In the Matter of International Airport Inn Partnership, Debtor. Margaret G. Schroeder v. International Airport Inn Partnership

Appellants are the major creditors of the International Airport Inn Partnership (“debtor”), a partnership once having as its principal asset a motel that was owned subject to the substantial claims of secured creditors. They appeal from a judgment of the United States District Court for the District of Arizona affirming a Referee’s dismissal of debt- or’s original petition filed pursuant to Section 322 of the Bankruptcy Act, 11 U.S.C. § 722 , for an arrangement under Chapter XI of the Bankruptcy Act, 11 U.S.C. § 701 et seq. The motion to dismiss was granted pursuant to Section 59g of the Bankruptcy Act, 11 U.S.C. § 95 (g), which governs dismissals upon the application of a petitioner. See 9 Collier on Bankruptcy, H 10.04 at 493 & n.15.

Section 59g is analogous to Rule 41(a)(2) of the Federal Rules of Civil Procedure, which controls voluntary dismissals in civil actions, and essentially the same, principles govern dismissals under either provision. Stern v. Barnett, 452 F.2d 211 (7th Cir. 1971); see C. Wright & A. Miller, Federal Practice and Procedure § 1016 (1971; Supp.1974). Ordinarily, the granting of a voluntary motion to dismiss rests within the sound discretion of…