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Motion For Summary Judgment On Abuse of Process Claims
Motion For Summary Judgment On Abuse of Process Claims
Defendants Paul Mobley and Troy Branson (NRI, Paul Mobley, and Troy Branson hereinafter
MEANS LLC, pursuant to Rule 56 of the Federal Rules of Civil Procedure, respectfully submit
this brief in support of their motion for summary judgment on the abuse of process claim filed by
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7405 Indy Corp (“7405”), and Northlake Marketing LLC (“Northlake”) (Gateway, 7405, and
Northlake, hereinafter referred to collectively as “the Gateway Parties”). The NRI Defendants will
TABLE OF CONTENTS
I. INTRODUCTION [3]
A. Pre-Lawsuit Negotiations
V. CONCLUSION [14]
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I. INTRODUCTION
NRI is an Indiana-based for-profit corporation, with Indiana roots dating back more than
fifty years, in the business of scratch-made pizza and related food offerings made available for sale
entertainment facilities, and as “take and bake” pizzas from grocery stores. Many of its restaurants
are operated through franchise agreements with private owners. In such cases, the franchisees are
granted a contractual license to market and sell NRI pizza and other food in exchange for
This case arises from NRI’s allegations that the Gateway Parties, which own and operate a
chain of convenience stores branded as “LUKE’S”, breached the terms of the operative franchise
agreement governing fourteen (14) store locations and otherwise violated the Lanham Act
including by selling non-NRI products in branded warmer racks and failing to de-brand from
affiliation with NRI upon the natural expiration of the franchise agreement. In their best attempt
to play defense with offense, the Gateway Parties sued NRI’s Executive Chairman Paul Mobley
and its Executive Vice President, Troy Branson for abuse of process, and filed the claim in counter
against NRI as well, based on a handful of communications occurring between the parties prior to
On or about June 30, 2013, NRI and Gateway entered into a Master Franchise Agreement
with the addition of three amendments on June 22, 2016, December 21, 2016, and October 18,
2017 (collectively referred to herein as the “Franchise Agreement”). [Dkt. 59-1 at 2 (Ex. A,
Affidavit of Paul Mobley (“Mobley Aff.”)).] Pursuant to the agreement, Gateway was authorized
to sell “Noble Roman’s” branded food items and further agreed to, in pertinent part, sell or offer
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all menu items for sale in the manner prescribed by NRI, and to sell only the items expressly
permitted by NRI. [Dkt. 59-2 at 15 (Ex. A, Mobley Aff., Tab 1, § VIII(E)(1), (2)).] Gateway also
agreed to use “Noble Roman’s” trademarks in connection with their food items. [Dkt. 59-2 at 18
(Ex. A, Mobley Aff., Tab 1, § IX(C)(1)).] Gateway agreed upon termination to cease the use of
any and all “Noble Roman’s” trademarks, return all property owed to NRI, and cease presenting
themselves as an affiliate of NRI. [Dkt. 59-2 at 29-30 (Ex. A, Mobley Aff., Tab 1, § XVIII(A),
(B), (E)).] The term of the Franchise Agreement ended upon its natural expiration on December
31, 2019. [Dkt. 59-2 at 1 (Ex. A, Mobley Aff., Tab 1, Amendment # 3).] The fourteen (14)
LUKE’S store locations governed by the Franchise Agreement at its expiration were listed on a
NRI discovered that, during the term of the Franchise Agreement, Gateway placed
meatloaf, cheeseburgers, pulled pork, chicken, grilled chicken, and spicy chicken sandwiches (all
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non-NRI products) in an NRI branded warmer rack at the LUKE’S stores listed on Schedule 1A
as locations numbers 1, 2, 4, 8 and 14. [Dkt. 59-5 at 2-3 (Ex. B, Defendants’ Answers to Plaintiff’s
On October 14, 2020, NRI filed a complaint in Indiana state court claiming theft and
conversion, breach of franchise agreement, trademark infringement, and unjust enrichment. See
generally, [Dkt. 1-2 at 7-17 (Compl.).] In response, the Gateway Parties removed the case to this
Court and on March 8 concurrently answered NRI’s claims, asserted affirmative defenses to them,
and moved to dismiss them. [Dkt. 15 at 1-27 (Defendants’ Counterclaim) and Dkt. 17 at 1-13
(Defendants’ Motion to Dismiss).] The Gateway Parties also initiated counterclaims against NRI,
and third-party claims (erroneously styled as “counterclaims”) against Troy Branson and Paul
appearance by the undersigned attorneys and their law firm, NRI amended its complaint on April
2 to drop the civil theft and conversion claims thereby narrowing the issues to the Gateway Parties’
contract breach and trademark infringement. [Dkt. 30 at 1-12 (Amended Compl.).] NRI also
dropped Gateway principal Thomas M. Collins III and a Gateway-affiliated special purpose entity,
as named defendants in the lawsuit. (Id.) In response to the amended pleading, the Gateway
Parties essentially restated their answer pleading and maintained the abuse of process claims
The Gateway Parties allege that NRI’s claims are objectively unreasonable (only to later
admit in discovery facts which prove the operative claims) and were not filed to obtain a judgment
but instead for the ulterior motives of causing the Gateway Parties to incur costs and to scare other
franchisees into compliance to avoid similar litigation. [Dkt. 37 at 20-21 (Amended Counterclaim,
¶¶ 25-27).] They allege comments made by Mr. Mobley and Mr. Branson during settlement
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negotiations, referring to costly litigation, payment of legal fees, and a long period of discovery,
In a July 15, 2019 letter, Mr. Mobley refers to a settlement offer previously made by his
colleague Mr. Branson, notes Gateway’s rejection of the offer, and makes a new offer. [Dkt. 59-
3 at 2 (Ex. A, Mobley Aff., Tab 2).] He closes the letter by stating “If the settlement offer expires,
Noble Roman’s will pursue all legal remedies available to it, which includes any legal fees for
pursuing its rights and protecting its franchise.” [Dkt. 59-3 at 2 (Ex. A, Mobley Aff., Tab 2).] On
Whether you have corrected “both the photo and product violations” does not wipe
away the damage that had already been done. As to whether or not Luke Brand’s
(sic) is still in non-compliance will have to be determined. If we are forced to file
a lawsuit we will have a significantly long period of discovery as we will subpoena
all accounting records, sales records, purchase records and any other financial
information to determine our ultimate damages. In addition, we will conduct
interrogatories of everyone in your organization with knowledge of its activities in
order to determine all the facts.
Our offer to extend the agreement and come into compliance immediately was
clearly labeled as an attempt to settle. We now have given you more than ample
time to propose any settlement that you desire to propose but you have just
continually delayed with one excuse after another. As Mr. Branson has
communicated to you, the settlement offer we made is just an attempt to settle. If
you prefer to settle by compensating us for the damages you need to make that
offer, however, it is only fair to warn you that is going to be an expensive way to
settle our claim.
[Dkt. 59-4 at 1-2 (Ex. A, Mobley Aff., Tab 3).] Mr. Branson spoke with Mr. Collins and, according
to the Gateway Parties, made statements such as “start running up the bill,” “it’s going to be
costly,” and “very clear in that you’ll pay our legal fees.” [Dkt. 37 at 18 (Amended Counterclaim
¶12).] Despite this emphasis on NRI’s discussion of fees during negotiations, the Gateway Parties
acknowledge in their own counterclaim that attorneys’ fees may be awardable as part of the claims
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filed by NRI – under Section 1117(a) of the Lanham Act (“[t]he court in exceptional cases may
award reasonable attorney fees to the prevailing party” and under the terms of the Franchise
that one party must prevail as a matter of law. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 251-
252 (1986). Upon filing of a proper motion, the court shall grant summary judgment if the movant
shows that there is no genuine dispute as to any material fact and the movant is entitled to summary
judgment as a matter of law. Fed. R. Civ. P. 56(a). The moving party must cite to particular parts
of the materials in the record to support the assertion that a fact cannot be genuinely disputed. Fed.
R. Civ. P. 56(c)(1)(a). “A genuine issue as to any material facts exists ‘if the evidence is such that
a reasonable jury could return a verdict for the nonmoving party.’” Daugherty v. Page, 906 F.3d
606, 609-10 (7th Cir. 2018) (quoting Anderson, 477 U.S. at 248). The court views the facts in a
light most favorable to the non-moving party and all reasonable inferences are drawn in the non-
movant’s favor. Barbera v. Pearson Ed., Inc., 906 F.3d 621, 628 (7th Cir. 2018). “Irrelevant or
unnecessary facts do not preclude summary judgment even when they are in dispute.” Anderson,
477 U.S. at 248. The non-moving party must come forward with specific facts showing that there
In order to prevail upon a claim of abuse of process, the Gateway Parties must prove the
NRI Defendants (1) acted with an ulterior purpose and (2) undertook a willful act in the use of
process not proper in the regular conduct of the proceeding. Reichhart v. City of New Haven, 674
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N.E.2d 27, 30 (Ind. Ct. App. 1996). Neither element can be established but the focus of this motion
is on the latter of the two which contains two parts – a showing of process and the willful act – and
“The starting point for analysis of an abuse of process claim is to determine whether the
employing that process.” Panwar v. Access Therapies, Inc., No. 1:12-cv-00619-TWP-TAB, 2013
WL 320673 at *2 (S.D. Ind. 2013) (citing Reichhart, 674 N.E.2d at 31). “Process” is defined as
“action undertaken by a litigant in pursuing a legal claim.” Konecranes, Inc. v. Davis, No. 1:12-
cv-01700-JMS-MJD, 2013 WL 5701046 *5 (S.D. Ind. October 18, 2013) (quoting Reichhart,
674 N.E.2d at 32). It requires the use of “the judicial machinery.” Id.
A. Pre-Lawsuit Negotiations
The NRI Defendants would concede that the filing of a complaint would be considered
process, and this is one of the components of the Gateway Parties’ abuse of process claim. [Dkt.
37 at 20-21 (Amended Counterclaim, ¶¶ 24-30).] But the other component of the Gateway Parties’
claim is premised upon words that Mr. Mobley and Mr. Branson wrote and said during settlement
negotiations, concerning the potential costliness of litigation, incurrence of legal fees, and the
potential for a protracted discovery process. [Dkt. 37 at 17-20 (Amended Counterclaim ¶¶ 11, 12,
and 20).] While the definition of process can be expansive, the mere threat of litigation during
settlement negotiations is not a use of the courts, legal process, or “the judicial machinery.” The
Gateway Parties cannot demonstrate a basis for statements which references, or even amount to
threats of litigation constitute “process” as no judicial machinery has been used or abused here.
Therefore, this component of their claim warrants no further consideration on its merit to support
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Assuming arguendo that threats of future process constitute “process” (which they do not),
the second component of the willful act of improper process element – the “willful act” itself –
cannot be shown. For this component, the Gateway Parties cling to Mr. Mobley’s reference to
attorneys’ fees in pre-litigation correspondence, where he writes of NRI’s intent to “pursue all
legal remedies available to it, which includes any legal fees for pursuing its rights and protecting
its franchise”, and Mr. Branson’s alleged statements that “it’s going to be costly”, and that under
both the Franchise Agreement and the Lanham Act it’s “very clear in that you’ll pay our legal
fees.” [Dkt. 37 at 17-20 (Amended Counterclaim ¶¶ 11-20); Dkt. 59-3 at 2 (Ex. A, Mobley Aff.,
Tab 2).] Certainly, the Gateway Parties cannot with a straight face allege that the NRI Defendants
references to fees and the costliness of litigation constitute a willful act, when the Gateway Parties
themselves readily admit in the same pleading that attorneys’ fees may indeed be recoverable by
NRI in the lawsuit that was ultimately filed. [Dkt. 37 at 18 (Amended Counterclaim ¶¶ 13-15).]
If this is their position, it falls well short of what would meet the willful act of improper process
Perhaps the Gateway Parties meant to say that NRI Defendants’ fee and litigation references
were willful and improper process use because NRI’s claims lacked merit and therefore the fees
the NRI Defendants referred to would never be awarded as a remedy to NRI. We are now operating
well outside the bounds of the willful act of improper process standard. Nonetheless, the Gateway
Parties claim still fails. The NRI Defendants were confident in the merit of their claims when Mr.
Mobley and Mr. Branson sparred with Mr. Collins. And for good reason – the Gateway Parties
have admitted during discovery in this case that non-NRI products were placed in an NRI branded
warmer. [Dkt. 59-5 at 2-3 (Ex. B, Defendants’ Answers to Plaintiff’s First Set of Interrogatories,
Answer No. 2).] The Gateway Parties still wish to quarrel about damages, rebut that a fee recovery
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is warranted, or argue that Mr. Branson acquiesced to the improper use of NRI’s trademarks. But
these are defenses and affirmative defenses for the Gateway Parties to assert at trial, they are not
the foundation for an abuse of process claim under Indiana law. On the contrary, an arguably
viable claim cannot support grounds for abuse of process. See generally Reichhart, 674 N.E.2d at
33. That NRI’s claims including its fee remedies are viable is not debatable.
The NRI Defendants’ offer to extend the term of the Franchise Agreement in settlement of
NRI’s claims fairs no better as the basis for the Gateway Parties’ abuse claim. The offer is just
that, an offer of settlement made clear by Mr. Mobley in his request for a counteroffer of an
extended term or compensation by way of damages. [Dkt. 59-4 at 2 (Ex. A, Mobley Aff., Tab 3).]
Ultimately, settlement was not successful forcing NRI to file suit against the Gateway Parties to
An abuse of process claim contains two distinct elements, and a party must first establish
that the defendant employed improper “process” before the court proceeds to an examination of
the defendant’s motivation. Reichhart, 674 N.E.2d 27, 31 (citing Comfax Corp. v. North American
Van Lines, Inc., 638 N.E.2d 476, 481-83 (Ind. Ct. App. 1994)). As set for above, the NRI
Defendants’ use of process was proper, the abuse claim fails, and the investigation into the NRI
Defendants’ motives stops there. In other words, “there is no liability where the defendant has
done nothing more than carry out the process to its authorized conclusion, even though with bad
intentions.” Reichhart, 674 N.E.2d 27, 31(quoting Groen v. Elkins, 551 N.E.2d 876, 878-79 (Ind.
NRI’s filing of the pleadings are a use of process, sure, but its use of process was both
substantively and procedurally proper thus there was no abuse. There was no ulterior motive to
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the lawsuit other than to collect damages based on the wrongdoing of the defendant Gateway
Parties. Only where a complaint is filed for a purpose other than resolving a dispute or seeking
damages is it substantively improper and does it give rise to an abuse of process claim. See Estate
of Mayer v. Lax, Inc., 998 N.E.2d 238, 257 (Ind. Ct. App. 2013) (“There must be evidence that an
attorney filed a claim for a purpose other than aiding his or her client in adjudicating his or her
claim.”). For instance, in Lindsay v. Jenkins, the abuse of process plaintiff had direct evidence
that a lawsuit was filed against a party known to be immune from the claims, but because forcing
the immune party to defend the claims was more expensive than merely filing it. 574 N.E.2d 324,
326 (Ind. Ct. App. 1991) (emphasis added). The Lindsay case and the one at bar could hardly be
more different.
Here, the NRI Defendants’ statements relied upon by the Gateway Parties do not amount
to evidence that this lawsuit was initiated for a reason other than resolving the dispute or seeking
damages. As discussed above, the references to fees were made because, indeed, the NRI
Defendants have valid attorneys’ fees—the Gateway Parties have themselves acknowledged this.
[Dkt. 37 at 18 (Amended Counterclaim ¶¶ 13-15).] Further, the NRI Defendants’ telegraphed their
intent to “pursue all legal remedies available” and conduct discovery to “get all the facts” – in
other words, to use proper process to be made whole for the Gateway Parties’ violations of the
Franchise Agreement and Lanham Act. And, the NRI Defendants made an opening offer to settle
through the extension of the term of the Franchise Agreement, a starting point for settlement
negotiations that failed, causing NRI to file the complaint seeking recovery of its damages. [Dkt.
Lacking any direct evidence of the willful act of improper process elements and trying to
find some way to establish their claim, the Gateway Parties pivot and attack NRI’s complaint as
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invalid, unwarranted, and unreasonable. [Dkt. 37 at 20 (Amended Counterclaim, ¶¶ 21, 22, and
25).] While the validity of legal claims can be relevant to whether filing them constitutes an abuse
of process, Indiana precedent shows that the invalidity standard is triggered only when legal claims
are legally deficient and lacking in any factual basis. See generally Estate of Mayer, 998 N.E.2d
at 258.
Here, we have only the Gateway Parties’ conclusory allegation that NRI’s claims are
invalid and objectively unreasonable. The Gateway Parties will pick the low-hanging fruit of the
theft and conversion claims that were voluntarily dismissed (not adjudicated in any respect) by
NRI. Even these claims, while no longer being pursued by NRI were far from objectively
unreasonable when brought. The Indiana Supreme Court in An-Hung Yao v. State, 975 N.E.2d
1273 (2012), found that for purposes of a violation of Indiana’s theft statute, I.C. §35-43-4-2, that
the definition of property can include “trademarks and/or markings or symbols of identification”
that may be “encumbered”. An-Hung Yao v. State, 975 N.E.2d 1273, 1281-82 (2012).
Indiana courts also look to a claim’s progression within the legal system to gauge whether
there was a willful act of improper process. In Konecranes, Inc. v. Davis, the defendant won a
motion to dismiss two of the plaintiff’s four claims, and the plaintiff filed an amended complaint.
October 18, 2013). The amended pleading set forth the two new claims, so the defendants
answered and filed counterclaims including for abuse of process. Id. The Konecranes Court found
that unlike Lindsay, where there was direct evidence that the lawsuit lacked merit and was instead
brought specifically to impose costs upon the defendant, a portion of the plaintiff’s claims in
Konecranes remained and were proceeding. Id. at *6. The Konecranes Court held that because
the claims proceeded through the legal process as intended, with the defendants filing an answer
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and counterclaims of their own, the plaintiff’s filing of the complaint did not constitute an abuse
of process. Id.
In the instant case, NRI’s initial complaint was met with a motion to dismiss that was
rendered moot when an amended pleading was filed. The Konecranes Court noted that the
defendants did not move to dismiss two of the four claims, but instead answered the claims. Same
here. Once NRI amended its claims, they were answered and are now proceeding through
litigation. In its abuse of process analysis, the Konecranes Court gave no weight to the fact that
the court granted defendants’ motion to dismiss on two of the claims; certainly, no consideration
of NRI’s decision to voluntarily dismiss some of the claims challenged by the Gateway Parties in
their motion to dismiss would be warranted here. By filing an answer and not moving to dismiss
NRI’s new operative pleading, the Gateway Parties implicitly admit that NRI has alleged claims
upon which relief may be granted. NRI’s filing of the lawsuit was not an abuse of process because
it was used to institute a civil action that is proceeding as the process intended, making it both
NRI’s lawsuit has proceeded normally and the pre-lawsuit negotiations between the parties
are not direct evidence that the lawsuit lacked merit or was otherwise brought specifically to
impose costs upon the Gateway Parties or for purposes of intimidation. Therefore, the NRI
Defendants’ motive behind the litigation as alleged by the Gateway Parties, is irrelevant and
Plaintiffs’ abuse of process claim fails. Konecranes, Inc., 2013 WL 5701046 *5 (citing Comfax
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V. CONCLUSION
For the foregoing reasons, the NRI Defendants respectfully request that this Court grant
summary judgment in their favor and against the Gateway Parties on the abuse of process claim
Respectfully Submitted,
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CERTIFICATE OF SERVICE
This is to certify that on September 14, 2021, the foregoing paper was filed electronically
with the Clerk of the Court using the Court’s Electronic Case Filing (ECF) System. Notice of this
filing will be sent to all parties by operation of the ECF system. The following parties may access
Ronald J. Waicukauski
Carol Nemeth Joven
WILLIAMS & PIATT, LLC
301 Massachusetts Avenue, Suite 300
Indianapolis, Indiana 46204
(317) 633-5270
ron@williamspiatt.com
carol@williamspiatt.com
/s/ Jaime L. Meyer
Jaime L. Meyer
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