United States Supreme Court Cases & Opinions

U.S. Supreme Court

Prudence Realization Corp. v. Ferris, 323 U.S. 650 (1945)

Prudence Realization Corp. v. Ferris

No. 137

Argued December 8, 11, 1944

Decided January 29, 1945

323 U.S. 650

Syllabus

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.

Page 323 U. S. 651