Olvera v. Giurbino, 371 F.3d 569 (9th Cir. June 08, 2004) (abuse of discretion where district court failed to allow defendant to stay habeas petition so he could properly exhaust claims without having his petition bared by the statute of limitations).
http://caselaw.lp.findlaw.com/data2/circs/9th/0256134p.pdf