The court heard a receiver's motion to vacate a Letter of Credit posted as security in a civil action arising from a commission claim connected to a real estate development.
Applying r. 59.06(2) of the Rules of Civil Procedure, the court held the moving party had not shown changed circumstances sufficient to justify cancelling the security, particularly given ongoing management concerns, accumulating expenses, and subsequent lien registrations.
The court found the plaintiff's underlying claim appeared strong and declined to leave any eventual recovery to the receiver's court-approved distribution process.
The motion was dismissed on the request to cancel the Letter of Credit, but granted as to reimbursement of the carrying costs of the Letter of Credit and discharge of the plaintiff's mortgage.
