PAGE, TRUSTEE,
v.
ARKANSAS NATURAL GAS CORP.
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A trustee in a bankruptcy proceeding took possession of an oil and gas lease and sought to compel the transfer of title from an adverse claimant, who then filed suit years later to quiet title to the same lease, arguing the bankruptcy referee lacked jurisdiction to decide the matter. The Supreme Court held that the referee had jurisdiction to decide title disputes over property in the bankrupt's estate when the trustee took possession and the adverse claimant participated in the bankruptcy proceeding without objecting to the referee's authority, and therefore the issue was conclusively adjudicated and could not be relitigated.
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Mr. Justice Stone delivered the opinion of the Court.
Petitioner brought this suit in the Arkansas Chancery-Court against respondent’s predecessor in interest to quiet the title to an oil and gas lease. The cause was removed to the United States District Court for Western Arkansas, where a trial of the issues resulted in a judgment for respondent, which was affirmed by the Court of Appeals for the Eighth Circuit. 53 F. (2d) 27. Both courts held that the issue with respect to the ownership of the lease was res adjudicate by reason of a proceeding before a referee in bankruptcy, sitting in the district, in which the issues with respect to the title presented here, had been decided against the predecessor of petitioner and in favor of the trustee in bankruptcy, through whom respondent acquired its title to the lease.
The receiver in the bankruptcy proceeding, later appointed trustee, had gone into possession of the leasehold, claiming it as property of the bankrupt. Lyvers, petitioner’s predecessor, filed au petition before the referee, claiming title to the lease, asking that he be put in possession and that the trustee be ordered not to sell the lease. The trustee answered, setting up that Lyvers was trustee of the lease for the bankrupt, and asking that Lyvers execute a deed of the property to the trustee. The matter was heard by the referee, who ordered Lyvers to execute the conveyance. The order was affirmed by the District Court and in conformity with it Lyvers then conveyed the lease to the trustee.
The attempt made in the present suit to relitigate the issues involved in the bankruptcy proceeding, is justified chiefly on the ground that the referee in bankruptcy was without jurisdiction to try the issues presented in the proceeding before him and that, for that reason, the order was void and could not operate to adjudicate the issues tendered in the present suit. This Court granted certiorari , to resolve the jurisdictional question. Many and complicated questions of fact are involved and were argued here, but as they have been found in favor of the respondent by both courts below, we do not review them, see Texas & N. O. R. Co. v. Brotherhood of Clerks, 281 U. S. 548, and we confine ourselves to the question of the jurisdiction of the referee in bankruptcy.
The court below held that the referee in bankruptcy had jurisdiction to decide the issues raised by the petition and answer, by virtue of the fact that the trustee had gone into possession of the leasehold, and that possession gave the referee as a court of bankruptcy jurisdiction to hear and determine all questions respecting the title, possesion, or control of the property. Murphy v. John Hofman Company, 211 U. S. 562. It also held that the referee had power to malm the order, since Lyvers had participated in the litigation without objecting to its summary form until after the order had been made. We think that the judgment should be affirmed.
The right asserted before the referee by the trustee in bankruptcy to compel a conveyance to the bankrupt of property adversely claimed, is one which may be asserted by the trustee in a plenary suit. By § 23 (a) of the Bankruptcy Act and § 291 of the Judicial Code, District Courts of the United States, which by § 1 (8) of the Bankruptcy Act are courts of bankruptcy, are given jurisdiction of all controversies in law or equity between trustees and adverse claimants concerning the property claimed by the trustee. And by § 23 (b), “ suits by the trustee shall only be brought or prosecuted in the courts where the bankrupt, whose estate is being administered by such trustee, might have brought or prosecuted them if proceedings in bankruptcy had not been instituted, unless by consent of the proposed defendant ...” For reasons stated at length in the opinion in MacDonald v. Plymouth County Trust Co., decided this day, ante, p. 263, we hold that the referee is a court within the meaning of § 23 (b) and that, respondent’s predecessor having consented to litigate the issues presented by the petition and answer before the referee, the latter had jurisdiction to decide the issues presented. See Murphy v. Hofman Co., supra. The order of the referee, in the bankruptcy proceeding, affirmed by the District Court, therefore adjudicated those issues between the parties and they may not be relitigated in the present suit by their successors in interest. Affirmed.
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Schumacher v. Beeler in Bankruptcy, 293 U.S. 367 (U.S. 1934)…ily involved in the case of Lovell v. Newman & Son, 227 U. S. 412, 426, and so far as the language of the opinion indicated a contrary view, it is not approved. Compare MacDonald v. Plymouth Trust Co., 286 U. S. 263, 268; Page v. Arkansas Gas Corp., 286 U. S. 269, 271, 272. We conclude that the court had jurisdiction in the instant case, and the decree of the Circuit Court of Appeals setting aside the order of the District Court and directing that court to hear and determine the controversy upon its merits…1 / 2
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Harris v. Avery Brundage Co., 305 U.S. 160 (U.S. 1938)…serted no right or title to the property before the referee, and the circumstances under which he [they] held possession must be accepted as found by the referee and the District Court.” Mueller v. Nugent, supra, 15. Cf. Page v. Arkansas Gas Corp., 286 U. S. 269, 271. Taubel-Scott-Kitzmiller Co. v. Fox, supra, 433; see Note 5, supra. Cf. Mueller v. Nugent, supra, 14. MacDonald v. Plymouth Trust Co., 286 U. S. 263; Bryan v. Bernheimer, supra, 197; see Taubel-Scott-Kitzmiller Co. v. Fox, supra, 437; Page v…
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Henderson v. United States, 218 F.2d 14 (6th Cir. 1955)…at testimony as part of the evidence justifying the submission of the case to the jury. Appellant claims its absence in the second trial is sufficient to change the ruling. Page v. Arkansas Natural Gas Corporation, 8 Cir., 53 F. 2d 27, 31, affirmed 286 U.S. 269, 52 S.Ct. 507, 76 L.Ed. 1096. We do not agree. The present record again includes evidence of not only misrepresentations of material facts, referred to in the first opinion, but also representations as to value and soundness of the leases being exp…
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Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Tex. & NEW Orleans R.R. Co. v. Bhd. of Ry. & S.S. Clerks, 281 U.S. 548 (U.S. 1930)
- Murphy v. John Hofman Co., 211 U.S. 562 (U.S. 1909)
- Page v. Ark. Natural Gas Corp., 53 F.2d 27 (8th Cir. 1931)