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Summary: When a court dismisses a debt collection lawsuit with prejudice, that marks the end of the claim for both the defendant and the plaintiff. The plaintiff cannot bring the case back to the same court nor to a higher court. Conversely, a nonsuit without prejudice is a temporary dismissal by the plaintiff.
If you are involved in a debt collection lawsuit, you may have heard a lot of different legal terms thrown around. It can be stressful and extremely confusing, especially if you do not have a lawyer to represent you.
Although hiring a lawyer can prove helpful for your defense, it is not always an affordable solution for everyone. If you are representing yourself in a debt collection lawsuit, then you need to be aware of what could happen and the actual meaning of all the different legal terms connected to your case.
In this article, we will explain the difference between nonsuits and dismissals and break down each in detail. But first, let's discuss some basic court lingo.
If you are being sued for a debt that you owe, knowing all the legal jargon will make it easier for you to stay involved and make the best response possible. Here are some basic legal terms and meanings you should know when you are being sued:
This is just a starter package of legal terms that will help you navigate your debt collection lawsuit with confidence. Now, let's jump into the difference between a nonsuit and a dismissal.
A nonsuit is a judgment that occurs against the plaintiff when they don't show up to court or are unwilling to continue with the case. On the other hand, a dismissal is a court order that concludes a case either voluntarily (plaintiff wants to dismiss) or involuntarily (defendant files a motion to dismiss, and it is granted).
A case can be dismissed with or without prejudice, and here's the difference:
So, if a creditor or debt collector dismissed a lawsuit against you without prejudice, they may engage in further litigation against you someday. That being said, the statute of limitations still applies if a case is refiled. Federal Rules of Civil Procedure Rule 41 (a) governs voluntary dismissals in Federal court.
Rule 41 (a) allows the plaintiff to dismiss his lawsuit if the defendant (you) failed to file an Answer to a Motion for Summary Judgment. The plaintiff may dismiss a lawsuit without a court order based on Rules 23 (e), 23.1 (c), 23.2, and 66, and any applicable federal statutes if:
There are only two circumstances in which dismissal is permissible if the defendant has taken such action:
A voluntary dismissal means that if the case is brought to court again, a dismissal in this second case will end the case permanently. With a counterclaim by the defendant, the case can only be dismissed if the counterclaim survives.
For example, if you wish to file a small claims case, you could voluntarily dismiss your case with or without prejudice. If you were to dismiss it with prejudice, then you would not need to go back to court if you have won or been paid.
Although, if you decided you wanted to continue and move the case to a normal court versus small claims, then you could dismiss the small claims case without prejudice. Then, you could bring the case to the regular court.
Your case could be brought to small claims and back to a regular court repeatedly. It can literally go back and forth as long as it is considered to be without prejudice. This might be a good or a bad situation for you, depending on your case.
If a judge were to dismiss your case involuntarily, it means that it goes against the wishes of one party. It is only considered involuntary when the judge decides the case can't go forward because of a legal reason. It can be dismissed with or without prejudice, but typically, this is done without prejudice.
There are several reasons a case is dismissed, including:
A nonsuit is a judgment against a plaintiff by which the court dismisses a case because the plaintiff lacked adequate grounds or was unwilling to continue the suit. If the court dismisses the case, it is generally with prejudice, which ends the plaintiff's right to bring the suit at a later date. However, if the plaintiff files a voluntary notice of nonsuit, and it is granted without prejudice, the plaintiff retains the right to potentially bring the suit again at a future date. Nonsuits can be voluntary when filed by the plaintiff on involuntary when it is an action taken by the court.
Different states have laws governing nonsuits. For example, in Texas, Tex. R. Civ. P. 162 allows the plaintiff in a suit to take a nonsuit any time before all their evidence has been introduced. Generally, if granted, these orders are typically without prejudice. However, Tex. R. Civ. 96 states that a plaintiff is barred from taking a nonsuit if the defendant has filed a counterclaim.
In Texas, a motion for nonsuit is typically filed by a creditor to dismiss a lawsuit. When it is filed and granted “without prejudice,” the plaintiff is voluntarily surrendering their case but reserves the right to re-file at any point before the statute of limitations expires. The rules governing a notice of nonsuit may vary from state to state.
Let's take a look at an example.
Example: Kate lives in Texas and owes $4,000 on a store card. She has defaulted on her payments, and the company eventually charged off her account and sold it to a debt collection agency which immediately contacted her about it. After no responses from Kate, the debt collection company filed a lawsuit against her. When she received the Summons and Complaint, Kate used SoloSuit to promptly file an Answer. In her Answer, she correctly asserted that the company did not provide the correct information about the account. As the plaintiff could not provide the right information because the debt had changed hands, the court issued a notice of nonsuit with prejudice. Kate no longer has to worry about the debt or the company filing a future lawsuit against her.
There is a situation when there is an unconditional right to nonsuit. This only exists if the defendant has filed a counterclaim from the same transaction as the plaintiff's claim. Here, the party that filed the counterclaim must agree with the nonsuit.
When a plaintiff has the right to a nonsuit, it means that they can opt to drop the case at any time. Regardless of if both sides have spent a lot of effort, time, and even money on the litigation of the case. This can be frustrating for one party, especially if it has been multiple years of litigation.
Essentially, if a plaintiff doesn't like the way the trial is heading, they can declare a nonsuit. This will end the proceeding until the case is refiled.
There are three main situations where a nonsuit is considered “late”:
In the absence of a cause of action or affirmative defense established by the plaintiff's opening statement, a defendant may move for nonsuit. The timing of a motion for nonsuit is crucial, especially when one is attempting to get out of a lawsuit. If one of the defenses was valid or the creditor lacked enough evidence, the judge may decide to sign an order to dismiss the case with prejudice.
In an arbitration scenario, the defendant may elect to submit their motion immediately after the plaintiff's opening statement is complete. According to Code of Civil Procedure section 581 (a), the defendant may not move for judgment without waiving their right to offer evidence if the motion is not granted.
Nonsuit motions are made orally, but a party may consider submitting a written motion simultaneously with making the oral motion for nonsuit. It is common when there is a lot of complexity or detail involved. The motion must state the grounds with precise details and requisite particularity to give the plaintiff a chance to remedy the deficiencies.
To ensure the motion follows proper form and procedure, it is advisable to check with the applicable arbitration rules from the arbitration case and the arbitrator's case manager.
Although courts traditionally disfavor nonsuits, particularly after an opening statement, they can be appropriate with no evidence of causation or libel.
Usually, nonsuit judgments are affirmed when the complaint does not refer to the same facts as the complaint, and no amendment is made. In addition, if the plaintiff's theory does not provide a legal basis for liability, the defendant's judgment of nonsuit is entitled. A motion for nonsuit can be denied if the opposing party's motion to amend the pleadings is granted and their pleadings are confirmed.
If you are served a notice of nonsuit, it may come as a relief. Even if it is “without prejudice,” chances are good the plaintiff does not have enough supporting evidence to pursue a claim against you in court. If the notice of nonsuit is “with prejudice,” you can breathe a sigh of relief that the case is over and cannot be brought again.
If you have been sued for a debt, protect your standing in the case by promptly filing an Answer to the Summons and Complaint. SoloSuit can help you create and file your Answer in a few easy steps. If a nonsuit or dismissal are unlikely, you can use SoloSettle to settle your debt for less than you originally owed.
If you have been sued by a creditor and do not have an attorney involved, educating yourself about your rights and responsibilities helps protect your rights and your financial future. Find out how SoloSuit can help you reach a positive outcome for your case.
Explore our document calculator below to determine which SoloSuit resource is most applicable to your case and situation.
An Affidavit is a written statement made under oath and submitted as a court document.
An Affidavit alone doesn't require a response. However, Affidavits are usually served with another document like a Complaint and Summons. If you received a Complaint and Summons you must respond by filing an Answer.
After starting an Answer, most people offer to settle because they want to wrap up the case.
If you received a collections letter, that means you are in collections.
The next document people send is a Debt Validation Letter. This will require the collector to prove you owe the debt.
If you received a Complaint and Summons, that means you are being sued.
The next document people file is an Answer document. This will prevent you from losing automatically.
After starting an Answer, most people offer to settle because they want to wrap up the case.
If you received Interrogatories, that usually means you are in the second stage of a lawsuit: discovery. In discovery both parties can request information from each other.
People respond to the Interrogatories with a written response. The response needs to be submitted by the deadline which is usually around 30 days.
Many people settle the lawsuit at this stage.
A Memorandum is a court document that argues for or against a Motion. A Memorandum is usually filed with a Motion.
The next document people file is a Memorandum Opposed to the Motion. For example, if the person suing you filed a Motion to Dismiss and a Memorandum in Favor of the Motion to Dismiss, you could file a Memorandum Opposed to the Motion to Dismiss.
At any point in a lawsuit, many people choose to settle to get to a quicker resolution.
A Motion is a court document that asks a judge to do something. Common motions include a Motion to Dismiss or a Motion for Summary Judgment. A Motion for Summary Judgment asks the judge to declare the filer the winner immediately.
The next document people file is a Memorandum Opposed to the Motion.
At any point in a lawsuit, many people choose to settle to get to a quicker resolution.
If you received a Motion to Dismiss, then the person suing you is pretty much giving up and asking the judge to dismiss the lawsuit. Dismissing the lawsuit will remove it from court. A case can be dismissed with or without prejudice. If it's dismissed without prejudice, the person can sue you again for the same issue.
If the person suing you is filing for dismissal, that's almost always a good thing. It usually means you won. 🎉
An Order is a written statement made by a judge in a lawsuit. Orders are usually approving or denying a Motion. For example, an Order for Default Judgment may be filed granting a Motion for Default Judgment. Don’t confuse a Proposed Order with an Order. Debt collectors will frequently file a Proposed Order for Default Judgment; it is only a proposal, not an actual order.
Orders don't require a response.
At any point in a lawsuit, many people choose to settle to get to a quicker resolution.
If you received a Petition and Citation, then you are being sued. These documents are titled Complaint and Summons in most states.
The next document you need to file is an Answer to the Petition. This will prevent you from losing automatically.
After starting an Answer, most people offer to settle because they want to wrap up the case.
If you received a Request for Admissions, that usually means you are in the second stage of a lawsuit: discovery. In discovery, both parties can request information from each other.
The next document people file is a Response to the Request for Admissions. It usually needs to be filed within about 30 days. If you don't file a response, the court will usually consider the statements in the request to be true.
At any point in a lawsuit, many people choose to settle to get to a quicker resolution.
If the last document you received is a Writ of Garnishment, that means your wages are about to be garnished. You've already lost the lawsuit.
If you never filed an Answer, there still may be hope. The next documents people file in this situation are a Motion to Set Aside Judgment and an Answer. The Motion to Set Aside Judgment asks the judge to give you a second chance because you never responded to the lawsuit, and the Answer responds to the lawsuit.
Even at this stage people sometimes settle.
This calculator is for educational purposes only.
SoloSuit makes it easy to fight debt collectors.
You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt.
SoloSuit's Answer service is a step-by-step web-app that asks you all the necessary questions to complete your Answer. Upon completion, we'll have an attorney review your document and we'll file it for you.
"First time getting sued by a debt collector and I was searching all over YouTube and ran across SoloSuit, so I decided to buy their services with their attorney reviewed documentation which cost extra but it was well worth it! SoloSuit sent the documentation to the parties and to the court which saved me time from having to go to court and in a few weeks the case got dismissed!" – James
You can ask your questions on the SoloSuit forum and the community will help you out. Whether you need help now or are just looking for support, we're here for you.
Here's a list of guides for other states.
Being sued by a different debt collector? Were making guides on how to beat each one.
Is your credit card company suing you? Learn how you can beat each one.
Need more info on statutes of limitations? Read our 50-state guide.
