Simulnet East Associates v. Ramada Hotel Operating Company

37 F.3d 573 SIMULNET EAST ASSOCIATES, a New York limited partnership d/b/a Simulnet L.P.; Cable/Mac Services, Inc., a New York corporation, general partner, Plaintiffs-Appellants, v. RAMADA HOTEL OPERATING COMPANY, a Delaware corporation; Jose L. Torres, an individual, Defendants-Appellees. No. 92-16737. United States Court of Appeals, Ninth Circuit. Argued and Submitted Feb. 11, 1994. Decided Oct. 7, 1994. J. Randall Jones and William L. Coulthard, Harrison, Kemp & Jones, Las Vegas, NV, for plaintiffs-appellants. David N. Frederick, Lionel Sawyer & Collins, Las Vegas, NV, for defendants-appellees. Appeal from the United States District Court for the District of Nevada. Before: HUG, FARRIS, and O'SCANNLAIN, Circuit Judges. HUG, Circuit Judge: 1 The sole issue in this diversity action is whether the district court abused its discretion in requiring, on the eve of trial, a $500,000 cost bond as a condition to proceeding to trial. The litigation had proceeded for three years without a demand for a cost bond. The district court granted defendants' motion for a bond five days before trial. When the plaintiffs were unable to post the bond, the district court dismissed the…