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Phipps v. Winneshiek County4/28/1999
Judgments § 309, at 432-33 (1997). Instead, intrinsic fraud inheres in the issues submitted to the court. Stearns, 187 N.W.2d at 735. A claim of false testimony constitutes intrinsic fraud. Id.; see also Mauer v. Rohde, 257 N.W.2d 489, 496 (Iowa 1977).
We consider a dismissal filed by a party in a case in conjunction with a settlement agreement to be a final adjudication on the merits. See Bloom v. Steeve, 165 N.W.2d 825, 826-27 (Iowa 1969); Mensing v. Sturgeon, 250 Iowa 918, 925, 97 N.W.2d 145, 148 (1959); Iowa R. Civ. P. 215, 217. Moreover, under our rules of procedure "every final adjudication of any of the rights of the parties in an action is a judgment." Iowa R. Civ. P. 219. Nevertheless, this does not mean all voluntary dismissals are judgments.
A dismissal filed as part of a settlement agreement is considered a final adjudication to prevent multiple litigation over the same claims or issues. See Bloom, 165 N.W.2d at 827. Thus, for the purpose of applying the principles of res judicata, a voluntary dismissal can constitute a final adjudication of the claims and issues of a dismissed lawsuit. Id. On the other hand, voluntary dismissals are otherwise not considered to be an adjudication on the merits. See Iowa R. Civ. P. 217.
The County seeks to apply a rule in this case which relates to vacating judgments. The Phipps do not seek to vacate a judgment. Moreover, the rationale for considering a voluntary dismissal to be a judgment for purposes of applying the principles of res judicata is not present in this situation. A rule which limits the collateral attack on a judgment by distinguishing between extrinsic and intrinsic fraud exists to protect the integrity of the adjudication process. See 47 Am. Jur. 2d Judgments § 929, at 396 (1995). The collateral attack on a judgment procured by intrinsic fraud is not permitted because the parties had an opportunity at trial to expose the fraud to the trier of fact. Id. Any intrinsic fraud thus inheres in the issues submitted to and decided by the court. Stearns, 187 N.W.2d at 735. The voluntary dismissal in this case did not involve an adjudication of the case by the court or a jury and the rationale for protecting the integrity of the judgment does not exist.
We conclude a voluntary dismissal is a final adjudication only for the purposes of res judicata principles. It is not a judgment for the purpose of the principles of collateral attack on a judgment. Accordingly, we conclude a party who dismisses a petition with prejudice following a settlement of the issues in the case may maintain an action for intrinsic fraud perpetrated by the other party in the settlement and dismissal. We reverse the order entered by the district court and remand this case for further proceedings.
REVERSED AND REMANDED.
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