In insolvency proceedings involving a corporate plaintiff in receivership, the defendant moved to dismiss the related civil action for delay, relying primarily on Rule 11 of the Rules of Civil Procedure and alleging prejudice arising from the receiver’s failure to obtain an order to continue following the appointment of a receiver.
After issuing an earlier endorsement approving the receiver’s conduct and the assignment of the claim, the court clarified that the defendant had intended to maintain its Rule 11 motion despite abandoning its Rule 24 delay motion.
The court held that the receiver had acted reasonably during the stay period and that the time taken to assess and assign the claim did not constitute unacceptable delay.
Allegations of prejudice, including the death of a witness and departure of employees, were unsupported by evidence and did not establish real prejudice.
The motion to dismiss was therefore formally dismissed.
