What can one say upon learning that the oldest lawsuit in New York state finally came to a close:  "Do two sides still remember what they were fighting over?"  And, after congratulating Citigroup for coming out on top, should we console the loser with:  "Gee, better luck next time?"

The suit was first filed in 1966 by a construction materials supplier against the bank over the bank's alleged failure to act as a collection agent in a dispute over a Japanese construction project.  The supplier, Lance International, went bankrupt in 1965 and formally dissolved in 1975.

In February 2010, a New York court said Lance could resume pursuing its claim in the course of "winding up its affairs."  However, an appeal court panel ruled Lance had more than the "reasonable period" allowed under state law to wind up its affairs. 

So, while delays in the case were "partially attributable" to Citigroup, "ultimately it was plaintiff's duty to prosecute its case and it failed to do so," the court said upon issuing the dismissal requested by the bank.

Let that be a lesson to all attorneys in the Compliance-Insights audience.   [Reuters, 7/21/11]