were served with a copy of respondent's notice and have not filed any
response.
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
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 (9( 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 appellants' right to move for reinstatement of this appeal
upon either the lifting of the bankruptcy stay or final resolution of the
'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.
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bankruptcy proceedings, if appellants deem such a motion appropriate at
that time. 2
It is so ORDERED.
iXç
Hardesty
C .-DE)VetLzA, J.
Douglas
cc: Hon. Patrick Flanagan, District Judge
Robert L. Eisenberg, Settlement Judge
Woodburn & Wedge
Armstrong Teasdale, LLP/Reno
Robison Belaustegui Sharp & Low
Washoe District Court Clerk
2 Anysuch motion to reinstate the appeal must be filed within 60
days of entry of an order lifting of the stay or conclusion of the bankruptcy
proceedings.
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