Etheridge v. Arkansas Loan & Thrift Corp.

347 F. Supp. 1023, 1972 U.S. Dist. LEXIS 15694
CourtDistrict Court, W.D. Arkansas
DecidedJanuary 5, 1972
DocketNos. FS-68-C-37, FS-68-C-57, FS-68-C-63, FS-68-C-66, FS-69-C-16, FS-70-C-15 and FS-70-C-16
StatusPublished
Cited by1 cases

This text of 347 F. Supp. 1023 (Etheridge v. Arkansas Loan & Thrift Corp.) is published on Counsel Stack Legal Research, covering District Court, W.D. Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Etheridge v. Arkansas Loan & Thrift Corp., 347 F. Supp. 1023, 1972 U.S. Dist. LEXIS 15694 (W.D. Ark. 1972).

Opinion

MEMORANDUM AND ORDER

JOHN E. MILLER, Senior District Judge.

On December 30, 1971, the plaintiffs in the above cases filed identical motions [1024]*1024in which they moved that the undersigned Judge “disqualify himself from these proceedings for the reason of personal bias and/or prejudice against the plaintiffs and/or in favor of the defendant, Lem C. Bryan, Receiver.”

The affidavit filed with the motion states that the Judge is prejudiced in favor of the Receiver of Arkansas Loan & Thrift, because of the nature of the equity receivership proceedings over which he has presided since March 13, 1968, and because he has become so closely involved with the Receiver in his efforts to liquidate the assets of Arkansas Loan & Thrift that he “has developed a personal bias against the plaintiffs herein and others similarly situated who are attempting to assert their legal rights in this or similar actions now pending before this court.” The affidavit further states that the Receiver’s motion to intervene and motion for summary judgment were filed and prepared “at the suggestion, behest, and influence and pursuant to encouragement of and by the Honorable John E. Miller,” and that the Judge’s “deep involvement with the equity receivership proceedings, his concern for the accomplishments of the Receiver therein, his desire for a speedy conclusion of said proceedings, and his active participation as advisor and counselor to the Receiver and/or his attorneys in said proceedings and related proceedings, including this case, has caused the said Honorable John E. Miller to develop a personal bias against the plaintiffs and similar plaintiffs, together with a strong prejudice in favor of the aforesaid Receiver, all to the extent that these plaintiffs cannot obtain a fair and impartial determination of their rights unless another judge is assigned to conduct all further proceedings.”

The motion is based on 28 U.S.C.A. § 144, which reads in part as follows:

“Whenever a party to any proceeding in a district court makes or files a timely and sufficient affidavit that the judge before whom the matter is pending has a personal bias or prejudice either against him or in favor of any adverse party, such judge shall proceed no further therein, but another judge shall be assigned to hear such proceeding.”

The motion is timely and meets all the procedural requirements set out in 28 U.S.C.A. § 144.

It is the basic premise of the plaintiffs that the Judge’s prejudice and bias in this matter arise from his position as presiding Judge over the equity receivership of Arkansas Loan & Thrift. Numerous decisions of the Supreme Court of the United States and the Courts of Appeal, including the Eighth Circuit, establish that a claim of bias or prejudice based on judicial knowledge from prior hearings or cases is not sufficient grounds for disqualification of a judge.

In United States v. Beneke (8 Cir. 1971), 449 F.2d 1259, the court, at page 1260, stated:

“This contention is without merit since the bias or prejudice alleged did not stem from an extrajudicial source, but rather from what the judge learned in his judicial capacity. 28 U.S.C. § 144 requires that the bias necessary to disqualify must ‘stem from an extrajudicial source and result in an opinion on the merits on some basis other than what the judge learned from his participation in the case.’ ” (Citing cases.)

In United States v. Anderson (8 Cir. 1970), 433 F.2d 856, the court, at page 860, said:

“The law is that a court’s ruling on a question of law does not show the personal bias required for disqualification. Knoll v. Socony Mobil Oil Company, 369 F.2d 425 (10th Cir. 1966), cert. denied, 386 U.S. 977, 87 S.Ct. 1173, 18 L.Ed.2d 138, reh. denied, 386 U.S. 1043, 87 S.Ct. 1490, 18 L.Ed.2d 618 (1967); Riojas v. Turner, 304 F.Supp. 559 (D.Utah 1969).”

In Hanger v. United States (8 Cir. 1968), 398 F.2d 91, the court at page 101, quoting from United States v. Grin[1025]*1025nell Corp., 384 U.S. 563, 583, 86 S.Ct. 1698, 1710, 16 L.Ed.2d 778 (1966), said:

“ ‘The alleged bias and prejudice to be disqualifying must stem from an extrajudicial source and result in an opinion on the merits on some basis other than what the judge learned from his participation in the case.’ ”

In Barry v. Sigler (8 Cir. 1967), 373 F.2d 835, the court at page 836 said:

“ ‘The section [144] is directed to personal bias, which means an attitude of extrajudicial origin. A mere showing of prior judicial exposure to the present parties or questions will not invoke the section.’ ” (Citing Lyons v. United States (9 Cir. 1963), 325 F. 2d 370, 376, cert. denied, 377 U.S. 969, 84 S.Ct. 1650, 12 L.Ed.2d 738. Court held affidavits legally insufficient.)

In Barnes v. United States (9 Cir. 1956), 241 F.2d 252, the court at page 254 said:

“The conduct of the trial judge and his rulings in a former case are not the basis for disqualification here. All of the rulings in former cases, as well as the attitude of the judge, could have been raised upon appeal in such cases. Because a judge has decided one case against a litigant is no reason why he cannot sit in another.”

Also, see, Securities & Exchange Commission v. Bartlett (8 Cir. 1970), 422 F. 2d 475; Hodgdon v. United States (8 Cir. 1966), 365 F.2d 679; Lyons v. United States (9 Cir. 1963), 325 F.2d 370, cert. denied, 377 U.S. 969, 84 S.Ct. 1650, 12 L.Ed.2d 738.

Each of the cases was filed subsequent to the appointment of the Receiver with orders to proceed to liquidate Arkansas Loan & Thrift, and the cases have been pending for an unusual time. Case No. FS-68-C-37 was filed June 26, 1968; No. FS-68-C-57 was filed August 19, 1968; No. FS-68-C-63 was filed September 3, 1968; No. FS-68-C-66 was filed September 5, 1968; No. FS-69-C-16 was filed February 18, 1969; and No. FS-70-C-15 and No. FS-70-C-16 were filed February 11, 1970.

The Receiver has proceeded with diligence and has collected and remitted to the depositors, including the plaintiffs, 46.889074 percent of their investment in Arkansas Loan and Thrift. The pendency of the suits above referred to are hindering and delaying further collections by the Receiver and delaying the closing of the receivership.

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

Related

INVESTORS THRIFT CORPORATION v. Sexton
347 F. Supp. 1207 (W.D. Arkansas, 1972)

Cite This Page — Counsel Stack

Bluebook (online)
347 F. Supp. 1023, 1972 U.S. Dist. LEXIS 15694, Counsel Stack Legal Research, https://law.counselstack.com/opinion/etheridge-v-arkansas-loan-thrift-corp-arwd-1972.