In re Best Re-Manufacturing Co.
| Citation | 453 F.2d 848 |
| Decision Date | 08 December 1971 |
| Docket Number | No. 26738.,26738. |
| Parties | In the Matter of BEST RE-MANUFACTURING CO., Debtor. Don ROTHMAN, Receiver, Appellant, v. The PACIFIC TELEPHONE AND TELEGRAPH COMPANY, Petitioner, Appellee. |
| Court | United States Courts of Appeals. United States Court of Appeals (9th Circuit) |
Richard F. Broude (argued) and Nathan Markowitz, of Gendel Raskoff, Shapiro & Quittner, Los Angeles, Cal., for appellant.
Richard D. DeLuce (argued) of Lawler, Felix & Hall, Los Angeles, Cal., for appellee.
Before BARNES and MERRILL, Circuit Judges, and CROCKER, District Judge*.
The question here presented is whether, in arrangement proceedings under Chapter XI of the Bankruptcy Act (§§ 301-399), 11 U.S.C. § 701-799, Pacific Telephone and Telegraph Company can summarily be ordered to provide service to the receiver under the telephone number currently being used by the debtor. The Referee refused to enter such an order and, on petition for review, the District Court affirmed. This appeal was then taken. We affirm.
The Telephone Company is perfectly willing to provide service to the debtor under a new number and has, indeed, submitted without opposition to an order that it do so. It rebels, however, against having to provide service under the old number until satisfactory arrangements have been made for taking care of sums owing to it by the debtor.
Rules and regulations respecting the telephone company as filed with the Public Utilities Commission of the State of California support the telephone company. They deal with conditions under which a new customer (here the receiver) may "supersede the service of a subscriber discountinuing that service." This may be done "where an arrangement acceptable to the company is made to pay outstanding charges against the service."
The receiver protests that continuation of debtor's old telephone number is of vital importance to the debtor's arrangement, as the greater part of its business is initiated by telephone calls; that to submit to the telephone company's "supersedure" requirements is to permit it to coerce preferential treatment of the debt owing to it by the debtor.
The telephone company responds that the Bankruptcy Court is without summary jurisdiction to act in this matter, since the dispute does not involve property of the debtor in possession of the receiver, and resolution of the dispute, accordingly, must be by plenary action.
Such was the holding in Slenderella Systems of Berkeley, Inc. v. Pacific Telephone and Telegraph Co., 286 F.2d...
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