1980-08-30_GENERAL DOCUMENTS - C1981017

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BANKRUPTCY GENERAL PROVISIONS 11 USCS § 106 j481, BC ED Pa) 15 BR tain parties had violated injunction issued by 69.Damages incident to contempt pv S 68456. referee, acid hence were in contempt of court, Court has power to award compensatory dam- in civil contempt of bank- would not be dismissed on ground that order ages to debtor against bank which setoff amount fined S250 where debtor appealed from was, in effect,judgment of acquit- due on note against debtor's checking account, t conceal certain assets by tal and hence not appealable, where actually in contempt of court order restraining creditors t bankruptcy proceeding; there was no acquittal or even trial of appellees from interfering with debtor's property; Rule 920 ,lis Chapter 13 schedule of I Re Sterling(1942, CA9 Cal) 125 F2d 104. [now Rule 9020] is irrelevant to determination of t�proceeds of insurance On appeal from order adjudging bankrupt in debtor's entitlement to compensatory damages an to real property, and contempt for failure to comply with turnover since such relief is not punitive. Re Preferred �! certain questions while order, bankrupt could not rehtigate issues al- Surfacing(1976, BC ND Ga) 3 BCD 94. a (1981, BC ED Mo) 1 ready determined by District Court in entering turnover order. Re Amdur (1943, CA3 Pa) 137 F2d 708. III.APPOINTVfENT OF RECEIVER SIM to comply with turn- On motion to adjudge bankrupt in contempt 70.Generally for noncompliance with referee's order concern- Under 11 USCS § 105, Bankruptcy Court Wild as imprisonment for ing insurance policies, where it µas not shown cannot appoint receiver; instead, Court will treat Id because it does not run how much of surrender value could be traced to application for appointment of receiver as one Stud. Mueller v Nugent L Ed/05, 22 S C[ 269. Re premiums paid in fraud of creditors, report for appointment of trustee under 11 USCS � UNY)102 F 117. would be remitted to referee for re-examination. § 1104. Re S.S Jupiter Seas, Inc. (1980, BC SD imprisonment for contempt Re Goodchild(1935, DC NY) 10 F Supp 491. Fla) 1 CBC2d 770. rdttas to pay expense of *brought in state court. § 106. Waiver of sovereign immunity 1 N1)142 F 960. ,rid trot abuse its discretion (a) A governmental unit is deemed to have waived sovereign immunity Iwder and releasing bank- with respect to any claim against such governmental unit that is property Ajoert,ent for its violations, of the estate and that arose out of the same transaction or occurrence out I Ctnn had failed to show of which such governmental unit's claim arose. om order or changed con- Vu had been confined in (b) There shall be offset e ag ♦!ad been held ail allowed claim or interest of a govern- tdacriminal held in jail under sentences for mental unit anv claim against such governmental unit that is property of IM any result having been the estate. �(t945, CA7 III) 152 F2d (c) Except as provided in subsections (a) and (b) of this section and �illpoaer to enforce obeli- notwithstanding any assertion of sovereign immunity— litttProperty by imprison- j (1) a provision of this title [11 USCS §§ 101 et seq.] that contains i.&* Knitting Works v "creditor" "entity", or "governmental unit" applies to overnmental a ) 101 F 810, reh den j units; and PP g >s 6boen imprisoned upon (2) a determination by the court of an issue arising under such a 4kU01din9 assets from his provision binds governmental units. ktobte in proceed- I (Nov. 6, 1978, P. L. 95-598, Title I, § 101, 92 Stat. 2555.) Cotttcmpt in failing to him to turn over Klein(1937, DC NY) j HISTORY; ANCILLARY LAWS AND DIRECTIVES Prior law and revision: r s+. House Judiciary Report pwtuant to referee's Section 106 provides for a limited waiver of sovereign immunity in Possession of prop- bankruptcy cases. Though Congress has the power to waive sovereign edcra attacked in immunity for the Federal government completely in bankruptcy cases, "ed by fa,lurc to �ccmply with turn- the policy followed here is designed to achieve approximately the same taro t. any cimc, in I result that would prevail outside of bankruptcy. Congress does not, fin Clcmem v however, have the power to waive Sovereign immunity completely with ;F2d 796. I respect to claims of bankrupt estate against a State, though it may g for supposed exercise its bankruptcy power through the supremacy clause to prevent - ictrtificate that cer- j or phohibit State action that is contrary to bankruptcy policy. 117 :i Aff +r Yt Ix