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Showing 1 post in Rule 15 Relation Back.

Lengthy Service Oversight Causes the Bankruptcy Court to Dismiss Preference Claims

Forman v. Mentor Graphics Corp. (In re Worldspace, Inc.), Adv. No. 10-53286 (PJW), (Bankr. D. Del. June 5, 2014)

On June 5, 2014, Judge Walsh granted a motion to dismiss filed by a preference defendant, holding that the amended complaint which added the defendant to the proceeding could not relate back to the date of the original complaint under Federal Rule of Civil Procedure 15(c)(1)(C) so as to avoid the expiration of the applicable statute of limitations.  In rendering his decision, Judge Walsh found significant the plaintiff’s failure to properly serve the original defendant with five of its nine motions to extend time to serve process of the original complaint. While the Court does not condemn the use of extension motions to facilitate a reorganization or to serve an equitable or procedural purpose, this Opinion serves as a warning to plaintiffs’ counsel who delay effectuating service of a complaint until after the expiration of the applicable statute of limitations. Read More ›