In re Commonwealth Financial Corporation
| Decision Date | 24 February 1969 |
| Docket Number | No. 17455.,17455. |
| Citation | 408 F.2d 640 |
| Parties | In the Matter of COMMONWEALTH FINANCIAL CORPORATION and its subsidiaries, Neighborhood Finance Co., Inc., and Neighborhood Finance Co., Inc., of Pennsylvania, and Morise Thal, President of the debtors corporations, Appellant. |
| Court | U.S. Court of Appeals — Third Circuit |
Stuart H. Savett, Dilworth, Paxson, Kalish, Kohn & Levy, Philadelphia, Pa. (Adelman & Lavine, Alexander B. Adelman, Marcus Manoff, Philadelphia, Pa., on the brief), for appellant.
Paul Gonson, S.E.C., Washington, D. C. (Richard V. Bandler, Associate Regional Administrator, Edwin H. Nordlinger, Special Counsel, Henry I. Rothman, Atty., S.E.C., New York City, Philip A. Loomis, Jr., Gen. Counsel, David Ferber, Solicitor, Harvey A. Rowen, Atty., S.E.C., Washington, D. C., on the brief), for Securities and Exchange Commission.
Leon S. Forman, Wexler, Mulder & Weisman, Philadelphia, Pa., for trustees.
Before HASTIE, Chief Judge, and McLAUGHLIN and STAHL, Circuit Judges.
Certiorari Denied June 16, 1969. See 89 S.Ct. 2104.
The present controversy has arisen during the course of a corporate reorganization proceeding under Chapter X of the Bankruptcy Act. The Securities and Exchange Commission became a party to this proceeding, as authorized by section 208 of Chapter X, 11 U.S.C. § 608, by filing and obtaining the court's approval of its notice of appearance. Subsequently, the court authorized the trustees to conduct an examination of witnesses, including officers and directors of the debtor, as provided in section 167. 11 U.S.C. § 567. Thereafter, on petition by the trustees, the court authorized the Commission to participate in the section 167 examination of witnesses.
The trustees called the appellant, who is president of the debtor corporation, for examination. He refused to be sworn or to testify because of the Commission's intention to participate. The matter was submitted to the court which rejected the excuse and ordered the witness to testify. This appeal was then taken to test the right of the Commission to participate in the examination of the appellant.
Section 208 provides that after the Commission's request to appear shall have been approved by the court, "the Commission shall be deemed to be a party in interest, with the right to be heard on all matters arising in such proceeding * * *." The Court of Appeals for the Fifth Circuit has recently construed this section as authority for the examination of witnesses by the Commission at a hearing to determine whether certain shareholders should...
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...the Bankruptcy Act, 11 U.S.C. ? 567 (1964). 32 Section 208 of the Bankruptcy Act, 11 U.S.C. ? 608 (1964); In re Commonwealth Financial Corp., 408 F.2d 640 (3d Cir. 1969) (per curiam); SEC v. Krentzman, 397 F.2d 55 (5th Cir. 33 Section 167 of the Bankruptcy Act, 11 U.S.C. ? 567 (1964). 34 Or......
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In re JMV, Inc., Bankruptcy No. 86-03256F.
...& Indemnity Co., 615 F.2d 595, 598-599 (3rd Cir.1980); In re Commonwealth Financial Corp., 288 F.Supp. 786 (E.D.Pa.1968), aff'd 408 F.2d 640 (3rd Cir.) cert. denied, 395 U.S. 961, 89 S.Ct. 2104, 23 L.Ed.2d 748 (1969). See also United States v. Edelson, 604 F.2d 232 (3rd Cir.1979). Here, at ......
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National Life Ins. Co. v. Hartford Acc. and Indem. Co.
...have previously had occasion to confront this issue in In re Commonwealth Financial Corp., 288 F.Supp. 786 (E.D.Pa.1968), aff'd, 408 F.2d 640 (3d Cir. 1969), where we affirmed per curiam the action of the district court in holding that a witness in a bankruptcy proceeding could not assert a......