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Stellia Ltd. v. Yknot Global Ltd., 2016 UT App 133 (June 23 2016)

Jun 23, 2016

This case serves as a warning and reminder to litigants about the effect of the two dismissal rule under Utah R. Civ. P. 41(a). Yknot voluntarily dismissed claims that it filed against Stellia twice – once in federal district court and the second time in state court. Stellia then sued Yknot in a new state court action, and Yknot attempted to assert as counterclaims the claims it had previously dismissed. The Court of Appeals affirmed dismissal of the counterclaims based on Rule 41(a), which provides that “a notice of dismissal operates as an adjudication upon the merits when filed by a plaintiff who has once dismissed in any court . . . an action based on or including the same claim.”