Commercial Space Management Co. v. Boeing Co.

This appeal involves the “two dismissal rule” of Fed.R.Civ.Proc. 41(a) 1 and re *1076 quires us to decide whether the district court that had jurisdiction over the second action which was voluntarily dismissed may determine, at the defendant’s request, if the plaintiffs notice dismissing the second action is with or without prejudice.

Under Rule 41(a)(1), an action may voluntarily be dismissed by the plaintiff without court order by filing a notice of dismissal before the defendant has answered or moved for summary judgment, or by filing a stipulation of dismissal signed by all parties who have appeared. Such a voluntary dismissal is presumed to be “without prejudice” unless it states otherwise, but a voluntary dismissal of a second action operates as a dismissal on the merits if the plaintiff has previously dismissed an action involving the same claims. This is known as the “two dismissal rule.”

Here, the plaintiff, Commercial Space Management Company, Inc. (CSMC), filed a stipulation of dismissal in the first action, then brought another action based on the same claims, then filed a notice of dismissal in the second action. The notice states that it is a “voluntary dismissal…