Mounir v. Citigroup Global Markets Holdings Inc.

Background

Andrew Mounir sued Citigroup Global Markets Holdings, Inc. over financial losses he experienced from an investment in exchange-traded notes linked to the price of crude oil. Mounir alleged that Citigroup contributed to those losses through “fraudulent tracking” and “under track[ing]” a crude oil index. The opinion identifies Mounir as a self-represented plaintiff.

Service and missed deadlines

In May 2021, the court ordered the Clerk of Court to issue a summons and directed Mounir to serve Citigroup with the summons and complaint within 90 days after the summons was issued. The court warned that it could dismiss the claims under Rules 4 and 41 of the Federal Rules of Civil Procedure if Mounir did not complete service or request an extension.

The Clerk issued the summons on May 5, 2021. After 90 days, the docket did not show that Mounir had served Citigroup, and Mounir had not requested more time. On August 31, 2021, the court gave him two additional weeks to complete service. Months later, the docket still did not show service. On May 12, 2022, the court ordered Mounir to explain in writing why he had not served Citigroup and warned that the case would be dismissed unless he showed good cause by May 26, 2022. Mounir missed that deadline as well.

Ruling

Rule 41(b) allows a federal district court to dismiss an action when a plaintiff fails to prosecute the case or comply with court rules or orders. Judge J. Paul Oetken concluded that dismissal without prejudice was appropriate because Mounir had delayed for more than a year after being ordered to serve Citigroup, had been warned that further delay could lead to dismissal, and had disregarded prior court orders. The court also stated that dismissal balanced reducing court delays with protecting a party’s opportunity to be heard.

Disposition

The action was dismissed without prejudice to refiling. The Clerk of Court was directed to mail Mounir a copy of the order and close the case.