In FDIC v. Kendrick, 897 S.W.2d 476, 481 (Tex. App.-Amarillo 1995, no writ), the Court held that "It is well established that neither settlement activity nor the passive attitude of opposing parties excuses a want of diligent prosecution." Id.
After several trial settings and considerable discovery proceedings, in July 1993, FDIC's counsel announced to the trial court that a tentative settlement agreement had been reached, subject to final approval by the various committees of the FDIC. Id.
On August 4, 1993, the trial court notified the parties that it expected the agreement to be consummated not later than October 8, 1993. Id.
The FDIC failed to comply with the court's explicit order even in view of the trial court's express threat to dismiss the case for non-compliance. Id.