A North Carolina Business Court has dismissed an appeal and claims in a long-standing case involving Pacific Alliance Corporation and the Menscer family. The court's decision, issued on August 31, 2026, affects the parties involved and aims to resolve a case that had been stalled for nearly a decade.
The Menscer family, consisting of Randal, Eric, and Troy Menscer, had been pursuing claims against Pacific Alliance Corporation and several individuals associated with it. The case has faced numerous delays, particularly due to the bankruptcy filing of Pacific Alliance in 2017. The court's ruling is significant as it clears the way for the Menscers to move forward after years of uncertainty.
Background
The dispute began in 2016 when the Menscers filed claims against Pacific Alliance Corporation, its executives, and others. The Menscers claimed both directly and derivatively on behalf of Star Leasing, Inc., a North Carolina corporation. The case has seen various developments, including a partial summary judgment granted to the Menscers in June 2017, which was subsequently appealed by the defendants.
However, the appeal never progressed, primarily due to the bankruptcy filing of Pacific Alliance in late 2017. This filing triggered an automatic stay of all proceedings related to the corporation, effectively halting any further action in the case. The bankruptcy proceedings concluded in January 2026, but the delay left many issues unresolved.
The Ruling
In the recent ruling, Judge Adam M. Conrad addressed the Menscers' motion to dismiss the appeal and any claims that had been pending. The court found that the defendants had effectively abandoned their appeal, stating, "The appellants have abandoned their appeal." The court noted that the defendants had not taken necessary steps to perfect their appeal or respond to the ongoing litigation.
The court also found that the lack of participation from Pacific Alliance and its executives constituted an unreasonable delay in the litigation process. Judge Conrad stated, "This goes beyond a ‘mere passage of time’ and constitutes an unreasonable delay, amounting to an abandonment of the action." The court granted the Menscers' motion to dismiss both the appeal and the claims against them.
Impact
This ruling has significant implications for the parties involved. By dismissing the appeal and the claims, the court has effectively closed a chapter on a case that has lingered for nearly a decade. The Menscers can now pursue other avenues for resolution without the uncertainty created by the abandoned appeal.
The decision also sets a precedent regarding the handling of abandoned appeals and the responsibilities of parties in litigation. It underscores the importance of active participation in legal proceedings and the potential consequences of inaction. The court's ruling may encourage other litigants to remain engaged in their cases to avoid similar outcomes.
What's Next
The court has ordered the parties to submit a joint status report by September 14, 2026, detailing the remaining matters for resolution. While the dismissed claims cannot be appealed, the case's resolution may lead to further legal actions or settlements among the remaining parties.