SEC v. Barton
Split Score
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Case Summary
Disposition
Dismissed
The Fifth Circuit dismissed Timothy Barton’s interlocutory appeal challenging the district court’s order lifting a bankruptcy stay contained in an SEC receivership order. The panel held it lacked jurisdiction because the order was an administrative receivership matter not appealable under 28 U.S.C. § 1292(a)(1) or (a)(2) and did not fall within the collateral-order doctrine; it also directed Barton to show cause why sanctions should not be imposed for filing a frivolous appeal.
Circuit Split Identified
Legal Issue
Whether a district court order appointing (or modifying) a federal equity receiver that incorporates a stay of related litigation is an appealable injunction under 28 U.S.C. § 1292(a)(1).
Circuit Positions
Receivership orders (including stays) are NOT appealable injunctions under § 1292(a)(1); appeals lie, if at all, under § 1292(a)(2) and only for refusals to wind-up the receivership.
Receivership orders that impose a litigation stay ARE appealable injunctions under § 1292(a)(1), giving courts of appeals jurisdiction to review them immediately.
Conflict Summary
The Fifth, Sixth, and Eleventh Circuits hold that receivership orders that merely include a stay on ancillary proceedings are not appealable as injunctions under § 1292(a)(1) because § 1292(a)(2) specifically governs receivership orders; conversely, the Third and Ninth Circuits treat such orders as appealable injunctions under § 1292(a)(1), allowing immediate interlocutory review.