Chubb Pacific Indemnity Group v. Twin Lakes Village, Inc.

OPINION

Appellants filed in district court a complaint for damages against respondent. Respondent thereafter moved to dismiss the complaint on the ground that it was currently involved in Chapter XI bankruptcy proceedings. The district court granted respondent’s motion and dismissed appellants’ complaint without prejudice. This appeal followed. We reverse.

Appellants contend that the district court erred by dismissing their complaint without prejudice instead of staying their action until the bankruptcy proceedings initiated by respondent had been completed. We agree. Under Rule ll-44(a) of the…