DISH Network L.L.C. v. Llinas
3:17-cv-02084
D.P.R.Apr 20, 2018Background
- DISH Network and NagraStar sued Llinas, Rivera and FJ Internet Solution alleging importation/distribution of devices that circumvent DISH’s security and enable unauthorized reception of programming under federal statutes (DMCA, FCC Act, ECPA).
- Llinas and Rivera answered and asserted a single counterclaim for abuse of process under Puerto Rico law, alleging DISH/NagraStar filed a meritless suit with bad motive.
- The counterclaim’s factual allegations rested primarily on the contention that the original complaint was filed in bad faith; no facts alleged misuse of discovery, subpoenas, attachments, or other post-filing procedural acts.
- DISH and NagraStar moved to dismiss the abuse of process counterclaim under Fed. R. Civ. P. 12(b)(6).
- The District Court reviewed governing pleading standards and Puerto Rico law elements for abuse of process: (1) bad motive and (2) use of process for an improper, collateral purpose (an abusive act).
- The Court found the counterclaim pleaded only wrongful motive tied to filing the lawsuit and no abusive act, and therefore dismissed the counterclaim with prejudice.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether filing a lawsuit alone can support an abuse of process claim | DISH/NagraStar: motion to dismiss—filing alone is not an abusive act | Llinas/Rivera: complaint was meritless and filed in bad faith, so constitutes abuse of process | Filing a lawsuit alone is insufficient; counterclaim dismissed for failure to plead an abusive act and plausible bad motive |
| Pleading sufficiency under Rule 8/Twombly for abuse of process | DISH/NagraStar: counterclaim lacks factual detail to raise claim above speculative level | Llinas/Rivera: alleged lack of good faith and willful intent suffices | Complaint’s conclusory allegations fail Twombly/Iqbal standard; dismissal proper |
| Applicability of Noerr–Pennington (immunity) | DISH/NagraStar: raised as alternative defense | Llinas/Rivera: did not address in detail | Court did not reach Noerr–Pennington because counterclaim was dismissed on pleading grounds |
| Choice of law and supplemental jurisdiction | DISH/NagraStar: federal court may hear state-law counterclaim under supplemental jurisdiction | Llinas/Rivera: N/A | Court applied Puerto Rico law under supplemental jurisdiction and evaluated abuse-of-process elements accordingly |
Key Cases Cited
- Bell Atl. Corp. v. Twombly, 550 U.S. 544 (establishes plausibility pleading standard)
- Ocasio-Hernández v. Fortuño-Burset, 640 F.3d 1 (First Circuit: view facts in plaintiff’s favor on Rule 12(b)(6))
- Simon v. Navon, 71 F.3d 9 (filing a lawsuit alone is not an abusive act for abuse of process)
- González-Rucci v. United States INS, 539 F.3d 66 (describing elements of abuse of process under applicable law)