In Re Jon Robert Perroton, Debtor. Jon Robert Perroton v. Nancy L.G. GrayIn Re Jon Robert Perroton, Debtor. Jon Robert Perroton v. Nancy L.G. Gray
Jon R. Perroton, proceeding
pro se,
appeals from the Bankruptcy Appellate Panel’s (BAP) dismissal of his appeal for fail
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
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,
ANALYSIS
1. Caselaw Regarding the Bankruptcy Court as a “Court of United States”
Under
Only four reported cases have addressed whether a bankruptcy court is “court of the United States” under
Shumate
is the only case holding that a bankruptcy court is a “court of the United States” under
In reaching its conclusion the
Shumate
court discussed the decisions in
Sarah Allen, In re Palestino,
2. Examining the Statutory Language
When interpreting a statute a court first must examine the statutory language.
United States v. Turkette,
It is unclear from the plain language of
3.
Legislative History of
A review of the legislative history of
Although the available legislative materials relating to the initial passage of the section provide no insight in this regard,
13
a 1978 amendment to
The fact that Congress initially amended
4. Other Arguments
The second part of the
Shumate
court’s rationale for why a bankruptcy court has authority to waive fees also is flawed.
Shumate,
involved a debtor seeking to appeal an order of the bankruptcy court
in forma pauperis,
arguing that the need to proceed
in forma pauperis
on appeal from an adversary proceeding is related closely to having those rights adjudicated by the trial court, and to permit
in forma pauper-is
status in the initial proceeding, but not
Although the rules promulgated by the Judicial Conference may be inconsistent, that does not change the fact that, since a bankruptcy court is not a “court of the United States” within the meaning of
A question also can be raised as to why Congress included the language “[notwithstanding
A number of courts also have reasoned that the absence of the “notwithstanding” language in
Finally, even if a bankruptcy court is not a “court of the United States” under
CONCLUSION
Thus, because the bankruptcy court is not a “court of the United States” under the definition of that phrase contained in
AFFIRMED.
Notes
. Title
Any 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, by a person who makes affidavit that he is unable to pay such costs or give security therefor. Such affidavit shall state the nature of the action, defense or appeal and affiant’s belief that he is entitled to redress....
.
(a) Notwithstandingsection 1915 of this title [28], the parties commencing a case under title 11 shall pay to the clerk the following fees....
(b) The Judicial Conference of the United States may prescribe additional fees in cases under title 11 of the same kind as the Judicial Conference prescribes under section 1914(b) of this title.
(c)Upon the filing of any separate or joint notice of appeal or application for appeal or upon the receipt of any order allowing, or notice of the allowance of, an appeal or a writ of certiorari $5 shall be paid to the clerk of the court, by the appellant or petitioner....
.The
Kras
court also held that the requirement that the fee for filing a bankruptcy petition be paid before discharge could be granted was not a denial of due process (or equal protection) because the right to discharge in bankruptcy was not a fundamental right entitled to due process under the Constitution.
Id.
at 444-46,
. In
Broady
the debtor requested leave to prosecute her appeal
in forma pauperis
and to not pay the filing fee required for the notice of appeal.
Broady,
. The
Bauckey
court addressed the question of whether a debtor could
initiate
a bankruptcy proceeding
in forma pauperis
under the Bankruptcy Code. The court offered two reasons for declining the request. The court first noted that the Supreme Court's holding in
Kras
and the language of
. Sarah Allen
addressed whether an indigent
creditor
who brings an
adversary complaint
in a pending bankruptcy proceeding could proceed
in forma pauperis
(under either the Bankruptcy Act or the Bankruptcy Code). The court decided the question on a constitutional ground. It concluded that
Kras's
constitutional holding did not control and that to deny these parties, who were seeking to protect their property through an adversary proceeding, access to the court simply because of their inability to pay the filing fees would be an unconstitutional deprivation of property without due process.
Sarah Allen,
. Title 28
. The United States Trustee in his
amicus
brief cites
Shumate
as support for his contention that a bankruptcy court is a “court” under
.
Palestino,
like
Sarah Allen,
involved the right of a party to proceed
in forma pauperis
under
.This section provides that: "A bankruptcy judge may be removed during the term for which such bankruptcy judge is appointed, only for incompetence, misconduct, neglect of duty, or physical or mental disability and only by the
. Section 151 entitled “Designation of bankruptcy courts" provides in pertinent part that: "In each judicial district, the bankruptcy judges in regular active service shall constitute a unit of the district court_”
. This section, which is entitled "Appointment of bankruptcy judges," concludes that "Bankruptcy judges shall serve as judicial officers of the United States district court established under Article III of the Constitution....”
. House Comm, on the Judiciary Revision of Title 28, United States Code, H.R.Rep. No. 308, 80th Cong., 2d Sess., sec. 451, at A51-A52 (1947); Senate Comm, on the Judiciary, Revising, Codifying, and Enacting Into Law Title 28 of the United States Code, Entitled "Judicial Code and Judiciary," S.Rep. No. 1559, 80th Cong., 2d Sess. (1948).
. The new section would have read:
The term “court of the United States” includes 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, and bankruptcy courts, the judges of which are entitled to hold office for a term of 14 years.
. Pursuant to 28 U.S.C,
. The United States Trustee argues that "In the issue at bar, Congress provided another pregnant silence in
.
See
Norton,
supra,
at 28 (the fact that bankruptcy courts are "units” of the district court, which is subject to