Gorbea v. Soto Gras

82 F.2d 634, 1936 U.S. App. LEXIS 3062
CourtCourt of Appeals for the First Circuit
DecidedFebruary 25, 1936
DocketNo. 3068
StatusPublished
Cited by2 cases

This text of 82 F.2d 634 (Gorbea v. Soto Gras) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gorbea v. Soto Gras, 82 F.2d 634, 1936 U.S. App. LEXIS 3062 (1st Cir. 1936).

Opinion

BINGHAM, Circuit Judge.

This is an appeal from an order of August 28, 1935, of the Federal District Court for Puerto Rico, sitting as a bankruptcy court, in a debtor’s proceeding under section 74 of the Bankruptcy Act, as amended (title 11 U.S.C.A. § 202). This order of August 28, 1935, vacated a prior order of March 5, 1935, enjoining the prosecution of a foreclosure suit brought by the appellee, Francisco Soto Gras, against Emilio M. Gorbea and his wife Emilia, the former being the debtor’s father, in the insular District Court of San Juan, to foreclose a mortgage on certain real estate in San Juan the equity in which was, subsequent to the bringing of the suit, transferred to the debtor.

The facts are not in dispute. It appears that on January 4, 1935, the appellee Soto Gras brought a foreclosure suit in the insular District Court of San Juan against Emilio Gorbea and his wife Emilia pursuant to article 128 of the Mortgage Law [635]*635(Revised Statutes and Codes of Puerto Rico, 1913, p. 1083, § 6812) and article 168 of the Regulations (Id. p. 1140, § 7265). January 5, 1935, that court entered an order as provided in article 170 (Id. p. 1141, § 7267) requiring the debtor to pay the mortgage indebtedness within thirty days from the day of the service of the order. Payment not having been made as required, the court entered an order or decree of February 9, 1935, in accordance with article 172 (Id. p. 1141, § 7269), directing that the mortgaged property be sold at public auction by the marshal of the court. Pursuant to the order the marshal advertised the property for sale on March 5, 1935. On February 28, 1935, the debtor, appellant, filed in the Federal District Court a petition for composition or extension under section 74 of the Bankruptcy Act, accompanied by schedules of her indebtedness and assets, and on the same day filed a petition asking that the forecloclosure proceedings be enjoined. On March 1 that court entered an order approving the petition and referring the matter to the referee; also requiring the appelleej Soto Gras, on March 4 to show-cause why the foreclosure proceedings should not be stayed. March 4, the appellee filed an answer to the order to show cause, the parties were heard on the petition and answer, and, on March 5, an order was entered staying the foreclosure proceedings. August 12, 1935, the appellee filed a motion for reconsideration based on a recent decision. In re Sorenson (C.C.A.) 77 F.(2d) 166. August 16, 1935, the debtor, appellant, filed an answer to the motion; and on August 28, 1935, the court entered the order here appealed from, vacating the injunction order of March 5, 1935, and stated as his reason for so doing the following:

“After a study of the facts of the case and the law applicable to the same, the court arrives at the conclusion that in accordance with subdivision (m), section 74 of the Bankruptcy Act [as amended by Act June 7, 1934, 11 U.S.C.A. § 202(m)], and the Mortgage Law of Puerto Rico, construed in the light of recent Federal decisions [Sorenson v. Collins (C.C.A.) 77 F.(2d) 166, 167, and Mitchell v. Citizens’ State Bank of Chicago (C.C.A.) 77 F.(2d) 168] the order of sale of the District Court of San Juan in civil case No. 22178 is a final decree and therefore this court cannot stay pending proceedings after such order constituting a final decree had been entered by the local court.”

An a])peal from this order was taken and allowed in the District Court on September 5, 1935.

The question’sought to be raised by the assignments of error is whether the order of sale in a summary foreclosure proceeding authorized by the law of Puerto Rico was a final decree within the meaning of section 74(m) of the Bankruptcy Act. But underlying this question is a more fundamental one which we are bound to consider, and that is whether this court has appellate jurisdiction to entertain this appeal. Section 225(c), title 28, U.S.C.A. (Judicial Code § 128(c), as amended), provides:

“(c) Appellate and supervisory jurisdiction in bankruptcy proceedings. The circuit courts of appeals shall also have an appellate and supervisory jurisdiction under sections 47 and 48 of Title 11, over all proceedings, controversies, and cases had or brought in the district courts under title 11, relating to bankruptcy, or any of its amendments, and shall exercise the same in the manner prescribed in those sections; and the jurisdiction * * * of the Circuit Court of Appeals for the First Circuit shall cover the court of bankruptcy in Porto Rico.” (Italics supplied.)

Sections 47 and 48, title 11 U.S.C.A., provide:

“§ 47. Same; appellate jurisdiction, (a) The Supreme Court of the United States, the circuit courts of appeal of the United States, the United States Court of Appeals for the District of Columbia, and the supreme courts of the Territories, in vacation, in chambers and during their respective terms, are invested with appellate jurisdiction of controversies arising in bankruptcy proceedings from the courts of bankruptcy from which they have appellate jurisdiction in other cases.” (Bankruptcy Act, § 24a, as amended).

“(b) The several circuit courts of appeal and the United States Court of Appeals for the District of Columbia shall have jurisdiction in equity, either interlocutory or final, to superintend and revise in matter of law (and in matter of law and fact the matters specified in section 48 of this title) the proceedings of the several inferior courts of bankruptcy within their jurisdiction. Such power shall be exercised by appeal and in the form and manner of an appeal, except in the cases men[636]*636tioned in said section 48 of thi-s title to be allowed in the discretion of the appellate court.” Bankruptcy Act 24b, as amended. (Italics supplied.)

“(c) All appeals under this section shall be taken within thirty days after the judgment, or order, or other matter complained of, has been rendered or entered.” Bankruptcy Act § 24c, as amended.

“§ 48. Appeals. (a) Appeals, as in equity cases, may be taken in bankruptcy proceedings from the courts of bankruptcy to the circuit courts of appeal of the United States and the- United States Court of Appeals for the District of Columbia and to the supreme courts of the Territories in the following cases, to wit: (1) From a judgment adjudging or refusing to adjudge the defendant a bankrupt; (2) from a judgment granting or denying a discharge; and (3) From a judgment allowing or rejecting a debt or claim of $500 or over. Such appeal shall be taken. within thirty days after the judgment appealed from has been rendered, and may be heard and determined by the appellate court in term or vacation, as the case may be.” Bankruptcy Act § 25a, as amended.

It is apparent from the facts above stated that the order or judgment in bankruptcy here appealed from is not one of the character specified in section 48(a), U.S.C. A. (section 25a of the Bankruptcy Act, as amended). We think it equally plain that, on the facts in this case, the order appealed from was not one made in a controversy arising in bankruptcy within the meaning of section 47(a), Bankruptcy Act § 24a, as amended. There was no dispute between the debtor and the creditor either as to the validity of the mortgage, the existence of a default by reason of a breach of its condition, or as to the amount due thereon.

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Bluebook (online)
82 F.2d 634, 1936 U.S. App. LEXIS 3062, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gorbea-v-soto-gras-ca1-1936.