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The second section of the rule contemplates a situation where a counterclaim has been pleaded by the

defendant before the service on him or her of the plaintiff’s motion to dismiss. It requires leave of
court, and the dismissal is generally without prejudice unless otherwise declared by the court.

The third section contemplates dismissals due to the fault of the plaintiff such as the failure to
prosecute. The case is dismissed either upon motion of the defendant or by the court motu propio.
Generally, the dismissal is with prejudice unless otherwise declared by the court.

In all instances, Rule 17 governs dismissals at the instance of the plaintiff, not of the defendant.
Dismissals upon the instance of the defendant are generally governed by Rule 16, which covers
motions to dismiss.63

In Insular Veneer, Inc. v. Hon. Plan,64 Consolidated Logging and Lumber Mills filed a complaint
against Insular Veneer to recover some logs the former had delivered to the latter. It also filed ex partea
motion for issuance of a restraining order.

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