Thursday, August 6, 2015

No Rule 11 Sanctions for Unsuccessful RICO Counterclaim Against NPE Plaintiff

The court denied plaintiff's motion for Rule 11 sanctions after the court dismissed defendant's RICO claims. "Defendant contends that its counterclaim was 'premised on a far broader and more nefarious course of conduct than the mere filing of a single lawsuit.' Defendant alleged that Plaintiff’s business model was based on filing hundreds of frivolous lawsuits and the seeking of calculated nuisance settlements. . . . Defendant points out that other jurisdictions have favorably viewed RICO claims based on facts similar to its RICO claim. Although the Court dismissed the RICO counterclaim in favor of Plaintiff, the Court concludes that the RICO counterclaim was neither frivolous nor brought for any improper purpose. While the Court ultimately disagreed with Defendant’s legal theory, that alone cannot form a basis under Rule 11."

ArrivalStar SA et al v. Demandware, Inc., 9-15-cv-80098 (FLSD August 4, 2015, Order) (Marra, J.)

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