Schonfeld Inc., acting as a court-appointed Monitor and Receiver, sought to dismiss an action commenced against it by the monitored parties for alleged failure to engage in tax planning.
The monitored parties commenced the action without obtaining leave of the court and subsequently brought a motion for leave nunc pro tunc.
The court held that leave was required under the terms of the Monitor and Receiver Orders.
The court refused to grant leave nunc pro tunc, finding that the proposed claim lacked foundation because the Receiver's mandate did not include tax planning, and the pleadings failed to establish gross negligence or wilful misconduct as required to overcome the Receiver's discharge and release.
The action and a related crossclaim were dismissed.