Prudence Realization Corp. v. Ferris - 323 U.S. 650 (1945)
U.S. Supreme Court
Prudence Realization Corp. v. Ferris, 323 U.S. 650 (1945)
Prudence Realization Corp. v. Ferris
Argued December 8, 11, 1944
Decided January 29, 1945
323 U.S. 650
1. The bankruptcy court having closed a § 77B proceeding for the reorganization of an issue of mortgage participation certificates without determining or retaining jurisdiction to determine the question of relative priority as between a guarantor and other holders, and having remitted the parties to "a court of competent jurisdiction" for the determination of that question, the state court, as such a court, properly determined the question in accordance with the law of the State. Prudence Corp. v. Geist, 316 U. S. 89, distinguished. Pp. 323 U. S. 654-656.
2. No appeal having been taken from the bankruptcy court's failure to retain jurisdiction to determine the question of relative priority, the order confirming the plan of reorganization is res judicata. P. 323 U. S. 654.
292 N.Y. 210, 54 N.E.2d 367, affirmed.
Certiorari, post, p. 686, to review a determination of the relative rights of the parties in a distribution to creditors under a plan of reorganization.