Celotex Corp. v. Edwards, 514 U.S. 300, 10 (1995)

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Cite as: 514 U. S. 300 (1995)

Opinion of the Court

We believe that the issue whether respondents are entitled to immediate execution on the bond against Northbrook is at least a question "related to" Celotex's bankruptcy.7 Admittedly, a proceeding by respondents against Northbrook on the supersedeas bond does not directly involve Celotex, except to satisfy the judgment against it secured by the bond. But to induce Northbrook to serve as surety on the bond,

cinin, 788 F. 2d 994, 1002, n. 11 (CA4), cert. denied, 479 U. S. 876 (1986); In re Wood, 825 F. 2d 90, 93 (CA5 1987); Robinson v. Michigan Consol. Gas Co., 918 F. 2d 579, 583-584 (CA6 1990); In re Dogpatch U. S. A., Inc., 810 F. 2d 782, 786 (CA8 1987); In re Fietz, 852 F. 2d 455, 457 (CA9 1988); In re Gardner, 913 F. 2d 1515, 1518 (CA10 1990); In re Lemco Gypsum, Inc., 910 F. 2d 784, 788, and n. 19 (CA11 1990). The Second and Seventh Circuits, on the other hand, seem to have adopted a slightly different test. See In re Turner, 724 F. 2d 338, 341 (CA2 1983); In re Xonics, Inc., 813 F. 2d 127, 131 (CA7 1987); Home Ins. Co. v. Cooper & Cooper, Ltd., 889 F. 2d 746, 749 (CA7 1989). But whatever test is used, these cases make clear that bankruptcy courts have no jurisdiction over proceedings that have no effect on the estate of the debtor.

7 The dissent agrees that respondents' proceeding to execute on the supersedeas bond is "related to" Celotex's bankruptcy, post, at 318, n. 5, but noting that "only the district court has the power [under 28 U. S. C. 157(c)(1)] to enter 'any final order or judgment' " in related "[n]on-core proceedings," post, at 321-322, the dissent concludes that the Bankruptcy Court here did not possess sufficient "related to" jurisdiction to issue the Section 105 Injunction, post, at 322. The Section 105 Injunction, however, is only an interlocutory stay which respondents have yet to challenge. See infra, at 313. Thus, the Bankruptcy Court did not lack jurisdiction under 157(c)(1) to issue the Section 105 Injunction because that injunction was not a "final order or judgment."

In any event, respondents have waived any claim that the granting of the Section 105 Injunction was a noncore proceeding under 157(c)(1). Respondents base their arguments solely on 28 U. S. C. 1334, and concede in their brief that the "bankruptcy court had subject matter jurisdiction to issue orders affecting the bond, then, only if the proceedings on the bond were 'related' to the Celotex bankruptcy itself within the meaning of 1334(b)." Brief for Respondents 22. We conclude, and the dissent agrees, that those proceedings are so related. See post, at 317-318, and n. 5. We thus need not (and do not) reach the question whether the granting of the Section 105 Injunction was a "core" proceeding.


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