Jv Prop.'s, LLC v. Dist. Ct. (Sv Litig. Spe, LLC) ( 2016 )

IN THE SUPREME COURT OF THE STATE OF NEVADA
JV PROPERTIES, LLC, A NEVADA No. 69411
LIMITED LIABILITY COMPANY,
Petitioner,
vs.
THE EIGHTH JUDICIAL DISTRICT
COURT OF THE STATE OF NEVADA,
FILED
IN AND FOR THE COUNTY OF AUG 0 9 2016
CLARK; AND THE HONORABLE
MICHAEL VILLANI, DISTRICT
JUDGE,
Respondents,
and
SV LITIGATION SPE, LLC, A NEVADA
LIMITED LIABILITY COMPANY,
Real Party in Interest.
ORDER DISMISSING PETITION
Petitioner JV Properties, LLC, has filed a suggestion of
bankruptcy notifying this court that a voluntary petition for relief under
Chapter 11 of the Bankruptcy Code in the United States Bankruptcy
Court for the District of Nevada has been filed. A copy of a Voluntary
Petition for Non-Individuals Filing for Bankruptcy is attached to the
motion.
The filing of a Chapter 11 petition operates to stay,
automatically, the "continuation" of any "judicial. . . action. . . against the
[bankruptcy] debtor." 11 U.S.C. § 362(a)(1) (2010). A petition for
extraordinary relief in an ongoing action, for purposes of the automatic
bankruptcy stay, is considered a continuation of the action in the trial
court. See, e.g., Ingersoll-Rand Fin. Corp. v. Miller Mining Co., 817 F.2d
1424 (9th Cir. 1987). Consequently, a writ proceeding is automatically
stayed if the debtor was a defendant in the underlying trial court action.
SUPREME COURT
OF
NEVADA
10) 1947A e
Id. It appears that JV Properties is a defendant below. Therefore, this
matter is stayed pursuant to the automatic stay provisions of federal
bankruptcy law.
Given the applicability of the automatic stay, this petition 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 the petition is dismissed without prejudice. Because
a dismissal without prejudice will not require this court to reach the
merits of the petition and is not inconsistent with the primary purposes of
the bankruptcy stay—to provide protection for debtors and creditors—we
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 (9th 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 thefl underlying case").
Accordingly, we dismiss this petition. This dismissal is without prejudice
to JV Properties' right to move for reinstatement of this petition upon
'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 (9th 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
(0) 194,A ce
2
either the lifting of the bankruptcy stay or final resolution of the
bankruptcy proceedings, if it deems such a motion appropriate at that
time.
It is so ORDERED.
Hardesty
Saitta
cc: Hon. Michael Villani, District Judge
Reid Rubinstein Bogatz
Fox Rothschild, LLP, Las Vegas
Mazur & Brooks, A PLC
Eighth District Court Clerk
SUPREME COURT
OF
NEVADA
10) I947A
3