Federal National Mortgage Association v. Marjorie Johnston and Kamberleigh Johnston
Federal National Mortgage Association v. Marjorie Johnston and Kamberleigh Johnston
Opinion
¶ 1. Defendants Marjorie Johnston and Kamberleigh Johnston appeal the voluntary dismissal without prejudice filed by plaintiff bank Federal National Mortgage Association in this eviction action. On appeal, defendants argue that because a prior eviction action filed by bank had been dismissed, this case should have been dismissed with prejudice. Defendants also contend that the court erred in denying their motion to reconsider without a hearing and not dismissing the case on mootness grounds. We conclude that the effect of the voluntary dismissal is not ripe until a third action is filed and affirm.
¶ 2. Court records indicate that in June 2016 bank filed an eviction action against defendant Marjorie Johnston for property located at 49 Pine Street in Rutland. Fed. Nat'l Mortg. v. Johnston , No. 302-6-16 Rdcv (Vt. Super. Ct.). Following entry of a default judgment, the court found that service had not been properly completed and bank conceded to vacating the default judgment. Because the time for service had run, the court dismissed the case without prejudice in November 2016. In March 2017, bank filed this eviction action against defendants for property located at 49 Pine Street, unit 2, in Rutland. The complaint alleged that bank had purchased the property in a foreclosure sale and that defendants were the former mortgagors and current occupants of the property. In June 2017, bank filed a notice of voluntary dismissal, seeking to dismiss the case without prejudice. At that time, defendants had not filed an answer or otherwise appeared in the case. The dismissal was entered on June 23, 2017. On July 10, 2017, defendant Marjorie Johnston filed a notice of appearance in the case and a motion to reconsider, arguing that the case should have been dismissed with prejudice due to the dismissal of the prior eviction action. Defendant also asserted that instead of allowing a voluntary dismissal, the court should dismiss the case with prejudice on mootness grounds because bank had sold the property prior to seeking a voluntary dismissal. The trial court denied the motion without a hearing. The court explained that bank was entitled to dismiss the action without prejudice because defendants had not yet filed an answer. The court concluded that the dismissal was without prejudice because the prior action had been dismissed by court order rather than by bank's voluntary dismissal. Defendants appeal.
¶ 3. Under Vermont Rule of Civil Procedure 41(a), a plaintiff can dismiss a case "without order of court" by filing a notice of dismissal if it is before the adverse party files an answer. A voluntary dismissal is usually without prejudice, "except that a notice of dismissal operates as an adjudication upon the merits when filed by a plaintiff who has once dismissed in any court." V.R.C.P. 41(a)(1). This is known as the two-dismissal rule.
¶ 4. Defendants contend that the two-dismissal rule applies here and therefore dismissal should have been entered "with prejudice." 1 Defendants further assert that the court erred in denying their motion to reconsider without a hearing and in denying their request to dismiss the case with prejudice on mootness grounds. We conclude that defendants' argument concerning the two-dismissal rule was not properly before the trial court and will become ripe only when and if a third action is filed. Therefore, we do not reach the merits of the claim or defendants' argument concerning mootness.
¶ 5. We begin with the dismissal rule. "The interpretation of procedural rules is a question of law which we review de novo."
State v. Amidon
,
¶ 6. Because the dismissal is effective upon filing and without court order, the question is whether the court retains authority after the dismissal to decide whether the two-dismissal rule applies. In a different context, this Court addressed the question of whether it was appropriate for a court dismissing a case to explain the preclusive effect of the dismissal. We held that "[i]n general, a court should not dictate preclusion consequences at the time of deciding a first action" because it is "the duty of the second trial court-which knows both what the earlier finding was and how it relates to a later case-to independently determine what preclusive effect a prior judgment may be given."
Cenlar FSB v. Malenfant
,
¶ 7. Federal interpretations of analogous Federal Rule of Civil Procedure 41 agree with this approach. See
Amidon
,
¶ 8. Defendants claim that the trial court erred in denying their motion to reconsider and in adjudicating it without a hearing. The trial court has discretion to decide a motion to reconsider and may dispose of such a motion without a hearing. See
Rubin v. Sterling Enters., Inc.
,
¶ 9. Defendants' final argument is that the case should have been dismissed as moot because bank no longer owned the property when it filed the dismissal. Because the voluntary dismissal had already been entered, the court was without authority to consider defendants' subsequent request to dismiss the matter on other grounds. See
Am. Soccer Co. v. Score First Enters.
,
Affirmed .
Defendants did not appeal immediately from the court's dismissal order; instead defendant Marjorie Johnston filed a motion to reconsider and vacate that order citing Vermont Rules of Civil Procedure 59 and 60. Because the motion was timely filed, it tolled the appeal period and there is no merit to bank's assertion that defendants' appeal was untimely filed. See V.R.A.P. 4(b) (listing motions, which if timely filed, toll appeal period).
Because we hold the issue of the two-dismissal rule was not yet ripe, we do not reach the question of whether the November 2016 dismissal counted as a dismissal by plaintiff for purposes of Rule 41(a)(1).
Although some courts do not directly address the question of when the issue becomes ripe, the facts of the cases indicate that the application of the two-dismissal rule is assessed in the third action. See
ASX Inv. Corp. v. Newton
,
Reference
- Full Case Name
- FEDERAL NATIONAL MORTGAGE ASSOCIATION v. Marjorie JOHNSTON and Kamberleigh Johnston
- Cited By
- 4 cases
- Status
- Published