Matter of Terrace Lawn Memorial Gardens, a Corporation. Terrace Lawn Memorial Gardens, a Corporation v. A. H. Doty & Associates

A petition for reorganization was presented by Terrace Lawn Memorial Gardens, verified by Dhority, as President of the corporation, pursuant to authorization of its present Board of Directors of record. The District Court, upon ex parte presentation, found good faith and approved the petition. The order expressly enjoined proceedings in the state courts, hereinafter outlined. Later a motion to dismiss this petition was filed by John A. Pace and A. H. Doty, but this motion is’ presently held in abeyance pending other developments.

The federal District Court modified its previous order on motion of Doty and Pace, and thereby permitted litigation above noted, which had previously been pending in the state courts for many months, to proceed to trial. Appeal by Terrace Lawn followed.

This Court first restrained further proceedings in the tribunals of the state and later dissolved this ban upon the agreement of the parties to expedite hearing on the appeal and hold all other litigation in statu quo until disposition here, except for formal matters. The appeal has now been submitted by argument for decision.

The questions before us are in essence: (1) Did appeal lie from the order of…