Misuraca

BACKGROUND

In July 2006, Misuraca filed suit to recover $57,451.61 in allegedly unpaid attorney‟s fees and costs from the Lyons and from Nacio Systems, Inc. (Nacio), which had allegedly guaranteed payment on behalf of Lyons. Lyons cross-complained against Nacio for indemnity. Nacio filed a cross-complaint against the Lyons for indemnity,

1 contribution and for damages for malfeasance in office, fraud, and wrongful conversion of corporate assets. Nacio filed for bankruptcy and, in February 2008, filed a notice of an automatic stay in the superior court. The notice of stay stated that it applies to the parties “Nacio Systems, Inc., a Nevada corporation, David Lyons, [and] Phyllis Lyons.” In a December 19, 2008 case management statement, Nacio stated, in regard to when it would not be available for trial: “Case is subject to Bankruptcy Court stay for Nacio Systems (Nevada) and by court and counsel‟s agreement is stayed as to all parties pending bankruptcy resolution due to central position Nacio Nevada plays in the proceedings.” Nacio stated this again in its March 24, 2009 case management statement, but moved it to the “Other Issues” section as an additional matter to be…