Mancini Shenk Lawyers Achieve Complete Dismissal of Nine-Figure Lawsuit

Founding Partners Michael V. Mancini and John W. Shenk obtained the complete dismissal of a lawsuit alleged to be worth “hundreds of millions” of dollars that was filed against one of Mancini Shenk LLP’s longstanding clients.

The lawsuit, entitled SBG Holdings, LLC, et al. v. Richard Acosta, et al., began in Santa Barbara County in 2020. The plaintiffs complained that the many defendants, some represented by Mancini Shenk and others represented by other firms, had conspired to steal a lucrative business opportunity.

After the defendants attacked the allegations as false and unsupportable, the case was transferred to Los Angeles County. In Los Angeles, our clients aggressively pursued discovery and continued attacking the allegations.

Under the immense pressure brought by Mancini Shenk LLP and other firms, the plaintiffs repeatedly failed to meet deadlines, participate in the discovery process, or show up in court. The plaintiffs were given second and third chances but wasted them. Finally, it was time to pay the piper. On August 10, the court dismissed the entire case for lack of prosecution:

“PLEASE TAKE FURTHER NOTICE that after considering their failure to appear at the OSC Hearing and status conference despite having been ordered to appear, and after considering their previous failure to appear at the July 7 hearing on the Court’s prior Order to Show Cause Re Dismissal for Lack of Prosecution despite being ordered to appear, and based upon a thorough review of the dockets in the Lead and Related Cases, and based upon the Court’s finding that the dockets reveal a lack of attention to the cases and a failure to prosecute, and after considering the Joint Report filed on August 5 and finding it accurate, the Court ruled as follows:

. . . The entire Related Case (No. 21STCV38547) is dismissed without prejudice because of NORTH STAR HOLDINGS, INC. and SBG HOLDINGS, LLC’s failure to prosecute.”

The lessons for litigants are clear. First, do not bring lawsuits you do not intend to finish. Second, do not bring lawsuits and then abandon them unless you wish for them to be dismissed. Third, obey court orders. And fourth, California’s courts are not venues for airing mild grievances in the guise of meritorious litigation; they are the battleground where real disputes are adjudicated according to the law. Cases without merit will be dismissed.

Contact our litigators for a consultation if litigation is being threatened or brought against you. It is our business to solve those problems.

To read the notice of the court’s ruling in full, please click here.