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23. For which party is the court likely to enter judgment?
Each party conducted discovery and the case proceeded to trial. Neither the seller nor the seller's attorney appeared at trial. The zookeeper introduced evidence that supported his claim that the seller breached their contract and also submitted evidence supporting consequential damages in the amount of $200,000.
A zookeeper filed a breach of contract suit against a seller in federal court in State A, seeking $80,000 in damages. The seller answered the zookeeper's complaint denying any liability. The seller also raised claim preclusion as an affirmative defense in her answer because the zookeeper had filed a previous complaint against the seller arising out of the same occurrence, which was dismissed, without prejudice, by the local state court.
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FRCP 41(b) establishes that an involuntary dismissal generally will bar a subsequent suit, but both the Rule and court decisions create exceptions where claim preclusion does not apply.
FRCP 41(b) provides three grounds for ordering an involuntary dismissal:
(i) failure of the plaintiff to prosecute;
(ii) failure of the plaintiff to comply with the FRCP or any order of court; AND/OR
(iii) failure of the plaintiff to show by the close of his evidence a right to relief based upon the facts and the law.
FRCP 41(b) further specifies that all 41(b) dismissals and «any dismissal not provided for in this rule» are to operate as adjudications on the merits except for four types of dismissals. The four exceptions are:
(i) dismissal for lack of jurisdiction;
(ii) dismissal for improper venue;
(iii) dismissal for failure to join a party under Rule 19; AND
(iv) dismissal that the court in its order specifies to be without prejudice.
Once a final judgment on the merits has been rendered on a particular cause of action, the claimant is barred by claim preclusion (res judicata) from asserting the same cause of action in a later lawsuit. When the claimant wins the earlier lawsuit, the cause of action is said to have been «merged» into the judgment. When the defendant wins, the claimant is said to be «barred» by the earlier adverse judgment. Both terms simply mean that the claimant cannot sue again on the same cause.
Before merger or bar apply, it must be shown that:
(i) the earlier judgment is a valid, final judgment «on the merits»;
(ii) the cases are brought by the same claimant against the same defendant — it is not enough that the same litigants were also parties in the previous case (it must be the same configuration of parties); AND
(iii) the same cause of action or claim is involved in the later lawsuit.
B is correct. The court should enter judgment for the zookeeper in this case because the seller failed to rebut the zookeeper's evidence that supported a damages award of $200,000. Thus, a judgment for $200,000 is warranted.
A is incorrect. The seller answered the complaint. Under FRCP 55, the failure to show up for trial is not a default. Here, the seller answered and rebutted the zookeeper's complaint, so the seller did not default with respect to the $80,000 in damages. However, the seller did not show up to trial to rebut the evidence of the breach and $200,000 in consequential damages.
C is incorrect. A court may file an involuntary dismissal for several reasons, one of which is a party's failure to prosecute a claim. But here, nothing indicates that the zookeeper failed to prosecute his claim. Therefore, a court would likely not enter an involuntary dismissal on this basis.
D is incorrect. The zookeeper was not required to reply to the seller's answer. Pursuant to FRCP 8(b)(6), when a response is not required, the allegation is considered denied or avoided, not admitted.