diff --git a/rse/plugins/org.eclipse.rse.files.ui/src/org/eclipse/rse/files/ui/resources/SystemEditableRemoteFile.java b/rse/plugins/org.eclipse.rse.files.ui/src/org/eclipse/rse/files/ui/resources/SystemEditableRemoteFile.java
index 519eeb4e362..9123596c287 100644
--- a/rse/plugins/org.eclipse.rse.files.ui/src/org/eclipse/rse/files/ui/resources/SystemEditableRemoteFile.java
+++ b/rse/plugins/org.eclipse.rse.files.ui/src/org/eclipse/rse/files/ui/resources/SystemEditableRemoteFile.java
@@ -1,5 +1,5 @@
 /*******************************************************************************
- * Copyright (c) 2002, 2008 IBM Corporation and others.
+ * Copyright (c) 2002, 2009 IBM Corporation and others.
  * All rights reserved. This program and the accompanying materials
  * are made available under the terms of the Eclipse Public License v1.0
  * which accompanies this distribution, and is available at
@@ -36,6 +36,7 @@
  * David McKnight   (IBM)        - [247189] SystemEditableRemoteFile.openEditor() not updating the default editor properly
  * David McKnight   (IBM)        - [249544] Save conflict dialog appears when saving files in the editor
  * David McKnight   (IBM)        - [267247] Wrong encoding
+ * David McKnight   (IBM)        - [272772] Exception handling in SystemEditableRemoteFile
  *******************************************************************************/
 
 package org.eclipse.rse.files.ui.resources;
@@ -652,6 +653,7 @@ public class SystemEditableRemoteFile implements ISystemEditableRemoteObject, IP
 		catch (SystemMessageException e)
 		{
 			SystemMessageDialog.displayMessage(e);
+			return false;
 		}
 		if (monitor.isCanceled())
 		{