The history of the Bankruptcy Court in the Western District of New York begins in 1898. Two years prior to the creation of the Western District, Congress enacted a statute known as the Bankruptcy Act of 1898. Section 1(7) of the Act defined Court to mean “the court of bankruptcy in which the proceedings are pending, and may include the referee.”¹ In July of 1898, William H. Hotchkiss was appointed to serve as referee for Erie County, which included the City of Buffalo.² At the time, Erie County “was the only bankruptcy [jurisdiction] in the Second Circuit which included a very large city in which there was no district judge in residence.”³

From its very beginning, the Bankruptcy Court for the Western District of New York became a leader in the development of the bankruptcy system. In particular, “Referee Hotchkiss played a significant role nationally in the initial implementation of the Bankruptcy Act.”⁴ He drafted local bankruptcy rules that became a model for consideration by referees throughout the United States.⁵ He also edited a revised edition of the treatise known as “Collier on Bankruptcy.”⁶ Helping to establish the National Association of Referees in Bankruptcy, Hotchkiss served as chair of its executive committee⁷ and later as president of that organization.⁸ In his role as executive committee chair, Hotchkiss organized the Association’s third annual convention, which was held in Buffalo in August of 1903. In appreciation for the work of Referee Hotchkiss, the convention approved a resolution “conferring on him the title of ‘The John Marshall of Bankruptcy,’ a title which was vigorously applauded.”⁹ William Hotchkiss would serve as referee until 1909, when Governor Charles Evans Hughes appointed him to serve as New York State Superintendent of Insurance.¹⁰

Under the 1898 Bankruptcy Act, referees were appointed for particular counties. Especially in rural areas, they would often perform their services on a part-time basis. This practice was continued under The Chandler Act of 1938,¹¹ which enacted a comprehensive amendment of the bankruptcy law. Compensation was paid per case. In the Western District of New York, 34 individuals served as a bankruptcy referee at one time or another through 1946.¹²

In that year, Congress enacted the Referees’ Salary Act.¹³ This legislation ended the prior fee system of compensation and placed referees on a fixed salary. For the Western District, this change caused a reduction in the number of referees from eight to two, who would respectively maintain offices in Buffalo and Rochester. These remaining referees would eventually serve full- time. As of October 1, 1973, the position of referee was changed to that of Bankruptcy Judge. Congress authorized the appointment of a third Bankruptcy Judge for the district in 1977.

Since implementation of the Referees’ Salary Act, the individuals serving as referees or judges in Buffalo have included James W. Persons, James R. Privitera, Beryl Edward McGuire, John H. Creahan, Michael J. Kaplan and Carl L. Bucki. The referees or judges serving in Rochester have included Nelson P. Sanford, C. Norbert Baglin, Austin J. Donovan, Edward Dennis Hayes, John C. Ninfo, II, and Paul R. Warren.

The Bankruptcy Referees and Judges of the Western District have worked to advance the development of the bankruptcy system. In 1928, Referee Persons was elected to serve as president of the National Association of Referees in Bankruptcy. This organization later became the National Conference of Bankruptcy Judges, and selected Judge Beryl E. McGuire of Buffalo to serve as its president in 1984. Both Judge Kaplan and Judge Bucki have served on the Board of Governors of that Conference, and Judge Bucki served as an Associate Editor of the conference’s scholarly publication, The American Bankruptcy Law Journal. The Chief Justice of the Supreme Court appointed Judge McGuire to serve on the Advisory Committee on Bankruptcy Rules, and appointed Judge Kaplan to serve on the Committee on Administration of the Bankruptcy System. From 1996 to 2000, Judges Kaplan, Ninfo and Bucki served on the Bankruptcy Appellate Panel for the Second Circuit.

The work of the Bankruptcy Court has included the implementation of the Bankruptcy Reform Act of 1978.     The Western District has also been a leader in the adoption of modern technology. In 1987, it was chosen as a pilot for the introduction of BANCAP, a computer system that allowed the electronic recording of docket entries. At various times, the Bankruptcy Court has conducted hearings at such locations as Jamestown, Dunkirk, Mayville, Olean, Batavia, Lockport, Niagara Falls, Elmira, Wellsville, Warsaw, Watkins Glen, Penn Yan, Canandaigua, Geneva, Dansville, Hammondsport and Bath. Since 2020, advances in technology have enabled the Bankruptcy Court to conduct remote hearings without the need to travel from Buffalo and Rochester.

From 1898 to 2024, the Bankruptcy Court for the Western District of New York has administered more than 425,000 cases. These have ranged from individuals to nationally recognizable corporations. The decisions of the Court have advanced the development of bankruptcy law. For example, the landmark Supreme Court case of United States v. Whiting Pools, Inc., originated from the Western District.¹⁴ The judges and staff of the Bankruptcy Court welcome the opportunity to continue their service to our region.

¹ Ch. 541, 30 Stat. 544. §1(7) (1898).
² Buffalo Evening News, July 29, 1898, p. 1.
³ Hon. Prudence Beatty Abram and Andrew DeNatale, “From Referee in Bankruptcy to Bankruptcy Judge: A Century of Change in the Second Circuit,” in The Development of Bankruptcy & Reorganization Law in the Courts of the Second Circuit of the United States, 69 – 70 (New York: Matthew Bender & Co., 1995).
⁴ Id. at 70.
⁵ Buffalo Sunday Morning News, March 25, 1900, p. 2.
⁶ Buffalo Evening News, April 22, 1903, p. 22.
⁷ Buffalo Evening News, August 29, 1901, p. 9.
⁸ Buffalo Evening News, April 22, 1903, p. 22.
⁹ The Buffalo Review, August 30, 1901, p. 8.
¹⁰ The Buffalo Evening News, February 5, 1909.
¹¹ 52 Stat. 840 (1938).
¹² Prior to 1946, the bankruptcy referees for the Western District of New York included George W. Babcock, Erwin J. Baldwin, Henry R. Bristol, Hermon A. Carmer, Barber B. Conable, Sr., Delmar M. Darrin, Frank H. Ferris, C.J. Hamlin, Charles A. Hawley, Edwin Hicks, Montford C. Holley, William Horace Hotchkiss, George D. Judson, John Knight, Herbert M. Lovell, Richard Marlowe, Arthur T. McAvoy, Humphrey McMaster, Roswell R. Moss, Leslie A. Pease, Vernon E. Peckham, James W. Persons, Mark T. Powell, Asa B. Priest, Nelson P. Sanford, Rollin W. Snow, Warner F. Thompson, Arthur B. Towne, Samuel R. Van Campen, Quincy Van Voorhis, Willet L. Ward, Edward A. Washburn, Joseph C. White and Charles M. Woodward.
¹³ Public Law 464 (79^th Congress).
¹⁴ 462 U.S. 198 (1983).