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All Jurisprudence based

0 tracked cards Remedial Law, Legal and Judicial Ethics, with Practical Exercises

Eastfield Co. sues Metro Plastics for breach of a supply contract. Metro Plastics answers with a counterclaim for damages arising from the same contract. Before Eastfield presents any evidence, Eastfield moves to dismiss the action under Rule 17, Sec. 2. (a) Identify the governing rule on dismissal upon motion by the plaintiff. (b) What is the effect of such dismissal on Metro Plastics' counterclaims pleaded in the answer? (c) If Metro Plastics' counterclaims are compulsory versus permissive, how does that distinction affect the result?

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The action is dismissed without prejudice; all counterclaims must be pleaded anew to be considered. The action is dismissed with prejudice; the counterclaims are extinguished. The action is dismissed without prejudice; Metro Plastics’ counterclaims may be pursued as independent actions, and compulsory counterclaims not pleaded in the dismissed action are deemed waived. The action is dismissed without prejudice; the court retains jurisdiction to adjudicate the counterclaims within the dismissed case.

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