Warehime v. Louisville Retirement Residence Limited Liability Company
3:16-cv-00634
W.D. Ky.May 26, 2017Background
- Plaintiff Gerald Warehime, a resident of Oxmoor Lodge, alleged an employee assaulted him and sued defendants Louisville Retirement Residence LLC (Oxmoor Lodge) and Harvest Management Sub LLC (Holiday Retirement).
- Case was removed from Jefferson Circuit Court to the Western District of Kentucky on diversity grounds (amount in controversy > $75,000).
- Warehime sought voluntary dismissal without prejudice under Fed. R. Civ. P. 41(a)(2); defendants opposed and later moved to compel arbitration.
- The case was at an early stage: recently removed, little docket activity, no completed discovery, no summary judgment motions, and no Rule 16 scheduling order.
- The district court evaluated Rule 41(a)(2) factors (defendant prejudice, delay, plaintiff diligence, explanation for dismissal, pending summary judgment) and found dismissal appropriate.
- Court granted dismissal without prejudice and denied the motion to compel arbitration as moot.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the court should permit voluntary dismissal without prejudice under Fed. R. Civ. P. 41(a)(2) | Warehime moved to dismiss claims without prejudice (intending to refile if needed) | Defendants argued they would suffer plain legal prejudice from expense, delay, and tactical refiling | Court granted dismissal without prejudice; found no plain legal prejudice given early posture of case |
| Whether the court should compel arbitration | Implicitly opposed or rendered moot by dismissal | Defendants sought to compel arbitration based on agreement | Motion to compel arbitration denied as moot (because claims dismissed) |
Key Cases Cited
- Grover v. Eli Lilly & Co., 33 F.3d 716 (6th Cir. 1994) (abuse-of-discretion standard and factors for Rule 41(a)(2) dismissal)
- Cone v. West Virginia Pulp & Paper Co., 330 U.S. 212 (U.S. 1947) (prejudice standard in dismissal context)
- Banque de Depots v. National Bank of Detroit, 491 F.2d 753 (6th Cir. 1974) (district court discretion on dismissal)
- Kovalic v. DEC Int’l, Inc., 855 F.2d 471 (7th Cir. 1988) (prejudice vs. risk of a second lawsuit)
- Brown v. Baeke, 413 F.3d 1121 (10th Cir. 2005) (dismissal without prejudice not barred solely because plaintiff may refile)
- American National Bank & Trust Co. of Sapulpa v. Bic Corp., 931 F.2d 1411 (10th Cir. 1991) (dismissing without prejudice permissible even where plaintiff intends to recommence in state court)