PERSONALIZED AIR CONDITIONING, INC., A FLORIDA CORPORATION, APPELLANT,
v.
C.M. SYSTEMS OF PINELLAS COUNTY, INC., A FLORIDA CORPORATION, AND THE TRAVELERS INDEMNITY COMPANY, A CONNECTICUT CORPORATION, APPELLEES
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Personalized Air Conditioning appealed the trial court's dismissal for lack of prosecution against Travelers Indemnity while keeping the case alive against C.M. Systems. The appellate court reversed, holding that an automatic bankruptcy stay prevented dismissal and that Florida Rule of Civil Procedure 1.420(e) prohibits partial dismissals in multi-party cases.
The trial court's dismissal of the case as to Travelers was error and void. The filing of C.M. Systems' bankruptcy petition created an automatic stay of all proceedings as of the petition date, rendering the dismissal action void. Additionally, Florida Rule of Civil Procedure 1.420(e) does not permit dismissal as to only some defendants when multiple parties remain in the suit.
[1] A bankruptcy petition automatically stays all proceedings against a debtor from the date of filing, rendering actions taken in violation of the stay void, even without ac…
[2] A motion to dismiss for failure to prosecute under Florida Rule of Civil Procedure 1.420(e) cannot be granted as to only some of the defendants in a case.
Previewing 2 of 4 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.
Join FLexlaw to unlock all legal intelligence“Filing of a petition in bankruptcy effectuates an automatic stay of all proceedings against a debtor effective the date the petition is filed and actions taken in violation of the stay are void even if there is no actual notice of the stay.”
Establishes the automatic nature of bankruptcy stay and voidness of actions violating it, supporting reversal of the dismissal
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Join FLexlaw to unlock all legal intelligencePersonalized Air Conditioning filed a Labor and Material Payment Bond complaint on July 2, 1985, against C.M. Systems (principal) and Travelers (suret…
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DOWNEY, Judge.
On or about July 2, 1985, appellant filed a complaint under a Labor and Material Payment Bond against C.M. Systems of Pinellas County, Inc., as principal, and The Travelers Indemnity Company, as surety.
On August 14, 1985, Travelers and C.M. Systems filed a motion to dismiss, and on September 16, 1985, a motion to strike and to transfer. Except for the filing of a Notice of Substitution of Counsel on April 22, 1986, these motions were the last “record activity” in the court file prior to Travelers’ filing a motion to dismiss for failure to prosecute on or about December 3, 1986.
On April 25, 1986, C.M. Systems filed a petition in bankruptcy in the federal district court; however, no formal written notice thereof was filed in the trial court in this case until December 30, 1986.
Nevertheless, on January 9, 1987, the trial court entered an order requiring the parties to show cause why the action should not be dismissed for lack of prosecution. Appellant filed a response and, at the hearing on the rule, counsel for the appellant advised the court that appellee, C.M. Systems, had filed a petition in bankruptcy during the pendency of the suit, thus automatically staying the cause.
The trial court then entered its order dismissing the cause as to Travelers for failure to prosecute and allowed the cause to remain pending against appellee, C.M. Systems.
Appellant contends on appeal that the trial court erred in dismissing the cause as to Travelers because 1) the cause had been automatically stayed by C.M. Systems’ filing of the petition in bankruptcy, and 2) Florida Rule of Civil Procedure 1.420(e) precludes dismissal as to only one of several parties for lack of prosecution.
The record indicates that the trial court was advised prior to entry of the order of dismissal that C.M. Systems had filed a petition in bankruptcy some seven or eight months prior thereto. Filing of a petition in bankruptcy effectuates an automatic stay of all proceedings against a debtor effective the date the petition is filed and actions taken in violation of the stay are void even if there is no actual notice of the stay. Kalb v. Feverstein, 308 U.S. 433, 60 S.Ct. 343, 84 L.Ed. 370 (1940); Pope v. Manville Forest Products Corporation, 778 F. 2d 238 (5th Cir.1985); 2 Collier on Bankruptcy ¶¶ 362.03, 362.11 (L. King 15th ed. 1985).
Thus, this proceeding was automatically stayed and the trial court’s action in dismissing it was void.
Furthermore, under Florida Rule of Civil Procedure 1.420(e) a motion to dismiss for failure to prosecute may not be granted as to some of the defendants in a case and not as to others. As the court said in Bowman v. Peele, 413 So. 2d 90, 91 (Fla. 2d DCA 1982):
Where the court has acquired jurisdiction over all of the parties, a motion to dismiss for failure to prosecute pursuant to Florida Rule of Civil Procedure 1.420(e) will not lie as to an individual party.
Accordingly, if an action is stayed as to one or more of the parties either by court order or by an automatic stay invoked because of the federal bankruptcy act, it will not be dismissed for failure to prosecute. To hold otherwise would frustrate the purpose of the rule which is to expedite and simplify litigation, not to cause additional litigation through no fault of the one moved against. It is true that the appellant could have proceeded against the appel-lee individually, but to do so, without severing the cause of action, would not have expedited the litigation. Action against the appellee would not have affected the other defendants and accordingly would not have advanced the entire case toward its ultimate disposition.
Thus, dismissal of Travelers, leaving the case pending against C.M. Systems, was error. Accordingly, the order appealed from is reversed and the cause is remanded for further proceedings.
WALDEN, J., and SHARP, WINIFRED J., Associate Judge, concur.
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Citator
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Togo's Eatery OF Fla., Inc. v. Frohlich, 526 So. 2d 999 (Fla. 1st DCA 1988)…972). Dismissal for failure to prosecute is not available in those cases in which there has been a court ordered stay or an automatic stay, as in a bankruptcy proceeding. Personalized Air Conditioning, Inc. v. C.M. Systems of Pinellas County, Inc., 522 So. 2d 465 (Fla. 4th DCA 1988); Rudolf v. Chase, 468 So. 2d 494 (Fla. 4th DCA), review denied, 479 So. 2d 117 (Fla.1985); Bowman v. Peele, 413 So. 2d 90 (Fla.2d DCA 1982); DeLuca v. Harriman, 402 So. 2d 1205 (Fla. 2d DCA 1981), review denied, 412 So. 2d 465 (F…
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Ormond Beach Assocs. Ltd. v. Citation Mortg., Ltd., 835 So. 2d 292 (Fla. 5th DCA 2002)…y court rescinded its order lifting of the automatic stay. As such, the void order could not constitute a bar to the filing of a voluntary dismissal under rule 1.420. See Personalized Air Conditioning, Inc., v. C.M. Systems of Pinellas County, Inc., 522 So. 2d 465 (Fla. 4th DCA 1988)(explaining that trial court proceeding is automatically stayed upon filing of a petition in bankruptcy so any trial court order entered during stay is void). As for prong two of the rule 1.420 analysis, Ormond Beach argues that…
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Dolan v. Hartford Ins. Co. OF THE Se., 566 So. 2d 316 (Fla. 4th DCA 1990)…eriod of inactivity in this case. An action effectively stayed as to a party, whether by court order or automatic stay, should not be dismissed for failure to prosecute. Personalized Air Conditioning, Inc. v. C. M. Systems of Pinellas County, Inc., 522 So. 2d 465 (Fla. 4th DCA 1988); Bowman v. Peele, 413 So. 2d 90 (Fla. 2d DCA), appeal dismissed, 419 So. 2d 1199 (1982). In Personalized Air Conditioning, Inc., this court also recognized that an action may not be dismissed for failure to prosecute notwithstand…
Previewing 3 of 14 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Kalb et ux. v. Feuerstein et ux., 308 U.S. 433 (U.S. 1940)
- Bowman v. Peele, 413 So. 2d 90 (Fla. 2d DCA 1982)
- Pope v. Manville Forest Prods. Corp., 778 F.2d 238 (5th Cir. 1985)