Heiser v. Woodruff

Decision Date04 September 1945
Docket NumberNo. 3043.,3043.
Citation150 F.2d 867
PartiesHEISER v. WOODRUFF et al.
CourtU.S. Court of Appeals — Tenth Circuit

Rupert B. Turnbull, of Los Angeles, Cal. (T. G. Gibson, of Ardmore, Okl., and Leonard J. Meyberg, of Los Angeles, Cal., on the brief), for appellant.

H. A. Ledbetter, of Ardmore, Okl., for appellees.

Before PHILLIPS, BRATTON, and HUXMAN, Circuit Judges.

BRATTON, Circuit Judge.

Leonard J. Woodruff was adjudged a bankrupt. Margueritte B. Woodruff, Leonard Woodruff, Jr., and Howard L. Woodruff, daughter and sons of the bankrupt, filed separate claims against the estate. M. E. Heiser, another claimant, submitted an application for authority to file objections to the claims. The referee entered an order granting the application, objections were filed, the referee allowed the claims in full, Heiser petitioned for review, the referee made the conventional certificate, the district court on review allowed the claims in reduced amounts, and Heiser appealed.

Appellees filed in this court a motion to reverse the provision in the judgment of the district court allowing the claims in reduced amounts and affirm the separate orders of the referee allowing them in full. The contention presented by the motion is that the court improvidently considered the claims on review because one creditor in a proceeding in bankruptcy does not have the right to petition for review of orders of the referee allowing claims of other creditors which merely affect the estate generally, except where the trustee refuses to seek review and the creditor obtains express authority to proceed.

Section 2 of the Bankruptcy Act, as amended, 52 Stat. 840, 11 U.S.C.A. § 11, provides among other things that the district courts sitting in bankruptcy are vested with such jurisdiction at law and in equity as will enable them to exercise original jurisdiction in proceedings under the act; and that they shall have jurisdiction to allow claims and reject claims, to consider records, findings, and orders certified to the judges by the referees, and confirm, modify, or reverse such findings and orders, and to make such orders and enter such judgments, in addition to those specifically provided for, as may be necessary for the enforcement of the act. The pertinent part of section 38, as amended, 11 U.S.C.A. § 66, provides that referees are vested, subject always to a review by the judge, with jurisdiction to perform such of the duties as are by the act conferred on the courts of bankruptcy, including those incidental to ancillary jurisdiction, and as shall be prescribed by the rules or orders of the courts of bankruptcy for their respective districts, except as therein otherwise provided. And section 39, sub. c, 11 U.S.C.A. § 67, sub. c, provides that a person aggrieved by an order of the referee may file with the referee a petition for review of the order by the judge, the time fixed for the filing of the petition being within ten days after the entry of the order or within such further time as the court may for cause shown allow.

The jurisdiction of the bankruptcy court attaches upon the filing of the petition in bankruptcy and continues thereafter until the closing of the estate. Thummess v. Von Hoffman, 3 Cir., 109 F.2d 291; In re Albert, 2 Cir., 122 F.2d 393. And the power of the court to review orders of the referee is unqualifiedly granted in section 2 of the Act. Pfister v. Northern Illinois Finance Corporation, 317 U.S. 144, 63 S.Ct. 133, 87 L.Ed. 146; In re Albert, supra. The referee is not a separate court. He is not endowed with any independent judicial authority which lies beyond the range of review of the bankruptcy court. He is merely an officer or arm of the court. His judicial functions, however important, are subject always to the reviewing eye of the court. The court has power sua sponte to review and revise orders of the...

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8 cases
  • People v. Cole Check Service, Inc.
    • United States
    • California Court of Appeals Court of Appeals
    • December 3, 1959
    ...of the bankruptcy court continues until the estate is closed. In re Pittsburgh Railways Co., 3 Cir., 253 F.2d 654; Heiser v. Woodruff, 10 Cir., 150 F.2d 867, certiorari denied 326 U.S. 778, 66 S.Ct. 271, 90 L.Ed. 471. The estate may be reopened, however, 'for cause shown.' Bankruptcy Act, §......
  • Licek Potato Chip Co., Matter of
    • United States
    • U.S. Court of Appeals — Seventh Circuit
    • May 21, 1979
    ...appointed by that court, 11 U.S.C. § 62(a), and deriving his jurisdiction and powers from that court, 11 U.S.C. § 66. Heiser v. Woodruff, 150 F.2d 867, 868 (10th Cir.), Cert. denied, 326 U.S. 778, 66 S.Ct. 271, 90 L.Ed. 471 (1945). Parties before the bankruptcy judge are before the district......
  • In re GEC Securities, Inc.
    • United States
    • U.S. District Court — Southern District of New York
    • November 20, 1963
    ...on its own motion to review orders in bankruptcy since a referee is considered an arm of the bankruptcy court. Heiser v. Woodruff, 150 F.2d 867 (10th Cir. 1945). It is within the court's discretion to add to the record evidence not heard by the Referee. General Order 47, 11 U.S.C. following......
  • Rooke v. Reliable Home Equipment Co.
    • United States
    • U.S. Court of Appeals — Fourth Circuit
    • April 1, 1952
    ...Security Corp., 8 Cir., 30 F.2d 359; In re Cook's Motors, 1 Cir., 142 F.2d 369; Ross v. Drybrough, 2 Cir., 149 F.2d 676; Heiser v. Woodruff, 10 Cir., 150 F.2d 867. In view of these authorities, we do not regard as controlling the decision of this court in McDaniel v. Stroud, 4 Cir., 106 F. ......
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