Cannon v. Holmes

Twelve years ago, Plaintiff filed a lawsuit against Defendants. The district court eventually dismissed the case for failure to prosecute but did not indicate whether the case was dismissed without prejudice or pursuant to Utah R. Civ. P. 41(b). Thereafter, Plaintiff filed a new action asserting the same claims against the same defendants. Defendants filed a motion to dismiss, arguing that the dismissal operated as a dismissal with prejudice under Rule 41(b). The district court denied the motion to dismiss, finding that the decision in Panos v. Smith’s Food & Drug Centers, Inc. was controlling. In Panos, the court of appeals held that when a judge dismisses a case for failure to prosecute but fails to explicitly provide that the case is dismissed with prejudice or pursuant to Rule 41(b), the presumption is that the case is dismissed without prejudice. The Supreme Court overruled Panos and held (1) the plain text of Rule 41(b) is clear that the presumption of prejudice applies broadly in most cases; (2) in this case, in the absence of a showing that he relied on Panos, Plaintiff was not entitled to a prospective-application of the ruling; and (3) this case should have been dismissed with prejudice. View "Cannon v. Holmes" on Justia Law