Cannon v. Holmes, 387 P.3d 971

Chris Cannon filed suit alleging torts and contract claims arising from an investment; the case sat dormant for years.
The district court issued a show-cause order for failure to prosecute; no counsel appeared and the court entered a terse dismissal order that did not state whether dismissal was with or without prejudice or cite a rule.
Cannon filed a new action alleging the same claims; defendants moved to dismiss under rule 12(b)(6), arguing the earlier dismissal operated as an adjudication on the merits under Utah R. Civ. P. 41(b).
Cannon relied on Panos v. Smith’s Food & Drug Centers, Inc., arguing a silent failure-to-prosecute dismissal is presumed without prejudice under Utah Code of Judicial Administration rule 4-103(2).
The district court denied the motion to dismiss following Panos; defendants appealed interlocutorily to the Utah Supreme Court.
The Supreme Court reviewed whether Panos correctly interpreted Rule 41(b) and whether its overruling should be applied prospectively.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Effect of a silent involuntary dismissal (with/without prejudice)	Cannon: Panos and rule 4-103(2) control; silence implies without prejudice	Defendants: Utah R. Civ. P. 41(b) presumes dismissal with prejudice unless the order "otherwise specifies" or an exception applies	Court: Overrules Panos; Rule 41(b)’s plain text controls—silent involuntary dismissals are presumptively with prejudice unless judge specifies otherwise or an enumerated exception applies
Retroactivity / prospective relief	Cannon: (sought) prospective application based on reliance on Panos	Defendants: apply new rule retroactively to bar refiling	Court: Declines prospective-only application—Cannon did not show justified reliance on Panos, so ruling applies normally (retroactively)

Panos v. Smith’s Food & Drug Centers, Inc., 913 P.2d 363 (Utah Ct. App. 1996) (court of appeals held silence meant dismissal without prejudice under rule 4-103(2))
Fundamentalist Church of Jesus Christ of Latter-Day Saints v. Horne, 289 P.3d 502 (Utah 2012) (interpreting "adjudication on the merits" as dismissal with prejudice)
Alvarez v. Galetka, 933 P.2d 987 (Utah 1997) (general rule that involuntary dismissals without specification are with prejudice)
Donahue v. Smith, 27 P.3d 552 (Utah 2001) (noting trial court could expressly dismiss without prejudice under Rule 41(b))
Meadow Fresh Farms, Inc. v. Utah State Univ. Dep’t of Agric. & Applied Sci., 813 P.2d 1216 (Utah Ct. App. 1991) (discussing calendar management rule codifying inherent dismissal power)
Wilson v. Lambert, 613 P.2d 765 (Utah 1980) (recognizing court’s inherent power to dismiss sua sponte)
Link v. Wabash R.R. Co., 370 U.S. 626 (1962) (federal recognition of trial court power to dismiss for failure to prosecute)