Bank of Ravenswood v. Johnson

143 F. 463, 74 C.C.A. 597, 1906 U.S. App. LEXIS 3757
CourtCourt of Appeals for the Fourth Circuit
DecidedFebruary 6, 1906
DocketNo. 621
StatusPublished
Cited by4 cases

This text of 143 F. 463 (Bank of Ravenswood v. Johnson) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bank of Ravenswood v. Johnson, 143 F. 463, 74 C.C.A. 597, 1906 U.S. App. LEXIS 3757 (4th Cir. 1906).

Opinion

PURNELL, District Judge.

The counsel in this case did not appear at the hearing, but George W. Johnson, referee and special master, appeared, read the record and proceeded to argue the case when he was stopped by a question from one of the judges sitting. This was a petition to revise and superintend in matters of law a proceeding in bankruptcy, and the writer takes occasion to say that the record is exceedingly unsatisfactory, and the conduct of the case on the part of the contesting creditors not commendable in the eyes of the court. It is not satisfactory, for instance, for counsel to say to this court that the facts appear in the record, instead of making a succinct statement of facts, especially when they do not appear at the hearing. The District Judge says, in an opinion filed, which is the best statement of the case to be found in the record:

“In compliance with tbis order [referring a petition for discharge to the referee as special master to take the testimony and find the facts], the referee on the 13th day of February, 1905, commenced the taking of testimony with a view to ascertaining such facts and up to April 18, 1905, had made a record of 342 full typewritten pages, consisting largely of wholly immaterial matters, captious objections, remarks of counsel, reiterations of the same questions, and demands, to such an extent as to trespass to the last limit upon the patience of any court required to read it. It is absolutely safe to say, in my judgment, that every fact adduced in fhis record that in the remotest degree could be deemed material could and ought to have been clearly and fully presented in a record of 50 such typewritten pages.
“This criticism, kindly made, is justified by the fact, that the end of it has by no means, apparently, been as yet reached, for these ‘depositions’ stand uncompleted and the referee’s duty unperformed, because, - on petition and application of the protesting creditors, an order was entered on the-day of April, 1905, in the nature of a rule, by this court, against said referee, to cause him to answer and show cause for his alleged misconduct in refusing to admit testimony offered, and refusing to certify for review questions arising before him touching the admissibility of such evidence, and by his rulings practically causing certain witnesses to refuse both to answer certain questions and produce certain written evidence. To this petition and rule the referee has made answer and has certified the evidence taken, and this matter above is now before the court for its consideration.
“It seems that the parties, all represented by counsel, started out under the idea that the referee was to sit as a court and determine upon what testimony was admissible and what was inadmissible, and that they were to be bound by his rulings in this particular. A large amount of the testimony was taken under this understanding,’ when, it appears, counsel for the opposing creditors objected and supporting the objection with authorities that convinced the referee that he had been proceeding wrongly, he reversed his ruling, and determined that notwithstanding his opinion and judgment was [465]*465against the admissibility of certain evidence he would nevertheless permit the witness to answer the questions and allow the evidence to go to the court. To correct the error of his first method of procedure the referee recalled the witness Prewett, about whose testimony the trouble had arisen, and allowed all rejected matter to be enquired of under his statement and ruling that the objection should be sustained. Thereupon, the witness Prewett refused* to produce certain books demanded of him, and the referee refused to compel him to do so and further refused to certify the matter to the court for revision, on the ground that, before so certifying, all the testimony should be taken and all questions of objection certified at one and the same time. It should be added that the protesting creditors insisted that his expressing his opinion touching the admissibility of the testimony encouraged witnesses to refuse to answer and produce such' testimony. Thus it will be seen that substantially three practical points have arisen touching the practice to be observed by the referee in taking testimony before him. (1) How far has he the power to pass upon and determine the admissibility of evidence presented to him? (2) When is he required to certify objections made to his rulings to the court for revision? (3) What power has he to determine as to whether a witness is recalcitrant and in contempt or not, and, if held to be so, what proceeding should be taken against him?”

We cannot concur in the decision of the District Court that a referee “acting in his character as referee or as special commissioner has the right to exclude evidence which he deems inadmissible.” For this holding In re Wilde’s Sons, 11 Am. Bankr. Rep. 714, 131 Fed. 142, is cited, and the learned judge states there are many cases to the contrary. Even if the conflicting decisions are considered, the general orders passed by the Supreme Court are controlling; they have the force of the statute, are made pursuant to express authority in the statute. The same question was raised in Re Sturgeon, 14 Am. Bankr. Rep. 681, 139 Fed. 608 (Circuit Court of Appeals, Second Circuit), in which the court says:

“Per Curiam. Under General Order No. 22 (89 Fed. x; 18 Sup. Ct. vii), the duty of the referee is to receive the evidence which is offered, to note objections and to record the evidence; and if either party persists in offering incompetent or irrelevant matter in evidence, the other party has a remedy, because the rule provides that ‘the court shall have power to deal with the costs of incompetent, immaterial, or irrelevant depositions, or parts of them, as may be just.’ The equity practice is to be followed by referees. The order directs him to proceed as referee. The referee must take all the evidence and note objections.”

And the latter clause of General Order 22 of the Supreme Court !(89 Fed. x; 18 Sup. Ct. vii) provides:

“The referee shall note upon the deposition any question objected to, with his decision thereon; and the court shall have power to deal with the costs of incompetent, immaterial or irrelevant depositions, or parts of them, as may be just”

No amount of argument could make the matter plainer. Any one who will can understand. To the same effect the equity rule and the decision in Re Natelle De Gottardi, 7 Am. Bankr. Rep. 723, 114 Fed. 328; Dressel v. N. St. Lumber Co., 119 Fed. 531, 9 Am. Bankr. Rep. 541, In re Covington, 110 Fed. 143, 7 Am. Bankr. Rep. 373, Blease v. Garlington, 92 U. S. 1, 23 L. Ed. 521; Mears v. Lockart, 94 Fed. 275, 36 C. C. A. 239. The Philadelphian, 60 Fed. 425, 10 C. C. A. 127, 1 Gould & Tucker’s Notes (2d Ed.) 200, 259, 102. The referee [466]*466and special master followed a different rule at first, but afterwards reversed his order, took down all the testimony, noted objections with his rulings thereon, and certified the record thus made to the District Court. The reference was to relieve the court and under the authorities this was the proper course. The petitioners .have nothing to complain of.

But suppose the general orders of the Supreme Court had not provided as rule 22 (89 Fed. x,.18 Sup. Ct.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

In Re Penn Table Co.
26 F. Supp. 887 (S.D. West Virginia, 1939)
In re Harrison Bros.
197 F. 320 (M.D. Pennsylvania, 1912)
In re Isaacson
175 F. 292 (E.D. New York, 1909)

Cite This Page — Counsel Stack

Bluebook (online)
143 F. 463, 74 C.C.A. 597, 1906 U.S. App. LEXIS 3757, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bank-of-ravenswood-v-johnson-ca4-1906.