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Holden v. Stratton
191 U.S. 115
SCOTUS
1903
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Mr. Chief Justice Fuller

delivered the opinion of the court.

It will be perceived that the jurisdiction of the Circuit Court of Appeals was invoked on an original рetition under sec *117 tion 246 of the bankruptcy law, which provides The several Circuit Courts of Appeal shall have jurisdiction in equity, either interlocutory or final, to. superintend and revise in matter of lаw the proceedings of the several inferior courts-of bankruptcy within their jurisdiction. Such power shall be exercised on due notice and petition by any party aggrieved.”

This supervisory jurisdiction in matter of law was conferred on the Circuit Courts by the act of March 2,1867,14 Stat. 517, 518, c. 176, § 2; Rev. Stat. § 4986, ‍​‌​‌​​‌​​​‌​​​‌​‌‌​​​‌​‌​​‌‌​‌​​‌‌​‌‌‌​​​‌​‌​​‌‌‍and it was sеttled tinder that act that appeals to this court did not lie 'from the decisions of the Circuit Courts in the exercise of that jurisdiction. Morgan v. Thornhill, 11 Wall. 65; Conro v. Crane, 94 U. S. 441. The ruling is‘decisive here unless the present act elsewhere otherwise provides. But this it does not do, the special and sum-r mary character of thé revision contemplated being substantially the same as in the prior act, and the provision for appеals not embracing appeals from decrees in revision.

■ Section 25a, 30 Stat. 544, c. 541, July 1, 1898, provides • “that appeals, as in equity cases, may be taken in bankruptcy proceedings from the courts of bankruptcy to the Circuit .Court ■ of Appeals-of the United States, and to the Supreme Court of the Territories, in the following cases, to wir, (1) from a judgment adjudging or refusing to adjudge the defendant a bankrupt; (2) from а judgment granting or denying a discharge; and (3) from a judgment allowing or rejecting a debt or claim of five hundred dollars or over.” ■ '

. And section 256 for appeals to this court “from any final-decision of a Cоurt of Appeals, allowing or rejecting a claim under this act,” where the amount in controvеrsy exceeds the sum of two thousand dollars, and the question involved was ’ one which might have been taken from the highest court of a State ‍​‌​‌​​‌​​​‌​​​‌​‌‌​​​‌​‌​​‌‌​‌​​‌‌​‌‌‌​​​‌​‌​​‌‌‍to the Supreme Court of the United States; or where some justice of the Supreme Court certifies that “in his opinion the determination of the question or questions involved in the. allowance or rejection of such claim is essential to a uniform cоnstruction of this act throughout the United States.”

*118 This case was not taken to the Court of Appeals by appeal, as in equity cases, to be reexamined on the' facts as well as the law, nоr could it have been, for it was not one of the cases enumerated in section 25a. The order of the Circuit Court was not "a judgment .allowing or rejecting a debt or claim of five hundred dollars or over,” or the revising order of the Circuit Court of Appeals, “a final decision, allowing or rejеcting a claim,” within the intent and meaning of either subdivision a or b. By section 2, subd. 2, courts of bankruptcy are vestеd with the power to “allow claims, disallow claims, reconsider allowed or disallowed claims, and allow or disallow them against bankrupt estates;” and section fifty-seven comprehensivеly covers the subject of the proof and allowance of claims, treating them as moneyed demands.

And while the word “ claim” is used in its signification of the demand or assertion of a right in subd. 11 of section 2, in respect of “ all claims oí bankrupts to their exemptions,” it is also used in many parts of ‍​‌​‌​​‌​​​‌​​​‌​‌‌​​​‌​‌​​‌‌​‌​​‌‌​‌‌‌​​​‌​‌​​‌‌‍the аct, and, as we think, in section 25, as referring to debts, (which by sub-sec. 11 of section 1 include “any debt, demand оr claim provable in bankruptcy,”) presented for proof against estates in bankruptcy. Hutchinson v. Otis, 190 U. S. 552, 555; In re Whitener, 105 Fed. Rep. 180; In re Columbia Real Estate Co., 112 Fed. Rep. 643, 645.

The allowance or rejection of a debt or claim is a part of the ‘bankruptcy prоceedings, and not an independent suit, and under the act of 1867 it was held that this court had no jurisdiction tо review judgments of the Circuit Courts dealing with the action of the District Courts in such allowance or rejеction because they were not final. Wiswall v. Campbell, 93 U. S. 347; Leggett v. Allen, 110 U. S. 741. The jurisdiction now given is carefully restricted and cannot be expanded beyond the letter of the grant. It is an exception to the general rule as to appeals and writs of error obtaining from the foundation of our judicial system. McLish v. Roff, 141 U. S. 661.

The distinction between steps in bankruptcy proceedings proper ‍​‌​‌​​‌​​​‌​​​‌​‌‌​​​‌​‌​​‌‌​‌​​‌‌​‌‌‌​​​‌​‌​​‌‌‍and controversies arising out of thе settlement of the *119 estates of bankrupts is recognized in sections .23, 24 and 25 of the present act, and the provisions as to revision in matter of law and appeals were framed and must be сonstrued, in view of that distinction. Denver First National Bank v. King, 186 U. S. 202; Elliott v. Toeppner, 187 U. S. 327, 333, 334. Section 6 of the act of March 3, 1891, has no application, as that refers to eases.carried to the Circuit Court of-Appeals by appeal or writ of error. But in view of the. terms of that act and of the. nature of the writ, we have held that under a reаsonable ^construction of subdivision d of section 25, certiorari lies to decrees in revision. Bryan v. Bernheimer, 175 U. S. 724; S. C., 181 U. S. 188; Mueller v. Nugent, 180 U. S. 640; S. C., 184 U. S. 1; Louisville Trust Co. v. Comingor, 181 U. S. 620 ; S. C., 184 U. S. 18. In the case first cited it is pointed out that the Circuit Court of Apрeals treated the case as if before it on a petition for revision ‍​‌​‌​​‌​​​‌​​​‌​‌‌​​​‌​‌​​‌‌​‌​​‌‌​‌‌‌​​​‌​‌​​‌‌‍though it had been carried there by appeal, and we considered the decree as rendered in the exercise of the supervisory power. 181 U. S. 192, 193.

Appeal dismissed.

Case Details

Case Name: Holden v. Stratton
Court Name: Supreme Court of the United States
Date Published: Nov 16, 1903
Citation: 191 U.S. 115
Docket Number: 38
Court Abbreviation: SCOTUS
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