Nevada Supreme Court, 2019

Rjrn Holdings, LLC v. Ditech Fin., LLC

Rjrn Holdings, LLC v. Ditech Fin., LLC
Nevada Supreme Court · Decided March 4, 2019

Rjrn Holdings, LLC v. Ditech Fin., LLC

Opinion

IN THE SUPREME COURT OF THE STATE OF NEVADA

RJRN HOLDINGS, LLC, A NEVADA No. 77177 LIMITED LIABILITY COMPANY, vs. Appellant, FF z

DITECH FINANCIAL, LLC, MAR u 2019 Respondent.

EL!

CLE BY ORDER DISMISSING APPEAL 1)•-• ci CLERK Counsel for respondent has filed a notice informing this court that respondent has filed a bankruptcy petition. The filing of a bankruptcy petition operates to stay, automatically, the "continuation" of any -judicial . . . action . . . against the debtor." 11 U.S.C. § 362(a)(1). An appeal, for purposes of the automatic stay, is considered a continuation of the action in the trial court. Consequently, an appeal is automatically stayed if the debtor was the defendant in the underlying trial court action. See Ingersoll- Rand Financial Corp. u. Miller Mining, Co. Inc., 817 F.2d 1424 (9th Cir. 1987). It appears that respondent was a defendant below. Therefore, this appeal is stayed pursuant to the automatic stay provisions of federal bankruptcy law.

Given the applicability of the automatic stay, this appeal may linger indefinitely on this court's docket pending final resolution of the bankruptcy proceedings. Accordingly, we conclude that judicial efficiency will be best served if this appeal is dismissed without prejudice. Because a dismissal without prejudice will not require this court to reach the merits of this appeal and is not inconsistent with the primary purposes of the bankruptcy stay—to provide protection for debtors and creditors—we

SUPREME COURT OF NEVADA

(OJ 194T% TTC:TTT. further conclude that such dismissal will not violate the bankruptcy stay.' See Independent Union of Flight Attendants v. Pan American World Airways, Inc., 966 F.2d 457, 459 Cir. 1992) (holding that the automatic stay does not preclude dismissal of an appeal so long as dismissal is "consistent with the purpose of the statute [11 U.S.C. §362(a)"]; Dean v. Trans World Airlines, Inc., 72 F.3d 754, 755 (9th Cir. 1995) (holding that a post-bankruptcy petition dismissal will violate the automatic stay "where the decision to dismiss first requires the court to consider other issues presented by or related to the underlying case").

Accordingly, we dismiss this appeal. This dismissal is without prejudice to any party's right to move for reinstatement of this appeal within 90 days of either the lifting of the bankruptcy stay or final resolution of the bankruptcy proceedings, if that party deems such a motion appropriate at that time.

It is so ORDERED.

Piet!

Pickering

' J.

Parraguirre Cadish

'The automatic stay provides a debtor "with protection against hungry creditors" and gives it a "breathing spell from its creditors" by stopping all collection efforts. Dean v. Trans World Airlines, Inc.. 72 F.3d 754, 755 (9"h Cir. 1995). Further, it assures creditors "that the debtor's other creditors are not racing to various courthouses to pursue independent remedies to drain the debtor's assets." Id. At 755-6.

SUPREME COURT OF NEVADA ((1) I 947A 44Ga;c• cc: Hon. Susan Johnson, District Judge Paul M. Haire, Settlement Judge The Law Office of Mike Beede, PLLC Wright, Finlay & Zak, LLP/Las Vegas Eighth District Court Clerk

SUPREME COURT OF NEVADA (0) I947A

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