In the Matter of B. R. Barasch, Debtor. Joel Mithers, Receiver v. Shirley Lee Barasch

This appeal concerns a controversy arising under Chapter XI of the Bankruptcy Act, 11 U.S.C. §§ 701-799 : Does the Bankruptcy Court have summary jurisdiction to determine the rights of the debtor and his wife, over her objection, in and to community property awarded to the wife by an interlocutory decree of divorce, appeals from which were pending at the time the receiver sought turnover orders in respect to such property? This Court’s jurisdiction on appeal from the final order below is based upon Section 24a of the Act, 11 U.S.C. § 47 (a).

In 1967, Buddy R. Barasch (“Buddy”), the debtor, filed suit for divorce in the Superior Court for Los Angeles County. His wife and appellee here, Shirley B. Barasch (“Shirley”), filed a cross-complaint. During the course of the divorce proceedings, various pen-dente lite orders were entered regarding the then community property of the parties. On August 4, 1967, an order was entered authorizing Shirley to dissolve two family corporations. On May 29, 1968, a second pendente lite order granting her exclusive powers to manage and control certain real properties was entered. Pursuant to this order, however, she was prohibited from using the…