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August 12, 1999
BY HAND
The Honorable Leo E. Strine, Jr.
Vice Chancellor
Court of Chancery
Daniel L. Herrmann Courthouse
1020 N. King Street
Wilmington, DE 19801
Re: Harbor Finance Partners v. Sugarman, et al.,
Civil Action No. 14834
Dear Vice Chancellor Strine:
We have received plaintiff's counsel's August 4, 1999
letter requesting that the Court decide plaintiff's motion to
compel. Plaintiff's motion need not be decided
plaintiff lacks standing to maintain this derivative action and,
accordingly, this action should be dismissed. A
of defendants' motion to dismiss, filed today with the Register
in Chancery, is enclosed.
Plaintiff purports to bring this action derivatively
on behalf of Rally's Hamburgers, Inc.
settled Delaware law, "[t]o have standing to maintain a
shareholder derivative suit, a plaintiff must . . . remain a
shareholder throughout the litigation." Kramer v. Western
Indus., Inc., Del. Supr., 546 A.2d 348, 354 (1988); see also 8
Del. C. tj 327; Ct. Ch. R. 23.1. As a consequence of this
SNIPPETS:
The Honorable Leo E. Strine,
Vice Chancellor Court of Chancery
Dear Vice Chancellor Strine:
We have received plaintiff's counsel's August 4, 1999 letter requesting that the Court decide
plaintiff lacks standing to maintain this derivative action and,
of defendants' motion to dismiss, filed today with the Register in Chancery, is enclosed.
Plaintiff purports to bring this action derivatively
shareholder derivative suit, a plaintiff must.
Supr., 546 A.2d 348, 354;
Merritt v. Colonial Foods, Inc., Del.
Supr., 477 A.2d 1040, 1049 ("A plaintiff who ceases to be a shareholder whether by reason of
plaintiff is no longer a stockholder in Rally's and lacks
should be dismissed and plaintiff's motion to compel is moot.
Given the uncontested fact of the merger of Rally's into Checkers and the clear impact under
event Your Honor has any questions regarding defendants' motion, counsel will, of course,
Enclosure
Register in Chancery Peter B. Ladig, Esquire Carmella P. Keener, Esquire
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