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Dialogue and action rules

edited June 2016 in Writing
Hey guys, been a while since I've been on here, but quick question. I've seen different styles of this sort of writing in books and can't find a clear answer on the internet, so I was wondering if any of you could help me out.

When another character's action or reaction is followed by another's speech, does it require a new line, or does it stay in the same. For example:

“The ship was wrecked during a storm,” Haroway said. “Detra and I are the only known survivors.” Squintal was shocked.
“I thought you two looked as though you had been travelling rough, but I had no idea to that extent. Come, I must feed and water you." Detra smiled to Haroway as they were led to the lower, cooler rooms beneath the villa and had their needs tended to.

Or

“The ship was wrecked during a storm,” Haroway said. “Detra and I are the only known survivors.”
Squintal was shocked. “I thought you two looked as though you had been travelling rough, but I had no idea to that extent. Come, I must feed and water you.”
Detra smiled to Haroway as they were led to the lower, cooler rooms beneath the villa and had their needs tended to.

Like I say, I've seen both types of writing used in a range of books. Is it just up the the writer's preferred style, or is there a rule?

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