Pfister v. Northern Illinois Finance Corp.

123 F.2d 543, 1941 U.S. App. LEXIS 2766
CourtCourt of Appeals for the Seventh Circuit
DecidedNovember 10, 1941
DocketNos. 7631, 7632
StatusPublished
Cited by7 cases

This text of 123 F.2d 543 (Pfister v. Northern Illinois Finance Corp.) 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
Pfister v. Northern Illinois Finance Corp., 123 F.2d 543, 1941 U.S. App. LEXIS 2766 (7th Cir. 1941).

Opinion

SPARKS, Circuit Judge.

On February 28, 1940, appellant filed his petition as a farmer-debtor for composition or extension of his debts under section 75 of the Bankruptcy Act, 11 U.S.C.A. § 203. His creditors did not accept his proposal, hence, on July 19, 1940, the debtor filed his amended petition under section 75, sub. s, seeking a moratorium. This amended petition* * was referred to the conciliation commissioner on July 20, 1940, who thereafter acted as referee under subsection s(4).

Thereafter this referee entered four orders, one on August 13, 1940, and three on September 7, 1940. The first fixed the rental and principal payments to be made by the debtor. The other orders related to the sale of what was termed perishable property. The farmer-debtor did not appeal or file a petition for review from any of these orders within the ten-day period required by section 39, sub. c, of the Bankruptcy Act, 11 U.S.C.A. § 67, sub. c. After this ten-day period had elapsed, appellant filed with the referee his two petitions for rehearing. His petition for rehearing of the order of August 13, 1940, was filed on September 16, 1940. His petition for rehearing of the orders of September 7, 1940, was filed on September 20 of that year. On September 30, 1940, the referee denied the petition for rehearing of the orders of September 7; and on November 28, 1940, he denied the petition for rehearing of the order of August 13, 1940. On October 9, 1940, the debtor filed his petition for review of the three orders of September 7; and on November 28, 1940, he filed his petition for review of the order of August 13, 1940. These petitions were dismissed by the Distiict Court on December 16, 1940, on the ground that it did not have jurisdiction to hear them. On December 30, 1940, the debtor filed his motion in the District Court to vacate the orders of December 16, 1940. This motion was denied by the District Court on January 14, 1941.

From the orders of the District Court of December 16, 1940, and the order entered January 14, 1941, denying a reconsideration of the December 16 orders, the appellant-debtor filed notices of appeal to this court on January 14. The appeals were consolidated for hearing.

Appellant first contends that section 75, sub. s,1 and not section 39, sub. c,2 governs appeals and reviews in farmer-debtor cases.

We think these appeals are governed by section 39, sub. c. It is noted that [546]*546this section deals exclusively with the review of referee’s orders by the district judge, while, the proviso of section 75, sub. s, deals, not with petitions to review such orders, but with appeals, and the objections and exceptions upon which those appeals are based. This subsection deals only with the debtor’s right to a moratorium, and the appraisal of his property for that purpose. It provides that such appraisals shall be made in all other respects, with rights of objections, exceptions and appeals, in accordance with this Act. Then follows the proviso that in proceedings under this section, either party may file objections, exceptions, and take appeals within four months from the date that the referee approves the appraisal. The debtor construes the words “this section” to mean the entire section 75 with all of its many subsections, thereby rendering section 39, sub. c, nugatory as to all matters within the purview of section 75, including the sentence next preceding the proviso in subsection s. Such construction, however, would impute to Congress an intention with which we think it should not be charged. For instance, if the orders here complained of had been entered more than four months after the referee had approved the appraisals, then, under the debtor’s construction he would have lost all right of review, or appeal.

We think it can not be said that Congress intended that section 75 should contain all procedural limitations on matters arising under the Act. See section 75, sub. n; General Order 50(11) of the General Orders in Bankruptcy, 11 U.S.C.A. following section 53, 305 U.S. 677, 711.

There seems to be no doubt that Congress enacted 39, sub. c, in order to expedite all matters within the purview of the Bankruptcy Act, and its kindred relief amendments. It has served this purpose exceedingly well, and especially is this true with respect to claims which have more or less a nuisance value. Our experience is that the debtor has benefited more often and in a greater 'degree by the provisions of this section than have the creditors, and wfi see no reason why the plain language of this very useful enactment should now be stricken down by judicial construction. Our duty is to so construe both sections, if reasonably possible, that both may be effective. This can be done by construing the word “section” in the first paragraph of section 75, sub. s, to refer only to the part of that paragraph which precedes the proviso, and we thus construe it. The orders here complained of did not arise under this paragraph, but were entered in the course of hearings, authorized under section 75, sub. s(4). Hence we think section 39, sub. c, is controlling here.

In support of the debtor’s contention he relies on Benitez Sampayo v. Bank of Nova Scotia, 313 U.S. 270, 61 S.Ct. 953, 85 L.Ed. 1324. That case merely held that the status of farmer for the purposes of proceedings under section 75 of the Bankruptcy Act must be tested by the definition of the word farmer in that section rather than by the one in section 1(17) of the Chandler Act, 11 U.S.C.A. § 1(17). We think this case in no manner supports appellant’s contention.

Appellant further contends that if section 39, sub. c is controlling, his petitions for review were filed in time. His argument in this respect is that his petitions for rehearing stopped the running of time for seeking review; that the finality of the orders of August 13, 1940, and September 7, 1940, was in each instance expunged by a petition for rehearing which he says was seasonably filed, entertained, and denied by the conciliation commissioner.

In support of this contention he relies upon Bowman v. Loperena, 311 U.S. 262, 61 S.Ct. 201, 85 L.Ed. 177; Wayne Gas Co. v. Owens-Illinois Co., 300 U.S. 131, 57 S.Ct. 382, 81 L.Ed. 557; United States v. Seminole Nation, 299 U.S. 417, 57 S.Ct. 283, 81 L.Ed. 316, and analogous cases. The facts in these cases are to be distinguished from those of the case at bar in that the petitions for rehearing were granted, the old judgment was vacated, and a new judgment entered after a rehearing on the merits (as in Wayne Gas Co. v. Owens-Illinois Co., supra), or on the ground that the petitions for rehearing were filed within the time provided for appeal, and the order complained of had never become final until the disposal of the petition (as in Bowman v. Loperena, supra). In the present case the petitions for rehearing were not filed within the time allowed for appeal, and each was denied.

Under these facts we are convinced that appellant’s contention in this respect cannot prevail. In Wayne Gas Co. v. Owens-Illinois Co., supra [300 U.S. 131, 57 S.Ct. 385, 81 L.Ed. 557], the Court

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Bluebook (online)
123 F.2d 543, 1941 U.S. App. LEXIS 2766, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pfister-v-northern-illinois-finance-corp-ca7-1941.