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No, you do not need to respond to the answer. The petition and answer are not proof of anything, they are only allegations and then admission/denials. It simply sets the stage as to what the issues in the case are, so no response is needed. You get to that point later if there is a motion to dismiss, motion for summary judgment, or the matter goes to trial. At that point, you have to back up your allegations with admissable evidence - depositions, affidavits, live testimony, records, etc.
Along with the answer, there is a motion to dismiss and a "memorandum supporting the motion to dismiss".
I do have to adress the motion to dismiss, correct?
You just need to file a response to the motion for summary judgment then.
Sorry, I meant motion to dismiss.
So is this where i say that the allegations are untrue and an attempt to deter the court from the issue >
Or deny the claims in the memorandum by simply stating all of them are untrue
Yes, and you have to back up your arguments showing the court that there is a justiciable issue so a dismissal would not be proper. You can find a lot of information on preparing a motion for summary judgment by searching google or other search engines.
You will also need to review the court rules on civil procedure for your state, and any local court rules, to ensure your motion is appropriately prepared.