You have filed suit against a tenant for breaking the lease who still occupies the rental and has not broken the lease as yet. Now you want to drop it when the tenants file a counterclaim against you! Your suit was premature as you have no damages as of yet, since the tenants are still there. You have filed suit because your tenants will not follow a poorly written lease clause for early termination of lease the way you desire them to do. What grounds or violation did you file suit on? It's hard to believe a judge would issue any ruling for you as the tenants have not vacated. All you have done is piss off the tenants who can turn around and stay since you have refuse the early termination, making your life a living hell!
Thanks for your advice, Danny Downer. I filed it because they told me they would not pay September and that was their stance. Nothing was going to change that. They are moving across the country to California, so trying to serve them there would've been a huge hassle. That's why I did it before they moved out. And I do have damages as the 2 month breaklease penalty was due on 6/30 and I did not receive it.
You obviously know nothing of the situation with these tenants and they will not make my life a living hell. They are respectful tenants who I did not see eye to eye with on this lease termination clause. They understood I likely would take them to court over the second month. Not every tenant is out there to screw over their landlords. You should do better screening if you think they are, because that seems to be the only tenants you ever get. With that angry of a disposition, it's no wonder.