In the Matter of J. S. Mobile Homes, Bankrupt. Ronald A. Glick v. Curtis B. Danning, Trustee

The principal questions presented on this appeal relate to the jurisdiction of the Bankruptcy Court summarily to entertain a claim that appellant had misappropriated funds belonging to the bankrupt and to order appellant to make payment to the bankrupt of the amount so misappropriated. Appellant contends that the dispute was not properly within the summary jurisdiction of the Bankruptcy Court.

The proceedings below were initiated by an application filed by the trustee to secure an order requiring appellant to pay over to the trustee the funds allegedly belonging to the bankrupt and misappropriated by the appellant. No objection to summary jurisdiction of the Bankruptcy Court was interposed by appellant in response to the referee’s order to show cause. The first objection was orally registered during the course of the hearing before the referee, but the referee proceeded nevertheless. Subsequently, the District Court denied appellant’s petition for review of the referee’s order and ruled that under § 2(a) (7) of the Bankruptcy Act, 11 U.S.C. § 11 (a) (7), appellant was deemed to have consented to summary jurisdiction. We agree.

Appellant asserts that the application of the…