Pearl Carter moved to voluntarily dismiss the complaint that she had filed against Michael Morelli, Jeffrey *826Henderson, and the City of Alton. Her motion did not explicitly say that she sought dismissal without prejudice, but it did state that "neither party will be prejudiced by the granting of this Motion." The defendants responded, arguing that the district court should grant Carter's motion-but that it should do so with prejudice. Carter's only reply was to amend her motion to specify that she sought dismissal without prejudice.
The district court dismissed Carter's complaint with prejudice. Carter filed a motion for reconsideration,
Because the defendants had already filed an answer to Carter's complaint, she could only voluntarily dismiss her action if all the parties signed a stipulation of dismissal or if she secured a court order. See FED. R. CIV. P. 41(a). Carter acknowledges that she did not file a signed stipulation, so the district court properly construed Carter's motion as one seeking its approval to dismiss her case. Under Rule 41(a)(2), the court had discretion to dismiss the case either with or without prejudice. The court determined that a dismissal with prejudice was proper, and it was within its discretion to do so.
But before the court entered the dismissal order, it should have given Carter an opportunity to withdraw her voluntary dismissal motion. Babcock v. McDaniel ,
We thus VACATE the district court's judgment dismissing Carter's action with prejudice, VACATE the order of costs, and REMAND the case to the district court for proceedings consistent with this opinion.
Carter did not make clear whether she brought her motion for reconsideration under Rule 59(e) or Rule 60(b) of the Federal Rules of Civil Procedure. The district court was correct to construe it as a Rule 59(e) motion, because we have said that the important question for categorizing these motions is their timing. See Lac Du Flambeau Band of Lake Superior Chippewa Indians v. State of Wis. ,
