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Rule 2-506 – Voluntary Dismissal

May 13, 2021 | Civil Prodcedure, Maryland

(a) By Notice of Dismissal or Stipulation. Except as otherwise provided in these rules or by statute, a party who has filed a complaint, counterclaim, cross-claim, or third-party claim may dismiss all or part of the claim without leave of court by filing (1) a notice of dismissal at any time before the adverse party files an answer or (2) a stipulation of dismissal signed by all parties to the claim being dismissed.
(b) Dismissal Upon Stipulated Terms. If an action is settled upon written stipulated terms and dismissed, the action may be reopened at any time upon request of any party to the settlement to enforce the stipulated terms through the entry of judgment or other appropriate relief.
(c) By Order of Court. Except as provided in section (a) of this Rule, a party who has filed a complaint, counterclaim, cross-claim, or third-party claim may dismiss the claim only by order of court and upon such terms and conditions as the court deems proper. If a counterclaim has been filed before the filing of a plaintiff’s motion for voluntary dismissal, the action shall not be dismissed over the objection of the party who filed the counterclaim unless the counterclaim can remain pending for independent adjudication by the court. If a third-party claim has been filed before the filing of a plaintiff’s motion for voluntary dismissal, the court, in its discretion, may dismiss the action over the objection of the party who filed the third-party claim, but the court may not dismiss a third-party claim that is non-derivative and, if refiled, would be barred by an applicable statute of limitations.
(d) Effect. Unless otherwise specified in the notice of dismissal, stipulation, or order of court, a dismissal is without prejudice, except that a notice of dismissal operates as an adjudication upon the merits when filed by a party who has previously dismissed in any court of any state or in any court of the United States an action based on or including the same claim.
(e) Costs. Unless otherwise provided by stipulation or order of court, the dismissing party is responsible for all costs of the action or the part dismissed.

Md. R. Civ. P. Cir. Ct. 2-506

This Rule is derived as follows:

Section (a) is derived in part from the 1968 version of Fed. R. Civ. P. 41(a)(1) and is in part new.

Section (b) is new.

Section (c) is derived in part from former Rule 541 b and the 1968 version of Fed. R. Civ. P 41(a)(2) and is in part new.

Section (d) is derived from former Rule 541 c.

Section (e) is derived from former Rules 541 d and 582 b.

Adopted April 6, 1984, eff. July 1, 1984. Amended Nov. 12, 2003, eff. Jan. 1, 2004; Nov. 8, 2005, eff. Jan. 1, 2006; Nov. 21, 2013, eff. Jan. 1, 2014; March 2, 2015, eff. July 1, 2015; May 15, 2019, eff. July 1, 2019.

HISTORICAL NOTES

2003 Orders

The November 12, 2003, order amended the source note.

2005 Orders

The November 8, 2005, order rewrote sections (a) and (b); amended the cross reference following section (d); deleted former section (e); and amended the source note. Prior to amendment, sections (a), (b), and (e) read:

“(a) By Notice of Dismissal or Stipulation. Except as otherwise provided in these rules or by statute, a plaintiff may dismiss an action without leave of court (1) by filing a notice of dismissal at any time before the adverse party files an answer or a motion for summary judgment or (2) by filing a stipulation of dismissal signed by all parties who have appeared in the action.

“(b) By Order of Court. Except as provided in section (a) of this Rule, a plaintiff may dismiss an action only by order of court and upon such terms and conditions as the court deems proper. If a counterclaim has been pleaded prior to the filing of plaintiff’s motion for voluntary dismissal, the action shall not be dismissed over the objection of the party who pleaded the counterclaim unless the counterclaim can remain pending for independent adjudication by the court.

“(e) Dismissal of Counterclaims, Cross-Claims, or Third-Party Claims. The provisions of this Rule apply to the dismissal of any counterclaim, cross-claim, or third-party claim, except that a notice of dismissal filed by a claimant pursuant to section (a) of this Rule shall be filed before the filing of an answer.

2013 Orders

The November 21, 2013, order, added a new section (b) pertaining to a dismissal upon stipulated terms.

2015 Orders

The March 2, 2015 order deleted the words “by filing in (a)(2).

2019 Orders

The May 15, 2019 order amended the rule to provide that a trial court has discretionary authority to dismiss an action over the objection of a third-party claimant unless the third-party claim is non-derivative and, if refiled, would be barred by an applicable statute of limitations.

See Code, Courts Article, § 7-202. For settlement of suits on behalf of minors, see Code, Courts Article, § 6-405 and Rule 2-202. For settlement of a claim not in suit asserted by a parent or person in loco parentis under a liability insurance policy, see Code, Insurance Article, § 19-113.