Federal National Mortgage Association v. United States of America

ORCP 21 A(3) provides for dismissal of a plaintiff's case when there is another action pending between the same parties for the same cause. Where the plaintiff is a defendant in another pending action, ORCP 21 A(3) does not authorize dismissal of the plaintiff’s claim unless it either was required to be asserted as a counterclaim or necessarily will be adjudicated in the other action.

Plaintiff, Federal National Mortgage Association, appealed a judgment of the trial court that dismissed their complaint pursuant to ORCP 21 A(3). Plaintiff assigned error to the trial court's (mis)application of ORCP 21 A(3). ORCP 21 A(3) provides for dismissal of a plaintiff's case when there is another action pending between the same parties for the same cause. Where the plaintiff is a defendant in another pending action, ORCP 21 A(3) does not authorize dismissal of the plaintiff’s claim unless it either was required to be asserted as a counterclaim or necessarily will be adjudicated in the other action. Plaintiff argued that a federal action brought under TILA was not "for the same cause" as a state foreclosure claim. The Court agreed with Plaintiff and found that the trial court had misapplied the statute and should not have dismissed the action. The Court's decision rested on the fact that in the federal TILA claim, Plaintiff was the defendant, but in the state foreclosure claim, they were the plaintiff. Vacated and remanded.