Matter of McGuire

1 B.R. 496, 1979 U.S. Dist. LEXIS 11503
CourtDistrict Court, W.D. Pennsylvania
DecidedJune 25, 1979
DocketBankruptcy Nos. 78-202 to 78-205, Civ. A. No. 79-22 Erie
StatusPublished
Cited by7 cases

This text of 1 B.R. 496 (Matter of McGuire) is published on Counsel Stack Legal Research, covering District Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Matter of McGuire, 1 B.R. 496, 1979 U.S. Dist. LEXIS 11503 (W.D. Pa. 1979).

Opinion

*497 OPINION

KNOX, District Judge.

On August 10, 1978, a creditor’s petition in bankruptcy was filed by three alleged creditors of the above named bankrupt. The matter was thereupon referred by Chief Judge Weber of this Court to the Honorable William B. Washabaugh, Jr., Bankruptcy Judge. At the same time, application was made for service by publication. It was stated therein: “Upon information and belief the U.S. Marshal for the Western District of Pennsylvania will not be able to effect personal service by reason of the fact that the alleged bankrupts have fled the jurisdiction vacating their home or office and are not occupying the house designated at the forwarding address with the United States Postal Service.” The Deputy Marshal attempted service and was unable to effect the same. His return dated August 11, 1978, shows: “Left Oil City, Pennsylvania 7/1/78”.

Service by publication was duly effected by advertising in the Oil City Derrick and the Erie County Legal Journal on August 18, 1978. It was also ordered that copies of the summons and involuntary petition be sent to the defendants by certified mail, return receipt requested, the addresses being given as 825 Grandview Road, Oil City, Pennsylvania, for all the parties and Paula McGuire and Doris R. McGuire at 115 Salem Drive, Ithaca, New York. An affidavit was filed that the notices were deposited in certified mail on August 11, 1978, with copies of the receipts for the mailing being duly filed. A subsequent affidavit dated August 30, 1978, shows as to service by certified mail, only two receipts were received from John A. McGuire and Webb Oil Company. It appears that notice of hearing for appointment of receiver to be held August 28, 1978, were sent by ordinary mail to all the above named defendants. Paul and Norris’ addresses were given as Ithaca, New York.

On September 16, 1978, Paula McGuire signed and swore to in the District of Columbia a motion for appointment of counsel and to proceed in forma pauperis. The closing paragraph of this motion reads as follows:

“On or about July 1, 1978, I along with John F. McGuire and Norris R. McGuire, left Oil City in personal fear that some of the people who had previously been involved in business activities with my husband might cause personal harm to myself and/or my family. Since that time, I have been with my husband and my sons, at the suggestion of my husband’s criminal lawyer while problems related to my husband’s businéss activities, both criminal and civil, have been worked upon. During this period of time, my husband was hospitalized at the Georgetown Medical Center, during the course of which it was determined that he suffers from inoperable terminal abdominal cancer. During this period of time I was advised of the pending proceeding and have been unable to do anything about it because of *498 potential conflicts of interest between my husband and my son, Norris, and my present state of poverty.”

The defendants were adjudicated bankrupt on August 28, 1978.

The motion for appointment of counsel and to proceed in forma pauperis was denied by order of November 16, 1978, of which more hereafter.

The property was thereafter sold to a third party for the sum of $75,000. After due no.tice and a hearing held November 14, 1978, the sale was confirmed over the objections of Paula McGuire and Norris McGuire, the orders with respect to confirmation and denial of objections being entered November 16, 1978.

On November 13, 1978, Paula McGuire and Norris R. McGuire filed motions to dismiss or to set aside the adjudication of involuntary bankruptcy. These motions were denied orally on the record by the bankruptcy judge at the hearing of November 14,1978, and thereafter were denied by written orders filed November 16, 1978. Also, on November 13, 1978, objections to the sale of real estate were filed by Paula McGuire, alleging lack of due process and no proper notice.

By the order of November 16, 1978, the bankruptcy judge denied the objections of Paula and Norris McGuire to the sale of real estate and denied their motion to set aside the adjudication in bankruptcy and for appointment of counsel and for leave to proceed in forma pauperis. The bankruptcy judge stated that the previous orders of November 14, 1978, were confirmed and reissued for reasons announced at the hearing, to wit: (1) Paula McGuire has waived notice and shown that she had received such notice in motion for appointment of counsel to proceed in forma pauperis. She not having objected to the proceedings or attempted to appeal from the adjudication, the order for the adjudication has become final and unappealable. (2) The motion for appointment of counsel was denied for the reason that there were no funds in the bankruptcy court to appoint counsel for bankrupts in bankruptcy proceedings or any funds to provide for their payment. Persons who are indigent should obtain counsel to represent them from legal service agencies.

An order was entered November 16,1978, confirming the private sale of real estate free and divested of liens.

It was noted that in U. S. v. Kras, 409 U.S. 434, 93 S.Ct. 631, 34 L.Ed.2d 626 (1973), the requirement of payment of filing fees under the Bankruptcy Act was held constitutional.

On November 27,1978, attached to a petition for review, which petition for review was later altered to read, “Notice of Appeal”, the petitioners being appellants Paula McGuire and Norris R. McGuire sought a stay of proceedings. These notices of appeal were filed Monday November 27, 1978, of which more hereafter. On November 30, 1978, the bankruptcy judge entered an order denying motion for stay of proceedings in which he called attention to the fact that the order confirming the sale had been made on November 14,1978, and a question appeared as to whether an appeal filed November 27, 1978, was timely. No objection to adjudication of the bankrupts and to the jurisdiction of the court had been made until November 13,1978, when the time for appeal from the order of adjudication of August 28, 1978, had long expired. The bankruptcy judge called attention to § 2(a)(7) of the Bankruptcy Act 11 U.S.C. § 11(a)(7) and to Bankruptcy Rule 915(a) and therefore denied the petition for stay.

As noted, the documents entitled: “Petition for review and Notice of Appeal” on behalf of Paula McGuire and Norris McGuire were filed November 27, 1978 and duly docketed in the Clerk’s Office. The appellees being the trustees have duly filed motions to quash such appeals.

After briefs and arguments which were filed • pursuant to orders of the court, the court called attention to the fact that various allegations of fact set forth in the briefs did not appear to be supported by the record and gave opportunity to file such supporting material. No such supporting ma *499 terial has since been filed and the parties have written to the court letters indicating they have no additional matters to file.

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
1 B.R. 496, 1979 U.S. Dist. LEXIS 11503, Counsel Stack Legal Research, https://law.counselstack.com/opinion/matter-of-mcguire-pawd-1979.