Stephenson v. MERRILL LYNCH, PIERCE, FENNER
Stephenson v. MERRILL LYNCH, PIERCE, FENNER
Opinion
This is an appeal from a dismissal for a failure to prosecute. Paula J. Stephenson *Page 308
sued Merrill Lynch, Pierce, Fenner Smith, Inc. ("Merrill Lynch"), on March 21, 2002, alleging that Merrill Lynch was liable for both negligence and the breach of a contract with her regarding the management of her financial accounts. Merrill Lynch moved to compel arbitration and for a stay of the action pending arbitration. On June 4, 2002, the trial court granted that motion, noting that "this case is held in abeyance while the parties arbitrate the case." No other motions were filed and no other actions were taken in the case until February 16, 2005, when the trial court, sua sponte, entered an order stating, "[t]his case is hereby dismissed for lack of prosecution." Stephenson timely appealed to our supreme court, which transferred this case to this court, pursuant to §§
In Smith v. Wilcox County Board of Education,
"The general rule, of course, is that a court has the inherent power to act sua sponte to dismiss an action for want of prosecution. Link v. Wabash R. Co.,
370 U.S. 626 ,82 S.Ct. 1386 ,8 L.Ed.2d 734 (1962). However, since dismissal with prejudice is a drastic sanction, it is to be applied only in extreme situations. Brown v. Thompson,430 F.2d 1214 (5th Cir. 1970); Durham v. Florida East Coast Ry. Co.,385 F.2d 366 (5th Cir. 1967)."Therefore, appellate courts will carefully scrutinize such orders and occasionally will find it necessary to set them aside. 9 Wright Miller, Federal Practice Procedure, §§ 2370, p. 203, n. 1; see, e.g., Connolly v. Papachristid Shipping, Ltd.,
504 F.2d 917 (5th Cir. 1974); Flaksa v. Little River Marine Construction Co.,389 F.2d 885 (5th Cir.), cert. den.,392 U.S. 928 ,88 S.Ct. 2287 ,20 L.Ed.2d 1387 (1968)."The Fifth Circuit Court of Appeals follows the rule that a trial judge may dismiss with prejudice an action 'only in the face of a clear record of delay or contumacious conduct by the plaintiff.' Durham v. Florida East Coast Ry. Co., supra, followed in Pond v. Braniff Air-ways, Inc.,
453 F.2d 347 (5th Cir. 1972); Boazman v. Economics Laboratory, Inc.,537 F.2d 210 (5th Cir. 1976). Several other circuits follow that rule. See 9 Wright Miller, Federal Practice Procedure, §§ 2369, p. 194-95, n. 70. Other courts refer to a 'serious showing of willful default.' Gill v. Stolow,240 F.2d 669 (2nd Cir. 1957); Dabney v. Burrell,67 F.R.D. 132 (D.Md. 1975)."Consequently, it appears that the plaintiffs conduct must mandate the dismissal. Brown v. Thompson, supra."
Smith,
If there is a clear record indicating that Stephenson caused a delay or committed contumacious conduct, then it would appear that such conduct would mandate a dismissal. Smith,
Additionally, there are several practical considerations that weigh in favor of not dismissing with prejudice a case with circumstances such as these. As our supreme court observed in Mostella v. N N Motors,
"When a trial court enters an order compelling arbitration, a stay of the proceedings in the trial court during the pendency of the arbitration protects the plaintiff from facing the prospect of the expiration of an applicable statute of limitations or from paying another filing fee in the event future legal proceedings become necessary."
Finally, although Merrill Lynch argues that there is a clear record of delay in this case, the cases it cites for that proposition are unpersuasive. In Mangiafico v.Street,
Similarly, Jones v. Merrill Lynch, Pierce, Fenner Smith, Inc.,
There is not a clear record indicating that Stephenson caused a delay or committed contumacious conduct, and the facts do not reflect extreme circumstances warranting the drastic sanction of dismissal with prejudice. Therefore, we hold that trial court's dismissal for failure to prosecute was an abuse of its discretion. We reverse the judgment of the trial court and remand this case for further proceedings consistent with this opinion.
REVERSED AND REMANDED.
PITTMAN and BRYAN, JJ., concur.
THOMPSON and MURDOCK, JJ., concur in the result, without writing.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.