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- SUPREME COURT OF THE UNITED STATES
- --------
- No. 93-1504
- --------
- CELOTEX CORPORATION, PETITIONER v.
- BENNIE EDWARDS et ux.
- on writ of certiorari to the united states court
- of appeals for the fifth circuit
- [April 19, 1995]
-
- Justice Stevens, with whom Justice Ginsburg joins,
- dissenting.
- Today the majority holds that an Article III court
- erred when it allowed plaintiffs who prevailed on appeal
- to collect on a supersedeas bond in the face of an injunc-
- tion issued by a non-Article III judge. Because, in my
- view, the majority attaches insufficient weight to the
- fact that the challenged injunction was issued by a non-
- Article III judge, I respectfully dissent.
-
- I
- The outlines of the problems I perceive are best drawn
- by starting with an examination of the injunctions and
- opinions issued by the bankruptcy judge in this case.
- As the majority notes, Bennie and Joann Edwards (the
- Edwards) won a tort judgment against Celotex for
- damages Bennie Edwards suffered as a result of expo-
- sure to asbestos. To stay the judgment pending appeal,
- Celotex arranged for Northbrook Property and Casualty
- Insurance Company (Northbrook) to post a supersedeas
- bond to cover the full amount of the judgment. On
- October 12, 1990, before Celotex filed its voluntary
- petition under Chapter 11 of the Bankruptcy Code, the
- Court of Appeals for the Fifth Circuit affirmed the
- Edwards' judgment against Celotex. It is undisputed
-
- that, when the Edwards' judgment was affirmed, any
- property interest that Celotex retained in the supersede-
- as bond was extinguished.
- The filing of Celotex's bankruptcy petition on October
- 12, 1990, triggered the automatic stay provisions of the
- Bankruptcy Code. See 11 U. S. C. 362(a). On October
- 17, 1990, the bankruptcy judge, acting pursuant to 11
- U. S. C. 105(a), supplemented the automatic stay
- provisions with an emergency order staying, inter alia,
- all proceedings -involving any of the Debtors [i.e.,
- Celotex].- App. to Pet. for Cert. 28. The supersedeas
- bond filed in the Edwards' case, however, evidences an
- independent obligation on the part of Northbrook. For
- that reason, neither the automatic stay of proceedings
- against the debtor pursuant to 362(a) of the Bank-
- ruptcy Code nor the bankruptcy judge's October 17,
- 105(a) stay restrained the Edwards from proceeding
- against Northbrook to enforce Northbrook's obligations
- under the bond. As the Court of Appeals correctly held,
- the October 17 order enjoined the prosecution of proceed-
- ings involving -the Debtors,- but did not expressly enjoin
- the Edwards from proceeding against Northbrook. See
- 6 F. 3d 312, 315 (CA5 1993).
- On May 3, 1991, the Edwards commenced their
- proceeding against Northbrook by filing a motion
- pursuant to Rule 65.1 of the Federal Rules of Civil
- Procedure to enforce the supersedeas bond. Several
- weeks later-on June 13, 1991-the Bankruptcy Court
- entered a new three-paragraph order enjoining all of
- Celotex's judgment creditors from collecting on their
- supersedeas bonds. Paragraph 1 of the order addressed
- creditors whose appellate process had not yet concluded.
- Paragraph 2 addressed creditors whose appellate process
- concluded only after Celotex had filed for bankruptcy.
- Paragraph 3 applied to judgment creditors, such as the
- Edwards, whose appeals had concluded before the filing
- of the bankruptcy petition. Paragraph 3 expressly
- precluded those creditors from proceeding against any
- bond -without first seeking to vacate the Section 105
- stay entered by this Court.- In re Celotex Corp., 128
- B. R. 478, 485 (Bkrtcy. Ct. MD Fla. 1991).
- The opinion supporting that order explains that Para-
- graphs 1 and 2 rest in part on the theory that the
- debtor retains a property interest in the supersedeas
- bonds until the appellate process is complete, and any
- attempt to collect on those bonds is therefore covered in
- the first instance by 362(a)'s automatic stay provisions.
- The opinion recognized that that rationale did not cover
- supersedeas bonds posted in litigation with judgment
- creditors, such as the Edwards, whose appellate process
- was complete. The bankruptcy judge concluded, howev-
- er, that 105(a) gave him the power to stay the collec-
- tion efforts of such bonded judgment creditors. The
- bankruptcy judge contended that other courts had
- utilized the 105(a) stay -to preclude actions which may
- `impede the reorganization process,'- id., at 483, quoting
- In re Johns-Manville Corp., 837 F. 2d 89, 93 (CA2), cert.
- denied, 488 U. S. 868 (1988), or -`which will have an
- adverse impact on the Debtor's ability to formulate a
- Chapter 11 plan,'- 128 B. R., at 483, quoting A. H.
- Robins Co. v. Piccinin, 788 F. 2d 994 (CA4), cert.
- denied, 479 U. S. 876 (1986). But cf. n. 12, infra.
- Apparently viewing his own authority as virtually
- limitless, the bankruptcy judge described a general
- bankruptcy power -to stop ongoing litigation and to
- prevent peripheral court decisions from dealing with
- issues . . . without first allowing the bankruptcy court
- to have an opportunity to review the potential effect on
- the debtor.- 128 B. R., at 484. He concluded that in
- -mega- cases in which -potential conflicts with other
- judicial determinations- might arise, -the powers of the
- bankruptcy court under Section 105 must in the initial
- stage be absolute.- Ibid.
- I do not agree that the powers of a bankruptcy judge,
- a non-Article III judge, -must . . . be absolute- at the
- initial stage or indeed at any stage. Instead, the
- jurisdiction and the power of bankruptcy judges are
- cabined by specific and important statutory and constitu-
- tional constraints that operate at every phase of a
- bankruptcy. In my view, those constraints require that
- the judgment of the Court of Appeals be affirmed.
- The majority concludes that the Court of Appeals must
- be reversed because the bankruptcy judge had jurisdic-
- tion to issue the injunction and because the injunction
- had more than a -`frivolous pretense to validity.'- Ante,
- at 13. Even applying the majority's framework, I would
- affirm the Court of Appeals. As I will demonstrate, the
- constraints on the jurisdiction and authority of the
- bankruptcy judge compel the conclusion that the bank-
- ruptcy judge lacked jurisdiction to issue the challenged
- injunction, and that the injunction has only a -frivolous
- pretense to validity.- I will also explain, however, why
- the majority's deferential approach seems particularly
- inappropriate as applied to this particular injunction,
- now in its fifth year of preventing enforcement of
- supersedeas bonds lodged in an Article III court.
-
- II
- In my view, the bankruptcy judge lacked jurisdiction
- to issue an injunction that prevents an Article III court
- from allowing a judgment creditor to collect on a super-
- sedeas bond posted in that court by a nondebtor. In
- reaching the contrary conclusion, the majority relies
- primarily on the bankruptcy judge's -related to- jurisdic-
- tion, and thus I will address that basis of jurisdiction
- first. The majority properly observes that, under 28
- U. S. C. 1334(b), the district court has broad bankruptcy
- jurisdiction, extending to -all civil proceedings arising
- under title 11, or arising in or related to cases under
- title 11.- The majority also notes correctly that the
- Edwards' action to enforce the supersedeas bond is
- within the district court's -related to- jurisdiction,
- because allowing creditors such as the Edwards -to
- execute immediately on the bonds would have a direct
- and substantial adverse effect on Celotex's ability to
- undergo a successful reorganization.- Ante, at 10. The
- majority then observes that, under 28 U. S. C. 157(a),
- the district court may -refe[r]- to the bankruptcy judge
- -any or all cases under title 11 and any or all proceed-
- ings arising under title 11 or arising in or related to a
- case under title 11.- Thus, the majority concludes
- that, because the Edwards' action to enforce the superse-
- deas bond was within the District Court's -related to-
- jurisdiction and because the District Court referred all
- matters to the bankruptcy judge, the bankruptcy judge
- had jurisdiction over the Edwards' action.
- In my view, the majority's approach pays insufficient
- attention to the remaining provisions of 157, and, more
- importantly, to the decision of this Court that gave rise
- to their creation. The current jurisdictional structure of
- the Bankruptcy Code reflects this Court's decision in
- Northern Pipeline Constr. Co. v. Marathon Pipe Line Co.,
- 458 U. S. 50 (1982), which in turn addressed the
- Bankruptcy Reform Act of 1978, 92 Stat. 2549. The
- 1978 Act significantly restructured the Bankruptcy Code.
- The Act created -bankruptcy courts- and vested in them
- -jurisdiction over all `civil proceedings arising under title
- 11 [the Bankruptcy title] or arising in or related to
- cases under title 11.'- Northern Pipeline, 458 U. S., at
- 54, quoting 28 U. S. C. 1471(b) (1976 ed., Supp. IV).
- As the plurality opinion in Northern Pipeline observed,
- -[t]his jurisdictional grant empowers bankruptcy courts
- to entertain a wide variety of cases,- involving -claims
- based on state law as well as those based on federal
- law.- 458 U. S., at 54. The Act also bestowed upon the
- judges of the bankruptcy courts broad powers to accom-
- pany this expanded jurisdiction. See infra, at __;
- Northern Pipeline, 458 U. S., at 55. The Act did not,
- however, make the newly empowered bankruptcy judges
- Article III judges. In particular, it denied bankruptcy
- judges the life tenure and salary protection that the
- Constitution requires for Article III judges. See U. S.
- Const., Art. III, 1.
- In Northern Pipeline, this Court held that the Act was
- unconstitutional, at least insofar as it allowed a non-
- Article III court to -entertain and decide- a purely state
- law claim. 458 U. S., at 91 (Rehnquist, J., concurring
- in judgment); see also id., at 86 (plurality opinion). The
- plurality opinion distinguished the revamped bankruptcy
- courts from prior district court -adjuncts- which the
- Court had found did not violate Article III. The plural-
- ity noted that, in contrast to the narrow, specialized
- jurisdiction exercised by these prior adjuncts, -the
- subject-matter jurisdiction of the bankruptcy courts
- encompasses not only traditional matters of bankruptcy,
- but also `all civil proceedings arising under title 11 or
- arising in or related to cases under title 11.'- Id., at
- 85. In addition, prior adjuncts -engaged in statutorily
- channeled factfinding functions,- while the bankruptcy
- courts -exercis[e] `all of the jurisdiction' conferred by the
- Act on the district courts.- Ibid.
- In response to Northern Pipeline, Congress passed the
- Bankruptcy Amendments and Federal Judgeship Act of
- 1984 (1984 amendments), 98 Stat. 333. Section 157 was
- passed as part of the 1984 amendments. Section 157
- establishes two broad categories of proceedings: -core
- proceedings- and -non-core proceedings.- For -all core
- proceedings arising under title 11, or arising in a case
- under title 11 referred under [157(a)],- 157(b)(1)
- permits bankruptcy judges to -hear and determine- the
- proceedings and to -enter appropriate orders and
- judgments.- For noncore proceedings -otherwise related
- to a case under title 11-, 157(c)(1) permits the bank-
- ruptcy court only to -hear- the proceedings and to
- -submit proposed findings of fact and conclusions of law
- to the district court.- See 1 Collier -3.01[1][c][iv], at
- 3-28 (-Civil proceedings `related to cases under title 11'-
- are -excluded from being treated as `core proceedings' by
- 28 U. S. C. 157(b)(1), and are the subject of special
- procedures contained in section 157(c)(1) and (c)(2)-).
- For these -related proceedings,- 1 Collier -3.01[1][c][iv],
- at 3-28, only the district court has the power to enter
- -any final order or judgment.-
- In my view, the distinction between the jurisdiction to
- -hear and determine- core proceedings on the one hand
- and the jurisdiction only to -hear- related proceedings on
- the other hand is critical, if not dispositive. I believe
- that the jurisdiction to hear (and yet not to determine)
- a case under 157(c)(1) provides insufficient jurisdiction
- to a bankruptcy judge to permit him to issue a binding
- injunction that prevents an Article III court from
- exercising its conceded jurisdiction over the case. The
- unambiguous text of 157(c)(1) requires that the bank-
- ruptcy judge's participation in related proceedings be
- merely advisory rather than adjudicative. In my view,
- having jurisdiction to grant injunctions over cases that
- one may not decide is inconsistent with such an advisory
- role. An injunction is an extraordinary remedy whose
- impact on private rights may be just as onerous as a
- final determination. The constitutional concerns that
- animate the current jurisdictional provisions of the
- Bankruptcy Code and that deny non-Article III tribunals
- the power to determine private controversies apply with
- equal force to the entry of an injunction interfering with
- the exercise of the admitted jurisdiction of an Article III
- tribunal.
- In sum, my view on the sufficiency of -related to-
- jurisdiction to sustain the injunction in this case can be
- stated quite simply: If a bankruptcy judge lacks jurisdic-
- tion to -determine- a question, the judge also lacks
- jurisdiction to issue an injunction that prevents an
- Article III court, which concededly does have jurisdiction,
- from determining that question. Any conclusion to
- the contrary would trivialize the constitutional impera-
- tives that shaped the Bankruptcy Code's jurisdictional
- provisions.
-
- III
- Petitioners and the majority rely primarily on -related
- to- jurisdiction. Indeed, the Court's holding appears to
- rest almost entirely on the view that a bankruptcy judge
- has jurisdiction to enjoin proceedings in Article III
- courts whenever those proceedings are -related to- a
- pending Title 11 case. See ante, at 7-11. Two footnotes
- in the Court's opinion, however, might be read as
- suggesting alternative bases of jurisdiction. See ante, at
- 3, n. 4, 11, n. 8. Those two footnotes require a brief
- response.
- In footnote 4 of its opinion, the Court refers to two
- different claims advanced by Celotex in the bankruptcy
- proceedings: a claim that -the bonded judgment creditors
- should not be able to execute on their bonds because, by
- virtue of the collateralization of the bonds, the bonded
- judgment creditors are beneficiaries of Celotex asset
- transfers that are voidable as preferences and fraudulent
- transfers-; and a claim that -the punitive damages por-
- tions of the judgments can be voided or subordinated.-
- There is little doubt that those claims are properly
- characterized as ones -arising under- Title 11 within the
- meaning of 28 U. S. C. 1334(b); however, it does not
- necessarily follow from that characterization that the
- bankruptcy judge had jurisdiction to issue the injunction
- in support of the prosecution of those claims. Celotex's
- complaint was not filed until months after the bank-
- ruptcy judge's injunction issued. The claims raised in
- that complaint cannot retroactively provide a jurisdic-
- tional basis for the bankruptcy judge's injunction.
- Moreover, Celotex's attempts to set aside the
- Edwards' supersedeas bond are patently meritless. It
- strains credulity, to suggest that a supersedeas bond,
- posted almost a year and a half before the bankruptcy
- petition was filed, could be set aside as a preference or
- as a fraudulent transfer for the benefit of Celotex's ad-
- versaries in bitterly contested litigation. Conceivably,
- Celotex's provision of security to Northbrook might be
- voidable, but that possibility could not impair the rights
- of the judgment creditors to enforce the bond against
- Northbrook even though they might be unwitting benefi-
- ciaries of the fraud. That possibility, at most, would be
- relevant to the respective claims of Northbrook and
- Celotex to the pledged collateral. Similarly, the fact
- that the Edwards' judgment included punitive as well as
- compensatory damages does not provide even an argu-
- able basis for reducing Northbrook's obligations under
- the supersedeas bond. Even if there is a basis for
- subordinating a portion of Northbrook's eventual claim
- against Celotex on -bankruptcy law grounds,- that has
- nothing to do with the Edwards' claim against
- Northbrook. It thus seems obvious that, at least with
- respect to the Edwards, Celotex has raised frivolous
- claims in an attempt to manufacture bankruptcy juris-
- diction and thereby to justify a bankruptcy judge's
- injunction that had been issued over one year earlier.
- Cf. Siler v. Louisville & Nashville R. Co., 213 U. S. 175,
- 191 (1909) (-Of course, the Federal question must not
- be merely colorable or fraudulently set up for the mere
- purpose of endeavoring to give the court jurisdiction-).
- In its footnote 8, the Court appears to suggest that
- the injunction prohibiting the Edwards from proceeding
- against Northbrook (described in the footnote as the
- -stay proceeding-) may -aris[e] under- Title 11 or may
- -arise in- the Title 11 case. Perhaps this is accurate in
- a literal sense: the injunction did, of course, -arise
- under- Title 11 because 11 U. S. C. 105(a) created
- whatever power the bankruptcy judge had to issue the
- injunction. Similarly, the injunction -arises in- the Title
- 11 case because that is where it originated. It cannot
- be the law, however, that a bankruptcy judge has juris-
- diction to enter any conceivable order that a party
- might request simply because 105(a) authorizes some
- injunctions or because the request was first made in a
- pending Title 11 case. Cf. 2 Collier -105.01[1], at
- 105-2 (Section 105 -is not an independent source of
- jurisdiction, but rather it grants the courts flexibility to
- issue orders which preserve and protect their jurisdic-
- tion-). The mere filing of a motion for a 105 injunc-
- tion to enjoin a proceeding in another forum cannot be
- a jurisdictional bootstrap enabling a bankruptcy judge to
- exercise jurisdiction that would not otherwise exist.
-
- IV
- Even if I believed that the bankruptcy judge had
- jurisdiction to issue its injunction, I would still affirm
- the Court of Appeals because in my view the bank-
- ruptcy judge's injunction has only a -frivolous pretense
- to validity.-
- In 1898, Congress codified the bankruptcy laws.
- Under the 1898 Bankruptcy Act, most bankruptcy pro-
- ceedings were conducted by -referees- who resolved
- controversies involving property in the actual or con-
- structive possession of the court, as well as certain
- disputes involving property in the possession of third
- parties. In 2(a)(15) of the 1898 Act, Congress vested
- in bankruptcy courts the power to:
- -[M]ake such orders, issue such process, and enter
- such judgments in addition to those specifically
- provided for as may be necessary for the enforce-
- ment of the provisions of this Act.- Act of July 1,
- 1898, 30 Stat. 546.
- In 1938, Congress clarified both the powers and the
- limitations on the injunctive authority of referees in
- bankruptcy by adding to the end of 2(a)(15), -Provided,
- however, That an injunction to restrain a court may be
- issued by the judge only.- 52 Stat. 843 (emphasis in
- original).
- In 1978, through the Bankruptcy Reform Act, Con-
- gress significantly revised the Bankruptcy Code and the
- role of bankruptcy referees. Though stopping short of
- making bankruptcy referees Article III judges, Congress
- significantly increased the status, the duties, and the
- powers of those referees. For example, as we noted in
- Northern Pipeline, the expanded powers under the new
- Act included -the power to hold jury trials, to issue
- declaratory judgments, [and] to issue writs of habeas
- corpus under certain circumstances.- 458 U. S., at 55.
- In addition, Congress again provided for broad injunc-
- tive powers. Thus, for example, in the place of
- 2(a)(15), Congress added 11 U. S. C. 105, which pro-
- vided in relevant part: -The bankruptcy court may issue
- any order, process, or judgment that is necessary or
- appropriate to carry out the provisions of this title.-
- See also 458 U. S., at 55 (-Congress has allowed bank-
- ruptcy judges the power . . . to issue all writs necessary
- in aid of the bankruptcy court's jurisdiction-). Once
- again, however, along with both this marked expansion
- of the power of bankruptcy judges and the broad delega-
- tion of injunctive authority, Congress indicated its in-
- tent to limit the power of those judges to enjoin other
- courts: Although Congress provided that -[a] bankruptcy
- court shall have the powers of a court of equity, law,
- and admiralty,- it also provided that bankruptcy courts
- -may not enjoin another court.- 28 U. S. C. 1481
- (1982 ed.). Thus, for well over 50 years prior to the
- adoption of the 1984 amendments to the Bankruptcy
- Code, it was clear that Congress intended to deny bank-
- ruptcy judges the power to enjoin other courts.
- The 1984 amendments, inter alia, repealed 1481 (and
- its express limitation on injunctive authority), leaving
- 105 as the only source of the bankruptcy judge's in-
- junctive authority. Given that Northern Pipeline re-
- quired a contraction in the authority of bankruptcy
- judges, and given that the 1984 amendments regard-
- ing the powers of the bankruptcy courts were passed to
- comply with Northern Pipeline, it would be
- perverse-and in my view -frivolous--to contend that
- Congress intended the repeal of 1481 to operate as an
- authorization for those judges to enjoin proceedings in
- other courts, thus significantly expanding the powers of
- bankruptcy judges.
- My view of the consequence of the 1984 amendments
- is reinforced by the structure of 1481. When Congress
- placed restrictions on the injunctive power of the bank-
- ruptcy courts, it did so in 1481, right after the clause
- granting those courts -the powers of a court of equity,
- law, and admiralty.- In my view, this suggests that
- Congress saw 1481-and not 105(a)-as the source of
- any power to enjoin other courts. Thus, the removal of
- 1481 by the 1984 amendments is properly viewed as
- eliminating the sole source of congressionally-granted
- authority to enjoin other courts. Cf. In re Hipp, 895
- F. 2d 1503, 1515-1516 (CA5 1990) (concluding on simi-
- lar reasoning that 1481, not 105(a), was the source of
- the bankruptcy court's power to punish criminal con-
- tempt under the 1978 Act).
- Nor does anything in the 1986 amendments to the
- Bankruptcy Code alter my analysis. The primary
- effect of those amendments was to give the bankruptcy
- judges the power to issue orders sua sponte. The
- 1986 amendments, therefore, do not reflect any expan-
- sion of the power of bankruptcy judges to enjoin other
- courts.
- The bankruptcy judge's error with respect to this
- injunction thus seems clear, and the injunction falls,
- therefore, within the exception recognized by the major-
- ity for injunctions with only a -frivolous pretense to
- validity.- I recognize, of course, that one may legiti-
- mately question the -frivolousness- of the injunction in
- light of the Fourth Circuit's upholding the very injunc-
- tion at issue in this case, see Willis v. Celotex Corp.,
- 978 F. 2d 146 (1992), cert. denied, 507 U. S. __ (1993),
- and the disagreement of a substantial number of my
- colleagues. In my view, however, the bankruptcy
- judge's error is sufficiently plain that the Court of Ap-
- peals was justified in allowing the Edwards to collect on
- their bond.
-
- V
- The Court's holding today rests largely on its view
- that the Edwards' proper remedy is to appeal the bank-
- ruptcy judge's injunction, first to the District Court and
- then to the Court of Appeals for the Eleventh Circuit.
- The Court concedes, however, that the Edwards need
- not do so if the bankruptcy judge exceeded his jurisdic-
- tion, or if the injunction is supported by nothing more
- than -a frivolous pretense to validity.- Ante, at 6. For
- the reasons already stated, I think both of those condi-
- tions are satisfied in this case. The non-Article III
- bankruptcy judge simply lacked both jurisdiction and
- authority to prevent an Article III court from exercising
- its unquestioned jurisdiction to decide a matter that is
- related only indirectly to the bankruptcy proceeding. I
- think it important, however, to add a few brief words
- explaining why I find this injunction especially troubling
- and why the injunction should be viewed with a particu-
- larly critical eye.
- First, the justification offered by the bankruptcy judge
- should give the court pause. As originally articulated,
- the justification for this injunction was that emergency
- relief was required lest the reorganization of Celotex
- become impossible and liquidation follow. Apart from
- the fact that the -emergency- rationale is plainly insuffi-
- cient to support an otherwise improper injunction that
- has now lasted for more than four years, the judge's
- reasoning reveals reliance on the misguided notion that
- a good end is a sufficient justification for the existence
- and exercise of power. His reference to the need to
- exercise -absolute- power to override -potential conflicts
- with other judicial determinations- that might have a
- -potential impact on the debtor- should invite far more
- exacting scrutiny of his order than the Court deems
- appropriate.
- Second, that the subject of the injunction was a super-
- sedeas bond makes the injunction suspect. A supersede-
- as bond may be viewed as putting the integrity of the
- Court in which it is lodged on the line. As the Court of
- Appeals noted, the Edwards were -promised by the
- court- that the supersedeas bond would be available if
- they prevailed on appeal. 6 F. 3d, at 320. For that
- reason, in my opinion, questions relating to the enforce-
- ability of a supersedeas bond should generally be an-
- swered in the forum in which the bond is posted.
- Moreover, whenever possible, such questions should be
- resolved before the court accepts the bond as security
- for collection of the judgment being appealed. After a
- debtor has benefitted from the postponement of collec-
- tion of an adverse judgment, both that debtor and its
- successors-in-interest should normally be estopped from
- asserting that the judgment creditors who relied to their
- detriment on the validity of the bond had no right to do
- so. The very purpose of a supersedeas bond is to pro-
- tect judgment creditors from the risk that insolvency of
- the debtor may impair their ability to enforce the judg-
- ment promptly. When the bond has served the purpose
- of forestalling immediate levies on the judgment debtor's
- assets-levies that might have precipitated an earlier
- bankruptcy-it is inequitable to postpone payment mere-
- ly because the risk against which the bond was intend-
- ed to provide protection has actually occurred. See id.,
- at 319 (-It is manifestly unfair to force the judgment
- creditor to delay the right to collect with a promise to
- protect the judgment only to later refuse to allow that
- successful plaintiff to execute the bond because the
- debtor has sought protection under the laws of bank-
- ruptcy-); In re Southmark, 138 B. R. 820, 827-828
- (Bkrtcy. Ct. ND Tex. 1992) (internal quotation marks
- omitted) (-The principal risk against which such bonds
- are intended as a protection is insolvency. To hold that
- the very contingency against which they guard shall, if
- it happens, discharge them, seems to us bad law and
- worse logic-). The inequity that the Court today con-
- dones does not, of course, demonstrate that its legal
- analysis is incorrect. It does, however, persuade me
- that the Court should not review this case as though it
- presented an ordinary collateral attack on an injunction
- entered by an Article III court. Instead, the Court
- should, I believe, more carefully consider which of the
- two competing tribunals is guilty of trespassing in the
- other's domain.
- Accordingly, I respectfully dissent.
-