This summary was computer-generated without any editorial revision. It is not official, has not been checked for accuracy, and is NOT citable.
Facts
The Plaintiff, a limited partnership, sought to pursue claims against the Defendants, who were members of the board of directors of a country club. The Plaintiff had agreed that dismissal of its claims would be acceptable if it could later raise a shareholder derivative suit in a separate action. However, the district court dismissed the case with prejudice, raising concerns about whether this dismissal was intentional or a typographical error.
Procedural History
- District Court, Lincoln County: The district court dismissed the Plaintiff's claims with prejudice. The Plaintiff contended that the dismissal should have been without prejudice to allow for a future shareholder derivative suit.
Parties' Submissions
- Appellant (Plaintiff): Argued that the district court erred in dismissing the claims with prejudice, as it had agreed to dismissal only on the condition that it could pursue a shareholder derivative suit in a separate action.
- Appellees (Defendants): [Not applicable or not found]
Legal Issues
- Did the district court err in dismissing the Plaintiff's claims with prejudice rather than without prejudice?
Disposition
- The Court of Appeals remanded the case to the district court for clarification regarding the basis for its dismissal with prejudice or for entry of an order dismissing the case without prejudice, if appropriate.
Reasons
Per Sutin J. (Castillo and Robles JJ. concurring):
The Court of Appeals noted that the district court's reasoning for dismissing the case with prejudice was unclear. The Plaintiff had agreed to dismissal only if it could later pursue a shareholder derivative suit, and it was uncertain whether the dismissal with prejudice was intentional or a typographical error. The Court of Appeals issued a second notice proposing remand, and no response was received. Consequently, the case was remanded to the district court for clarification or correction of the dismissal order. The district court was directed to issue a written order within sixty days, and the Plaintiff was instructed to file the order with the Court of Appeals and indicate whether it intended to proceed with the appeal.