465 S.W.3d 124
Tenn. Ct. App.2014Background
- Ewans filed a circuit court personal injury action against the original defendants and Hartford Insurance in 2006-2009 seeking damages.
- Defendants moved for sanctions (Rule 11) and for summary judgment arguing release/settlement bars the claims.
- Ewans amended complaint in 2009 adding fraud-based claims for non-disclosure of a business policy.
- Trial court denied sanctions in 2011; on remand (2012) summary judgment was denied and later stayed due to federal declaratory judgment actions.
- In 2013, Ewans filed a written notice of voluntary nonsuit; Defendants filed renewed MSJ and sought sanctions after the notice.
- Trial court ultimately granted a written order of voluntary dismissal without prejudice on November 14, 2013; Martin appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether post-notice MSJ prevents voluntary nonsuit | Ewans contend Rule 41.01(1) rights remain until order; Rickets controls. | Martin argues MSJ filed before nonsuit order bars nonsuit under 41.01(3). | Nonsuit rights remain; MSJ filed after notice but before order does not bar voluntary nonsuit. |
| Sanctions under Rule 11 | If sanctions are warranted, Ewans’ counsel acted with reasonable cause. | Sanctions warranted for frivolous filings and conduct. | Rule 11 sanctions denied due to safe harbor compliance failure by Defendants; no sanctions awarded. |
| Frivolous appeal and attorney’s fees | Defendants’ appeal lacks merit; fees should be awarded. | Appeal was reasonable; sanctions inappropriate. | No attorney’s fees awarded for a frivolous appeal. |
Key Cases Cited
- Lacy v. Cox, 152 S.W.3d 480 (Tenn. 2004) (Rule 41.01(3) ministerial; right to nonsuit largely unaffected by court action)
- Rickets v. Sexton, 533 S.W.2d 293 (Tenn. 1976) (plaintiff's right to take a nonsuit is not dependent on trial court approval)
- Evans v. Perkey, 647 S.W.2d 636 (Tenn.Ct.App. 1982) (timing of appeal depends on order on nonsuit, not merely notice)
- Green v. Moore, 101 S.W.3d 415 (Tenn. 2003) (an order on a nonsuit is required to determine appeal period)
- Cooter & Gell v. Hartmarx Corp., 496 U.S. 384 (U.S. 1990) (federal Rule 11 sanctions interact with 'safe harbor' provisions)