Brown v. Gerdes - 321 U.S. 178 (1944)
U.S. Supreme Court
Brown v. Gerdes, 321 U.S. 178 (1944)
Brown v. Gerdes
Argued January 4, 1944
Decided February 7, 1944
321 U.S. 178
1. In a reorganization proceeding under Ch. X of the Bankruptcy Act, the bankruptcy court has exclusive jurisdiction to determine the amount which shall be allowed out of the bankrupt estate for services of attorneys who, by authority of the bankruptcy court, represented the bankrupt estate in litigation in a state court. P. 321 U. S. 180.
2. The petition for reorganization in this case having been approved subsequently to the effective date of Ch. X, the result is unaffected
by the fact that the petition was filed and the main suit in the State court litigation was instituted prior to that date. P. 321 U. S. 184.
3. Nor is the result affected by the fact that the litigation in the state court was within the exclusive jurisdiction of that court. P. 321 U. S. 185.
4. It does not appear here that the State has imposed conditions for entry into its courts which are inconsistent with the authority of the bankruptcy court. P. 321 U. S. 186.
5. Assuming that the state court could decline jurisdiction of the suits to enforce claims of the bankrupt estate, it could not take jurisdiction of them but fail to apply the federal rule governing the compensation of those who are employed by the bankruptcy court and who represent it in the state tribunal. P. 321 U. S. 186.
290 N.Y. 468, 49 N.E.2d 718, affirmed.
Certiorari, 320 U.S. 722, to review the reversal of an order of the lower state Courts which fixed the amounts of fees and liens for services rendered by the plaintiffs as attorneys for a bankrupt estate. See also 290 N.Y. 868, 50 N.E.2d 249.