At a contested status hearing under Rule 48.14 of the Rules of Civil Procedure, the defendant sought dismissal of an investment-related civil action for delay.
The plaintiffs alleged negligent investment advice, breach of fiduciary duty, breach of contract, and negligent misrepresentation relating to the commutation of pensions into risky investments.
Applying the two-part conjunctive test from appellate jurisprudence, the court considered whether the plaintiffs provided an acceptable explanation for the delay and whether the defendant would suffer non-compensable prejudice if the action continued.
The court found the delays were reasonably explained by ongoing regulatory complaints, counsel changes, procedural steps, and motions in the litigation.
The plaintiffs also successfully rebutted any presumption of prejudice because relevant documents were largely in the defendant’s possession and witnesses remained available.