Farmers Ins. Exch. v. Dietz

87 P.3d 769
CourtCourt of Appeals of Washington
DecidedApril 5, 2004
Docket51655-8-I
StatusPublished
Cited by10 cases

This text of 87 P.3d 769 (Farmers Ins. Exch. v. Dietz) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Farmers Ins. Exch. v. Dietz, 87 P.3d 769 (Wash. Ct. App. 2004).

Opinion

87 P.3d 769 (2004)

FARMERS INSURANCE EXCHANGE, Respondent,
v.
Robert DIETZ and Jane Doe Dietz, husband and wife, and the marital community composed thereof; and Christy A. Klein and John Doe Klein, wife and husband, and the marital community composed thereof, Appellants.

No. 51655-8-I.

Court of Appeals of Washington, Division 1.

April 5, 2004.

*770 Jill Diane Bowman, Molly Margaret Daily, Stoel Rives LLP, Seattle, WA, for Respondent.

Karen Kathryn Koehler, Lepley & Koehler PLLC, Bellevue, WA, for Appellants.

COX, A.C.J.

Robert Dietz and Christy A. Klein appeal the trial court's order denying reconsideration of its grant of the motion for voluntary dismissal of the complaint of Farmers Insurance Exchange and the counterclaim of Dietz and Klein pursuant to Civil Rule 41(a)(1)(B). Because the counterclaim of Dietz and Klein had not been "pleaded"—served and filed— prior to the service of Farmers' motion for dismissal and there is no showing of prejudice, the trial court correctly dismissed the counterclaim. Accordingly, we affirm.

Dietz and Klein are former employees of Farmers. The Washington State Trial Lawyer's Association asked them to speak at a WSTLA Continuing Education Seminar entitled, "The Rise of Colossus." "Colossus" is a computer program insurers use to place a value on general damage claims of insureds.

Farmers commenced this action seeking to enjoin Dietz and Klein from speaking at the seminar. Among other things, Farmers alleged they would disclose confidential and proprietary information at the seminar.

The parties agreed to an expedited discovery schedule. Farmers deposed Dietz and Klein on November 5, 2002.

The following morning, November 6, Farmers decided not to pursue its claims. During a telephone conversation between counsel that morning, Farmers sought a stipulated dismissal from Dietz and Klein. Dietz and Klein responded that they had sent out for service and filing an answer and counterclaim on the previous day. Thus, they would not agree to a stipulated dismissal. When Farmers stated that no answer and counterclaim had been served, Dietz and Klein offered to send a copy by facsimile. Farmers declined that offer.

The record establishes the following undisputed sequence of events on November 6, the day of the telephone conversation. Dietz and Klein filed their answer and counterclaim in the superior court at 9:40 a.m. At 10:09 a.m., after the telephone conversation between counsel, Farmers filed its CR 41(a)(1)(B) motion for voluntary dismissal. At 11:00 a.m., Farmers served its motion on Dietz and Klein. At 12:10 p.m., Dietz and Klein served Farmers with their answer and counterclaim.

The trial court granted Farmers' motion to dismiss and also dismissed the counterclaim of Dietz and Klein. But the court also granted them 10 days to submit written authority to support a motion for reconsideration. Following the parties' submissions of additional materials, the court denied the motion for reconsideration. It also entered its findings of fact and conclusion of law.

Dietz and Klein appeal the latter order.

"PLEADED" COUNTERCLAIM

Dietz and Klein argue that the language of CR 41(a)(3) supports their argument that filing of their counterclaim in superior court prior to Farmers' service of its motion for voluntary dismissal precludes dismissal of their counterclaim. Specifically, Dietz and Klein argue that the 9:40 a.m. filing of their *771 counterclaim is sufficient to satisfy the word "pleaded" in CR 41(a)(3). We disagree.

Where a state procedural rule parallels a federal rule, we may look to the analysis of the federal rule for guidance where an issue has not been squarely addressed by the state.[1] But we are not bound by such analysis if it is unpersuasive.[2] We interpret court rules as if they were statutes.[3] We construe the civil rules "to secure the just, speedy, and inexpensive determination of every action."[4] We review a decision granting a motion for voluntary dismissal under CR 41(a) for abuse of discretion.[5] The application of a court rule to undisputed facts is a matter of law that we review de novo.

Washington courts have not squarely addressed the meaning of "pleaded" in CR 41(a)(3). CR 41(a) states, in relevant part:

(a) Voluntary Dismissal.
(1) Mandatory. Subject to the provisions of rules 23(e) and 23.1, any action shall be dismissed by the court:
. . .
(B) By Plaintiff Before Resting. Upon motion of the plaintiff at any time before plaintiff rests at the conclusion of his opening case.
. . .
(3) Counterclaim. If a counterclaim has been pleaded by a defendant prior to the service upon him of plaintiff's motion for dismissal, the action shall not be dismissed against the defendant's objection unless the counterclaim can remain pending for independent adjudication by the court.[[6]]

Under CR 41(a)(1)(B), Farmers had a right to dismissal of its complaint because it moved to dismiss prior to the conclusion of its opening case. The dispute here is whether the court should also have dismissed the counterclaim of Dietz and Klein. As their counsel properly conceded at oral argument, their counterclaim "can remain pending for independent adjudication by the court," as the rule specifies. The issue is whether their counterclaim was "pleaded" by solely filing the counterclaim prior to service of Farmers' motion to dismiss.

While there are no Washington cases on point, at least two federal courts have dealt with this issue when construing identical language in the parallel federal rule, FRCP 41(a)(2).[7] Those cases both hold that service of a counterclaim is a critical event for purposes of determining whether dismissal under the rule is appropriate. Neither holds that filing of the counterclaim alone is sufficient.

The Court of Appeals for the Third Circuit in United States v. Professional Air Traffic Controllers Organization (PATCO),[8] a per curiam opinion, held that the trial court properly granted a plaintiff's motion for voluntary dismissal. There, the government moved to dismiss its suit as moot prior to the filing of any counterclaim by the defendants.[9] After service of the motion, defendants filed and *772 served a counterclaim. The district court granted the motion, and the appeals court affirmed, stating "Since the government's motion to dismiss was served prior to the service of defendants' counterclaim, the district court acted within the discretion granted to it by Rule 41(a)."[10]

The United States Claims Court adopted this reasoning in Chinook Research Labs., Inc. v. United States.[11] In that case, plaintiff Chinook served its motion for voluntary dismissal on the government on February 12, 1991.[12] Sometime on that same day, the government's counsel told Chinook's counsel that the government intended to file a counterclaim.[13] However, the government did not file its motion to file an amended answer and counterclaim until February 14, two days later. On these facts, the court stated "It has been held that the phrase `if a counterclaim has been pleaded' means if a pleading containing a counterclaim has been served on plaintiff."[14] The Chinook

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Cite This Page — Counsel Stack

Bluebook (online)
87 P.3d 769, Counsel Stack Legal Research, https://law.counselstack.com/opinion/farmers-ins-exch-v-dietz-washctapp-2004.