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The stipulation of discontinuance is signed by the plaintiff stating the case is now over, and the defense also signs it before filing it with the court.
Lawyers call it a ?stip.? The stip gets filed with the Court to complete the case. If the case is settled by a loan modification, there will be a stip of discontinuation. The borrower/homeowner will want the stip to be ?with prejudice? which means that the lender cannot sue again based on the same loan default.
In any discontinued action, the attorney for the plaintiff shall file a stipulation or statement of discontinuance with the clerk of the court within 20 days of such discontinuance.
?With prejudice? means that you cannot re-file your case ever. ?Without prejudice? means that you can re-file your case at a later date (as long as you are still within the statute of limitations).
This document must then be signed by all the attorneys in the case which confirms that the case has been ended voluntarily. In New York, this document must be filed in court together with a filing fee. It officially lets the court know that the case is over and they can close the court file.