SEC v. Barton

Circuit 5Jun 3, 2026

Split Score

SplitScore: 62/100

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.

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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

Circuit 5(this circuit)Circuit 6Circuit 11

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.

Circuit 3Circuit 9

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.

Parties & Counsel

Parties

Appellant:Timothy Barton
Appellee:Securities and Exchange Commission