Showing posts with label Rule 17 - Dismissal of Actions. Show all posts
Showing posts with label Rule 17 - Dismissal of Actions. Show all posts

Dismissal upon motion of plaintiff



Sec. 2. Dismissal upon motion of plaintiff. — Except as provided in the preceding section, a complaint shall not be dismissed at the plaintiff's instance save upon approval of the court and upon such terms and conditions as the court deems proper. If a counterclaim has been pleaded by a defendant prior to the service upon him of the plaintiffs motion for dismissal, the dismissal shall be limited to the complaint. The dismissal shall be without prejudice to the right of the defendant to prosecute his counterclaim in a separate action unless within fifteen (15) days from notice of the motion he manifests his preference to have his counterclaim resolved in the same action. Unless otherwise specified in the order, a dismissal under this paragraph shall be without prejudice. A class suit shall not be dismissed or compromised without the approval of the court.


Notes:

● MOTION FOR LEAVE TO WITHDRAW THE COMPLAINT
● AFTER SERVICE of answer or of a motion for summary judgment to plaintiff
● APPROVAL of court and upon such terms and conditions court deems proper
● WITHOUT PREJUDICE unless otherwise specified
● dismissal limited to the complaint. If defendant filed a COUNTERCLAIM, the dismissal shall not affect the counterclaim
● Remedies of defendant:
(a) prosecute his counterclaim in a separate action
(b) opt to have it resolved in the same action (w/n 15 days from notice of the motion)
● CLASS SUIT: court approval before it can be dismissed or compromised


Q. When may a plaintiff dismiss his action with leave of court?
A. After a responsive pleading have already been served on the plaintiff or after a motion for summary judgment has already been served on the plaintiff. He can no longer dismiss as a matter of right. He can dismiss it only upon application and upon approval by the court of the motion.

But the dismissal under Sec. 2 Rule 17 even if granted by the court, maybe subject to certain conditions that the court may impose.

Q. What is the effect of the dismissal under Sec. 2 Rule 17?
A. It is still a dismissal without prejudice unless the court provides otherwise.

Q. Should a compulsory counterclaim be pleaded in the answer, what would be the effect of the dismissal under Sec. 2 Rule 17 on the counterclaim?
A. The counterclaim is not dismissed.

Q. In what proceeding may it therefore be prosecuted?
A. It may be prosecuted in the same case provided that within 15 days from receipt of motion to dismiss, the plaintiff manifest to the court that he desires that the counterclaim be litigated in the same case, otherwise, the counterclaim maybe litigated in a separate action.


A filed a case against B. B served on A his answer or his motion for summary judgment on January 10, 2012. On January 15, 2012, A files a motion of dismissal without leave of court. 

Q. Can he validly do that?
A. No.

Q. But can he still file it?
A. Yes, but with a proper motion that he be allowed to dismiss. That motion maybe granted by the court. If the court grants it, the court may impose a condition for the dismissal.

Q. Why is it no longer a matter of right on the part of the plaintiff to file a notice of dismissal after he has been served the answer or a motion for summary judgment?
A. Where B has a counterclaim, B has a right to have that counterclaim be litigated and resolved. So, if he (B) objects, the court may grant the motion but subject now to the dismissal of the action.

Q. What would be the effect of a motion of A to dismiss his complaint?
A. If the motion is granted on an Answer with counterclaim, the dismissal of the action is limited to the complaint. The counterclaim is unaffected. B, therefore, can litigate the counterclaim either in the same case or B may file in a separate action to enforce the counterclaim.

Q. When may B prosecute his counterclaim in the same case?
A. If within 15 days from receiving the notice of dismissal, he manifests to the court that he desires that his counterclaim be litigated in the same case, otherwise, the counterclaim must be litigated in a separate action.


Dismissal upon motion by plaintiff (Rule 17, Sec 2)

Once either an answer or motion for summary judgment has been served on the plaintiff, the dismissal is no longer a matter of right and will require the filing of a motion to dismiss, not a mere notice of dismissal. The motion to dismiss will now be subject to the approval of the court which will decide on the motion upon such terms and conditions as are just (Sec. 2, Rule 17). The dismissal under Sec. 2 is no longer a matter of right on the part of the plaintiff but a matter of discretion upon the court.


Effect of dismissal upon existing counterclaim

If a counterclaim has already been pleaded by the defendant prior to the service upon him of the plaintiff‘s motion to dismiss, and the court grants said motion to dismiss, the dismissal ―shall be limited to the complaint‖ (Sec. 2, Rule 17). The phraseology of the provision is clear: the counterclaim is not dismissed, whether it is a compulsory or a permissive counterclaim because the rule makes no distinction. The defendant if he so desires may prosecute his counterclaim either in a separate action or in the same action. Should he choose to have his counterclaim resolved in the same action, he must notify the court of his preference within fifteen (15) days from the notice of the plaintiff‘s motion to dismiss. Should he opt to prosecute his counterclaim in a separate action, the court should render the corresponding order granting and reserving his right to prosecute his claim in a separate complaint.

A similar rule is adopted in Sec. 6, Rule 16 and Sec. 3, Rule 17, wherein the dismissal of the counterclaim does not carry with it the dismissal of the counterclaim. The same provision also grants the defendant a choice in the prosecution of his counterclaim.

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Dismissal Upon Notice by Plaintiff



Sec. 1.
Dismissal upon notice by plaintiff. — A complaint may be dismissed by the plaintiff by filing a notice of dismissal at any time before service of the answer or of a motion for summary judgment. Upon such notice being filed, the court shall issue an order confirming the dismissal. Unless otherwise stated in the notice, the dismissal is without prejudice, except that a notice operates as an adjudication upon the merits when filed by a plaintiff who has once dismissed in a competent court an action based on or including the same claim. (Rule 17, Rules of Court)


Notes:

● NOTICE OF DISMISSAL
● BEFORE SERVICE of answer or of a motion for summary judgment
● Ministerial duty of court to issue order CONFIRMING the dismissal
● WITHOUT PREJUDICE, except:
- where notice states otherwise
- where plaintiff has previously dismissed case in court of competent jurisdiction
- where the dismissal is premised on the fact that the defendant has already paid the claim
● TWO-DISMISSAL RULE APPLIES when the plaintiff has:
(a) twice dismissed actions,
(b) based on or including the same claim,
(c) in a court of competent jurisdiction.


Example:

A filed a case against B. B received the summons on December 5, 2011. Under Sec. 1 Rule 11, B has until December 20, 2011 within which to file his answer. 

Q. Could A dismiss the case before B could file his Answer?
A. Yes. A complaint may be dismissed by the plaintiff at any time before service of the answer or of a motion for summary judgment. 

Q. How can A dismiss the case?
A. By filing a NOTICE OF DISMISSAL.

Q. What is the action that the court must take when a notice of dismissal is filed? Will it order the dismissal of the complaint?
A.  No. All that the court has to do is to confirm the dismissal. But there will be no legal objection if the court issues an order not only confirming the dismissal but also an order of dismissal. 

Q. When does the withdrawal take effect?
A. Upon order of the court confirming the dismissal. The requirement requiring an order confirming the dismiss is in keeping with the respect due the court.

Q. What is the effect of this dismissal of A?
A. It is a dismissal without prejudice except when the notice of dismissal stated that it is with prejudice.


On January 5, 2012, A re-filed the same case. B was summoned on Jan. 15, 2012. On January 20, 2012 and before B could file his Answer, A again dismissed the case by filing a second Notice of Dismissal. 

Q. What is the effect of the second notice of dismissal?
A. It is a dismissal with prejudice.

Q. Supposing in the notice of dismissal filed on Jan. 20, A said it is without prejudice, will the resulting dismissal be also without prejudice?
A. NO, because it is not for the plaintiff to characterize the effect of the dismissal as provided by law.

Q. Why is the dismissal with prejudice now?
A. Because Sec. 1 says, a dismissal produces a dismissal with prejudice if filed by a person who previously filed a notice of dismissal.

This is now a dismissal with prejudice regardless of what A stated in the notice of dismissal.

Q. Supposing the court issued the order saying that the dismissal is without prejudice, is that order valid?
A. No, because the court cannot characterize the effect of the second dismissal. The law provides the effect. It is always a dismissal with prejudice.


March 10, 2012, A filed a case against B. B now files a motion to dismiss on the ground of res judicata. He now says “this third complaint is barred by res judicata. The second dismissal produced by the filing on Jan. 20, 2012 is a dismissal with prejudice.

Q. Is the contention of B correct?
A. Yes. This must be now dismissed because this is barred by the second dismissal.

      
● It is not the order confirming the dismissal which operates to dismiss the complaint. As the name of the order implies, said order merely confirms a dismissal already effected by the filing of the notice of dismissal. The court does not have to approve the dismissal because it has no discretion on the matter. Before an answer or a motion for summary judgment has been served upon the plaintiff, the dismissal by the plaintiff by the filing of the notice is a matter of right. The dismissal occurs as of the date of the notice is filed by the plaintiff and not the date the court issues the order confirming the dismissal.

● Under the clear terms of Sec. 1, Rule 17, the dismissal as a matter of right ceases when an answer or a motion for summary judgment is served on the plaintiff and not when the answer or the motion is filed with the court. Thus, if a notice of dismissal is filed by the plaintiff even after an answer has been filed in court but before the responsive pleading has been served on the plaintiff, the notice of dismissal is still a matter of right.

● The second notice of dismissal will bar the refiling of the action because it will operate as an adjudication of the claim upon the merits. In other words, the claim may only be filed twice, the first being the claim embodied in the original complaint. Since as a rule, the dismissal is without prejudice, the same claim may be filed. If the refilled claim or complaint is dismissed again through a second notice of dismissal, that second notice triggers the application of the two-dismissal rule and the dismissal is to be deemed one with prejudice because it is considered as an adjudication upon the merits.
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