In Re Jon Robert Perroton, Debtor. Jon Robert Perroton v. Nancy L.G. Gray

958 F.2d 889, 26 Collier Bankr. Cas. 2d 890, 92 Daily Journal DAR 3119, 92 Cal. Daily Op. Serv. 1991, 1992 U.S. App. LEXIS 3655, 22 Bankr. Ct. Dec. (CRR) 1152, 1992 WL 41362
CourtCourt of Appeals for the Ninth Circuit
DecidedMarch 9, 1992
Docket89-15420
StatusPublished
Cited by142 cases

This text of 958 F.2d 889 (In Re Jon Robert Perroton, Debtor. Jon Robert Perroton v. Nancy L.G. Gray) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Jon Robert Perroton, Debtor. Jon Robert Perroton v. Nancy L.G. Gray, 958 F.2d 889, 26 Collier Bankr. Cas. 2d 890, 92 Daily Journal DAR 3119, 92 Cal. Daily Op. Serv. 1991, 1992 U.S. App. LEXIS 3655, 22 Bankr. Ct. Dec. (CRR) 1152, 1992 WL 41362 (9th Cir. 1992).

Opinion

CHOY, Circuit Judge:

Jon R. Perroton, proceeding pro se, appeals from the Bankruptcy Appellate Panel’s (BAP) dismissal of his appeal for fail *890 ure to pay the filing fees required by 28 U.S.C. §§ 1930(b) & (c) and from the denial of his related motion to proceed in forma pauperis pursuant to 28 U.S.C. § 1915(a). Finding that under § 1915(a) the bankruptcy court lacks the authority to waive prepayment of filing fees, we AFFIRM.

FACTUAL AND PROCEDURAL BACKGROUND

On January 3, 1989 the BAP notified Perroton that his appeal would be dismissed unless he paid the $105.00 filing fee required by §§ 1930(b) & (c) (items 9 and 16 on the schedule of fees prescribed by the Judicial Conference of the United States). On January 21, 1989 Perroton filed a motion to pursue his appeal in forma pauper-is pursuant to 28 U.S.C. § 1915(a). 1 The BAP issued an order on Februáry 15, 1989 denying Perroton’s motion and notified him that his appeal would be dismissed unless he paid the filing fee within fifteen days of the date of the order. On March 6, 1989 Perroton filed with the BAP a notice of appeal to this Circuit. Over one month later, on March 22,1989 the BAP dismissed Perroton’s appeal for failure to pay the appropriate filing fee.

On September 27, 1991 this panel ordered the Office of the United States Trustee for the Northern District of California to file an amicus brief addressing the question of whether the Supreme Court’s holding in United States v. Kras, 409 U.S. 434, 440, 93 S.Ct. 631, 635, 34 L.Ed.2d 626 (1973), also applies to the additional fees prescribed by 28 U.S.C. § 1930(b) and (c). 2 Kras held that under the Bankruptcy Act all parties were required to pay commencement fees for filing a petition for bankruptcy and that the earlier pauperis statute which contained the same language as § 1915(a), was not applicable to bankruptcy proceedings under the Act. Kras, 409 U.S. at 439-40, 93 S.Ct. at 634-35. 3 We asked that, in addition to presenting original research and analysis on this question, the Trustee critique the rationales set forth in a number of cases which either followed, limited, or rejected the holding of Kras as applied to §§ 1930(b) & (c) fees and that he examine the legislative history of 1930 to determine whether that history reveals Congress’s intent, if any, to render Kras applicable to subsections (a), (b), and/or (c). The Trustee filed his amicus brief on November 6, 1991 and Perroton failed to file a reply brief although he was given leave to file one.

ANALYSIS

1. Caselaw Regarding the Bankruptcy Court as a “Court of United States”

Under § 1915(a) “[a]ny court of the United States may authorize the commencement, prosecution or defense of any suit, action or proceeding, civil or criminal, .or appeal therein, without prepayment of fees and costs or security therefor....” 28 U.S.C. § 1915(a) (emphasis added). Section 451 contains the definitions for various *891 terms used throughout Title 28. Under that section a “court of the United States” is defined as “the Supreme Court of the United States, courts of appeals, district courts constituted by chapter 5 of this title, including the Court of International Trade and any court created by Act of Congress the judges of which are entitled to hold office during good behavior.” 28 U.S.C. § 451.

Only four reported cases have addressed whether a bankruptcy court is “court of the United States” under § 451 in the context of the bankruptcy court’s authority to act under § 1915(a). In re Broady, 96 B.R. 221 (Bankr.W.D.Mo.1988); In re Shumate, 91 B.R. 23 (Bankr.W.D.Va.1988); In re Bauckey, 82 B.R. 13 (Bankr.N.J.1988); In re Sarah Allen Home, Inc., 4 B.R. 724 (Bankr.E.D.Pa.1980). Both the Broady and Bauckey courts denied the petitioners leave to file in forma pauperis after concluding that a bankruptcy court is not a “court of the United States” under § 1915(a). The courts reasoned that a “court of the United States,” as defined by 451, is one created under Article III of the Constitution and that the provisions of Title 28 relating to a “court of the United States,” therefore, are applicable only to Article III courts. Broady and Bauckey concluded that, since bankruptcy courts are not Article III courts whose judges are entitled to hold office during good behavior, they lack the authority to waive prepayment of filing fees under § 1915(a). Broady, 96 B.R. at 222-23; 4 Bauckey, 82 B.R. at 14; 5 see Sarah Allen, 4 B.R. at 726-27. 6 Similarly, a number of courts have held that a bankruptcy court is not a “court of the United States” under § 451 and therefore lacks the authority to act under other sections of Title 28 where this phrase is used. In re Arkansas Communities, Inc., 827 F.2d 1219, 1221 (8th Cir.1987) (questionable whether a bankruptcy court is a “court of the United States” under 451 and therefore it lacks power to award attorney fees under 28 U.S.C. § 1927); In re Memorial Estates, 116 B.R. 108, 110 (Bankr.N.D.Ill.1990) (a bankruptcy court is not a “court of the United States” under 451 and thus has no power under 28 U.S.C. § 1927); In re Richardson, 52 B.R. 527, 531-32 (Bankr.W.D.Mo.1985) (same); see In re Becker’s Motor Transp., 632 F.2d 242, 246-47 (3d Cir.1980) (bankruptcy court not a “court of the United States” under 451 and therefore it is not prohibited under 28 U.S.C. § 2201 from issuing declaratory relief with respect to tax liability), cert. denied, 450 U.S. 916, 101 S.Ct.

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958 F.2d 889, 26 Collier Bankr. Cas. 2d 890, 92 Daily Journal DAR 3119, 92 Cal. Daily Op. Serv. 1991, 1992 U.S. App. LEXIS 3655, 22 Bankr. Ct. Dec. (CRR) 1152, 1992 WL 41362, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-jon-robert-perroton-debtor-jon-robert-perroton-v-nancy-lg-gray-ca9-1992.