Blair v. Coen

170 F.2d 830, 1948 U.S. App. LEXIS 3116
CourtCourt of Appeals for the Seventh Circuit
DecidedNovember 9, 1948
DocketNo. 9538
StatusPublished
Cited by2 cases

This text of 170 F.2d 830 (Blair v. Coen) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Blair v. Coen, 170 F.2d 830, 1948 U.S. App. LEXIS 3116 (7th Cir. 1948).

Opinion

MAJOR, Circuit Judge.

This is an appeal from an order of the District Court, entered October 1, 1947, dismissing debtor’s petition in a proceeding under Sec. 75 of the Bankruptcy Act, [831]*83111 U.S.C.A. § 203. The court held it was without jurisdiction for two reasons, (1) that the debtor did not have any property interest in the land scheduled at the time of the commencement of the proceeding which could be administered under Sec. 75, and (2) that the debtor was not a farmer within the meaning of sub. r, of said section at the time of the filing of her petition.

The debtor and her attorney appeared before a Conciliation Commissioner on February 19, 1942, for help and assistance, and the Commissioner prepared a petition and schedules for a composition and extension of time to pay debts. She failed to sign the petition and Schedules A and B. She did sign the separate sheets of the schedules, and she signed the purported oath given by the Conciliation Commissioner to the petition and to the schedules. At that time she paid the Commissioner the necessary filing fee.

The papers were sent to the Clerk of the District Court on March 5, 1942, but the Commissioner neglected to enclose the filing fee. The papers were returned to the Conciliation Commissioner on March 7, 1942 by the Qerk with the statement that (1) there was no fee enclosed, (2) that the petition and schedules were not signed, (3) no notary seal had been placed on any of the documents. Both the Conciliation Commissioner and her attorney endeavored to locate the debtor but were unable to do so for a period of more than four months. Finally, when located, she supplied her signature which had formerly been omitted from the petition and schedules, which were then sent by her attorney to the court for filing. At the same time the Conciliation Commissioner sent to the Clerk the filing fee which he had previously failed to remit. Neither the petition nor the schedules were verified anew and bore the same date as when originally executed. The petition and schedules were filed by the Clerk on June 24, 1942.

The debtor in Schedule B claimed as her property certain described land, and with reference thereto stated: “The above land subject to mortgage to Ed Rudqlphi, which was foreclosed in the Circuit Court of Richland County, Illinois, and sold under decree of that couit the sale having been March 15th, 1941, and the Equity or [of] Redemption only being owned by Petitioner.”

As the schedule notes, the property claimed was sold under a mortgage foreclosure sale March 15, 1941, and a certificate of purchase was issued to the purchaser, Ed Rudolphi. Under the Illinois law, the debtor (mortgagor) had one year in which to redeem from such sale and her creditors had an additional three months. No redemption was had and her right to redeem expired on March 15, 1942, and that of her creditors on June 15, 1942. On June 16, 1942, Rudolphi presented his certificate of purchase to the Master and requested a deed, which was issued to him on July 9, 1942 and recorded the following day, July 10, 1942. Subsequently, Rudolphi assigned his interest in the property to the instant appellee. The debtor’s contention that she was the owner of a property interest of which the court acquired jurisdiction is predicated solely upon the interest which she claims by reason of her right of redemption. This in turn is dependent, so we think, upon the date on which the court acquired jurisdiction, that is whether it was on February 19, 1942, when the debtor first appeared before the Conciliation Commissioner, or June 24, 1942, when her petition and schedules were filed with the Clerk of the court. As already noted, the period of redemption expired prior to the latter date. Much is said relative to the defective petition and schedules as she originally left them with the Conciliation Commissioner. We are of the view that we need not decide whether her petition and schedules were of no effect because of her failure to sign or whether it was necessary that'the petition be signed •under oath, and if so, whether the Conciliation Commissioner was an officer authorized to administer the oath. The fact is that the petition was not filed with the Clerk of the court until more than four months later and rhat irrespective of the reason for this delay, the question remains as to whether the court acquired jurisdiction of the debtor and her property on February 19, 1942 or June 24, 1942. The debtor’s contention that, the court acquired [832]*832jurisdiction of her property on February 19, when her petition and schedules were left with the Conciliation Commissioner is predicated upon the language of sub. n of the Act, which provides:

“The filing of a petition or answer with the clerk of court, or leaving it with the conciliation commissioner for the purpose of forwarding same to the clerk of court, praying for relief under this section, shall immediately subject the farmer and all his property, wherever located, for all the purposes of this section, to the exclusive jurisdiction of the court * *

No case is cited and we know of none where the precise question involved has been raised or decided. There are many cases where the filing of the petition with the Clerk of the court has been treated as the time of the acquirement by the' court of jurisdiction of the debtor’s property. Typical of such cases is Kalb v. Feuerstein, 308 U.S. 433, 60 S.Ct. 343, 84 L.Ed. 370, where the court discusses and interprets sub. n. On page 442, of 308 U.S., on page 348 of 60 S.Ct., the court states:

"* * * that no proceedings after the filing of the petition should be instituted, or. if instituted prior to the filing of the petition, should not be maintained in any court or otherwise.”

On the following page, the court states:

“In harmony with the general plan of giving the farmer an opportunity for rehabilitation, he was relieved — after filing a petition for composition and extension— of the necessity of litigation elsewhere and its consequent expense.”

There is some basis for the argument that the language upon which the debtor relies standing alone furnishes at least colorable support for her contention. Even so, however, such support appears to be more than offset by another provision in the same paragraph, which states:

“In all cases where, at the time of filing the petition, the period of redemption has not or had not expired * * * the period of redemption shall be extended * * * for the period necessary for the purpose of carrying out the provisions of this section.”.

Thus, according to this language, the period of redemption is extended only where such period has- not expired “at the time of filing the petition”. There is nothing in this language to indicate that it was the intention of Congress to extend the period of redemption upon “leaving it [petition] with the conciliation commissioner”. This language is directly applicable to the instant situation where the only property claimed was the right of redemption.

The general orders in bankruptcy promulgated by the Supreme Court, which have the effect of law, indicate that jurisdiction is acquired when the debtor’s petition is filed with the Clerk of the court. Order 50(2) relating to farm debtor proceedings provides:

“The clerk shall not accept the petition unless it is accompanied by the filing fee and the schedules, which shall be in duplicate.

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Cite This Page — Counsel Stack

Bluebook (online)
170 F.2d 830, 1948 U.S. App. LEXIS 3116, Counsel Stack Legal Research, https://law.counselstack.com/opinion/blair-v-coen-ca7-1948.