Quote: I have been looking at various posts, and always had this question.
Lets say you win a motion to dismiss without prejudice. What then? In most cases the bank has already refused to accept payment from you, take your account of their website, and various other things.
But what happens if you win the dismissal? Does the bank have to reinstate your account? Can you make payments on your balance? Do they have to send a letter of acceleration to file again?
No, the bank does not have to reinstate your account.
Precisely what happens depends upon the nature and wording of the dismissal order.
If the dismissal was due to lack of standing, the dismissal will be without prejudice. The plaintiff waits a little while, cleans up its case, possibly reassigning the matter to a competent law firm experienced in litigation. Then the re-file and usually WIN in the second outing. If their case is a MESS, WHY would you want to litigate this matter after giving them an opportunity to FIX EVERYTHING?
The plaintiff would usually not have to send a new letter of acceleration, though some might elect to do so in an abundance of caution. If they accelerated before, then they can really only "undo" the acceleration by mutual assent with the borrower.
If their notices were previously defective, then they will try to get these right in a second suit.
Although a dismissal on a failure to show conditions precedent is usually a dismissal on the merits, courts in some places have expressly held that a new suit based upon a different notice (or making the failed or omitted notice) is a suit on a different claim not barred by res judicata.
Similarly, suppose that the borrower were to successfully prove, even at trial, that there had been no default as alleged. Absent some judgment on counterclaims, etc., the plaintiff might still be able to sue asserting another different and later default. If they fear assertion of res judicata, they may also negotiate the note to a new entity, serve new notices, assert a new default and file another suit.
Contrary to the assertions of swindlers and buffoons like Mike H., a dismissal does not either discharge or bar the debt! Neither does it extinguish the mortgage. Neither does the extinction of the named Lender, going out of business ever extinguish the lien. This is just nonsense he has invented as a talking point for his swindle. (Ask him to prove ANY case authority for his ridiculous propositions and he NEVER CAN. All he can do is SELL YOU his unlawful services as a pretend lawyer.)
Each and every case is different and the effects of an order of dismissal heavily depend both upon the claims and defenses adjudicated and the wording of the order.
Once again, those telling you that you need to get the matter dismissed right away or as quickly as possible are simply armchair quarterbacks with no real experience and no meaningful strategic understanding.