Tuesday, January 19, 2016 10:14:57 PM
It is also pretty common for the defendant to counterclaim with malicious prosecution and abuse of process claims - which virtually always fail.
Because it's damn, damn hard to PROVE that a lawsuit lacks any merit whatsoever and was filed with malice for an intent other than a belief that the plaintiff has a viable claim. Very, very rarely will such counterclaims prevail.
Which is why these vexatious lawsuits are filed all the time. All you need is the tiniest shred of a claim, even though you know it's boolsheet, to survive a counterclaim of abuse of process and/or malicious prosecution. Usually the only times such claims prevail is when there is a smoking gun found - like a stupid email from the company CEO or chairman to someone (nott subject to the attorney-client privilege) saying "we know the lawsuit is boolsheet - our lawyers told us there's no way we can win this but we've filed it anyway".
For the same reasons, you'll often see motions for Rule 11 sanctions in these types of commercial litigation - and these motions will virtually always be denied except in the most egregious contexts and usually also requiring a red-line smoking gun admission (e.g., am email or such).
It is fairly easy to cook up a variety of 'colorable' claims which have no real chance to succeed, butt also are very difficult to PROVE are an abuse of process or malicious prosecution.
I am simply explaining to you the reality - as a lawyer with AmLaw200 experience, in the Bay Area, in this exact market sector.
So, believe whatever you want. It's a free country. Feel free to remain dead wrong. I'm just explaining reality here, nott belief systems.
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