Robert Cromwell, et al. v. William Tacon, as Administrator of Caribbean Commercial Investment Bank Ltd.
Securities Privacy JusticiabilityDoctri
Whether a district court may dismiss a plaintiff's case without prejudice under Rule 41 when the defendant has a time-bar defense and a without-prejudice dismissal would permit refiling in another forum with a longer limitations period
Under Federal Rule of Civil Procedure 41, a plaintiff may withdraw a case voluntarily until the defendant answers or moves for summary judgment. Thereafter, the plaintiff may only dismiss its case with the defendant’s consent or leave of the district court, which may dismiss the case with or wit hout prejudice. In that context, this Court instructed in Cone v. W. Virginia Pulp & Paper Co. , a district court must dismiss a case with prejudice if a without prejudice dismissal would cause the defendant “plain legal prejudice .” 330 U.S. 212, 217 (1947) . The question presented, which has divided the courts of appeals, is whether and (if so) under what circumstances a district court may dismiss a plaintiff’s case with out prejudice under Rule 41, if the defendant has a time -bar defense in the forum where the case is pending , and that without -prejudice dismissal would permit refiling in another forum where a longer limitations period potentially applies .