the court subject matter jurisdiction over civil proceedings such as this.

Even if that is true, the broad extent of the jurisdiction given reflects on the intended extent of the courts' personal jurisdiction. The Senate Judiciary Committee explained:

This broad grant of jurisdiction will enable the bankruptcy courts, which are created as adjuncts of the district court for the purpose of exercising the jurisdiction, to dispose of controversies that arise in bankruptcy cases or under the bankruptcy code. Actions that formerly had to be tried in the State court or in the Federal district court, at great cost and delay to the estate, may now be tried in

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the bankruptcy court. The idea of possession and consent as bases for jurisdiction is eliminated. The adjunct bankruptcy courts will exercise in personam as well as in rem jurisdiction in order that they may handle everything that arises in a bankruptcy case.

S.Rep.No. 95-989, 95th Cong., 2d Sess. 153, U.S.Code Cong. & Admin.News 1978, pp. 5787, 5939 (1978).

The venue statute, 28 U.S.C. s 1473, further indicates the extent to which the bankruptcy courts were expected to have personal jurisdiction.

(a) Except as provided in subsections (b) and (d) of this section, a proceeding arising in or related to a case under title 11 may be commenced in...

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13 practice notes
  • 40 B.R. 47 (Bkrtcy.N.D.Ohio 1984), 83-0471, In re Sportfame of Ohio, Inc.
    • United States
    • Federal Cases United States Bankruptcy Courts Sixth Circuit
    • April 25, 1984
    ...Coby Glass Products Co.), 22 B.R. 961, 9 BCD 756 (Bkrtcy.D.R.I.1982); Nixon Machinery Co. v. Roy Energy, Inc. (In re Nixon Machinery Co.), 15 B.R. 131, 8 BCD 373 (Bkrtcy.E.D.Tenn.1981), the evidence adduced at trial that defendant's salespeople called on plaintiff repeatedly at its place of......
  • 19 B.R. 113 (1st Cir.BAP (Mass.) 1982), 81-9011, In re Auburn Medical Realty
    • United States
    • Federal Cases United States Bankruptcy Courts First Circuit
    • March 29, 1982
    ...court to handle everything that arises in a bankruptcy case. Nixon Machinery Co. v. Roy Energy, Inc. (In re Nixon Machinery Co.), 15 B.R. 131, 132, 8 B.C.D. (CRR) 373 (Bkrtcy.E.D.Tenn.1981); H.R.Rep.No. 595, 95th Cong. 1st Sess. 445 (1977); S.Rep.No. 989, 95th Cong.2d Sess. 153 Caron was a ......
  • 24 B.R. 141 (Bkrtcy.S.D.N.Y. 1982), 82-5623, In re Lionel Corp.
    • United States
    • Federal Cases United States Bankruptcy Courts Second Circuit
    • October 28, 1982
    ...all matters involving a bankruptcy should be tried in the court in which the bankruptcy is pending. See In re Nixon Machinery Company, 15 B.R. 131 (Bkrtcy.E.D.Tenn.1981); Matter of Trim-Lean Meat Products, Inc., 11 B.R. 1010 (D.C.D.Del.1981). That plaintiff's choice of forum in New York is ......
  • 69 B.R. 79 (Bkrtcy.N.D.Ga. 1986), 86, In re Prospect Hill Resources, Inc.
    • United States
    • Federal Cases United States Bankruptcy Courts Eleventh Circuit
    • December 24, 1986
    ...Galasso (In re Baker's Equip./Winkler, Inc.), 33 B.R. 307 (Bankr.D.N.J.1983); Nixon Mach. Co. v. Roy Energy, Inc. (In re Nixon Mach. Co.), 15 B.R. 131, 135 (Bankr.E.D.Tenn.1981). Defendants argue, however, that the Page 80 States Supreme Court rejected state sovereignty as the basis for the......
  • Request a trial to view additional results
13 cases
  • 40 B.R. 47 (Bkrtcy.N.D.Ohio 1984), 83-0471, In re Sportfame of Ohio, Inc.
    • United States
    • Federal Cases United States Bankruptcy Courts Sixth Circuit
    • April 25, 1984
    ...Coby Glass Products Co.), 22 B.R. 961, 9 BCD 756 (Bkrtcy.D.R.I.1982); Nixon Machinery Co. v. Roy Energy, Inc. (In re Nixon Machinery Co.), 15 B.R. 131, 8 BCD 373 (Bkrtcy.E.D.Tenn.1981), the evidence adduced at trial that defendant's salespeople called on plaintiff repeatedly at its place of......
  • 19 B.R. 113 (1st Cir.BAP (Mass.) 1982), 81-9011, In re Auburn Medical Realty
    • United States
    • Federal Cases United States Bankruptcy Courts First Circuit
    • March 29, 1982
    ...court to handle everything that arises in a bankruptcy case. Nixon Machinery Co. v. Roy Energy, Inc. (In re Nixon Machinery Co.), 15 B.R. 131, 132, 8 B.C.D. (CRR) 373 (Bkrtcy.E.D.Tenn.1981); H.R.Rep.No. 595, 95th Cong. 1st Sess. 445 (1977); S.Rep.No. 989, 95th Cong.2d Sess. 153 Caron was a ......
  • 24 B.R. 141 (Bkrtcy.S.D.N.Y. 1982), 82-5623, In re Lionel Corp.
    • United States
    • Federal Cases United States Bankruptcy Courts Second Circuit
    • October 28, 1982
    ...all matters involving a bankruptcy should be tried in the court in which the bankruptcy is pending. See In re Nixon Machinery Company, 15 B.R. 131 (Bkrtcy.E.D.Tenn.1981); Matter of Trim-Lean Meat Products, Inc., 11 B.R. 1010 (D.C.D.Del.1981). That plaintiff's choice of forum in New York is ......
  • 69 B.R. 79 (Bkrtcy.N.D.Ga. 1986), 86, In re Prospect Hill Resources, Inc.
    • United States
    • Federal Cases United States Bankruptcy Courts Eleventh Circuit
    • December 24, 1986
    ...Galasso (In re Baker's Equip./Winkler, Inc.), 33 B.R. 307 (Bankr.D.N.J.1983); Nixon Mach. Co. v. Roy Energy, Inc. (In re Nixon Mach. Co.), 15 B.R. 131, 135 (Bankr.E.D.Tenn.1981). Defendants argue, however, that the Page 80 States Supreme Court rejected state sovereignty as the basis for the......
  • Request a trial to view additional results