This section contains the nature of the case and procedural background.

Chantilly (P) sued Schwabe (D) for nonpayment of rent. D claimed that they were fraudulently induced into signing the lease. Judgment was given to D. D then sued P for compensatory and punitive damages based upon fraud and malicious prosecution. D moved to dismiss the action based on fraud in that D should have counterclaimed in the first action. The trial court agreed and struck the fraud action from the complaint. D appealed.

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