# Lukuta v. Angelella

> District Court, M.D. Pennsylvania · April 10, 2024

URL: https://www.frixlaw.com/law-library/cases/10414576

## Case

- **Court:** District Court, M.D. Pennsylvania
- **Decided:** April 10, 2024
- **Opinion:** 100trialcourt
- **Cited by:** 0 later opinions in the Frix Law Library

## Citator (automated)

- No negative treatment found by the automated citator. That is not the same as a confirmation that the case is good law; read the citing cases.
- Full citator and citing cases: https://www.frixlaw.com/law-library/cases/10414576

## How later opinions describe it (automated extraction)

- holding that towing company did not have any protected property interest in remaining on police’s list of approved towing and salvage service providers
- holding that towing provider did not have a constitutionally protected property interest in providing towing services on state highway

## Opinion text

UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF PENNSYLVANIA

Joseph Lokuta, III, individually : CIVIL ACTION NO. 3:23-cv-1617
and d/b/a Lokuta’s Garage
Corp., : (JUDGE MANNION)

Plaintiff, :

v. :

Lena Angelella, David Slezak, :
Joseph Hawk, Stephen Rinaldi,
and John Bonita, :

Defendants. :

MEMORANDUM

Presently before the court are Defendants’ motion for sanctions, (Doc.
7), and motion to dismiss, (Doc. 9). Plaintiff provides towing services in
Pittston Township Pennsylvania. Defendants are Pittston Township officials.
Plaintiff alleges that Defendants have inter alia violated his constitutional
rights by not hiring his towing services since 2019. Defendants argue that
Plaintiff’s claims are meritless, groundless, and frivolous warranting not only
dismissal with prejudice but also sanctions against Plaintiff’s counsel,
Andrew J. Katsock, III. The court agrees with Defendants that Plaintiff has
no constitutional right to provide towing services to Pittston Township, nor do
Defendants have any constitutional obligation to hire Plaintiff’s services.
However, the court does not deem Mr. Katsock’s conduct severe enough to
warrant sanctions. Accordingly, Defendants’ motion for sanctions will be
DENIED but their motion to dismiss will be GRANTED in its entirety.

I. Background
Plaintiff provides towing and other automotive services in and around
Pittston Township Pennsylvania. At all relevant times Plaintiff’s garage was

licensed and appointed by the Pennsylvania Department of Transportation
(“PennDOT”) as an official motor vehicle emission inspection station. Plaintiff
has also attained the designation of being “Wreck Master Certified” and has
been voted “Best Tower in the Wyoming Valley” nearly every year since

2013.1 Nonetheless, Plaintiff has not been called or otherwise hired by
Pittston Township to provide any services since 2019. This is also despite
Plaintiff’s repeated attempts to be selected as the township’s vehicle towing

and impoundment service provider and the township needing such services
on multiple occasions since 2019. Plaintiff alleges that the township’s police
chief, administrator, and two of its current and one former supervisor
(collectively “Defendants”) are solely responsible for the lack of service calls

to him.

1 Plaintiff does not say who awarded him these designations, how he
earned them, and if they have any legal significance.
On September 28, 2023, Plaintiff filed a four-count complaint against
Defendants alleging violations of his Fourteenth Amendment procedural and

substantive due process rights, a violation of the Dormant Commerce
Clause, and a pendant state law claim for “violation of public policy.” On
January 3, 2024, Defendants issued a safe harbor notice to Mr. Katsock

seeking withdrawal of his client’s complaint pursuant to Federal Rule of Civil
Procedure 11(c). On January 25, 2024, the safe harbor period expired
without a response from Mr. Katsock and Defendants filed the present
motion for sanctions. Subsequently on January 26, 2024, Defendants also

filed the present motion to dismiss.
II. Legal Standard
Defendants’ motion to dismiss is filed pursuant to Federal Rule of Civil

Procedure 12(b)(6) and their motion for sanctions is filed pursuant to Federal
Rule of Civil Procedure 11.
A. Rule 12(b)(6)
Rule 12(b)(6) provides for the dismissal of a complaint, in whole or in

part, if the plaintiff fails to state a claim upon which relief can be granted.
Fed.R.Civ.P.12(b)(6). The moving party bears the burden of showing that no
claim has been stated, Hedges v. United States, 404 F.3d 744, 750 (3d Cir.

2005), and dismissal is appropriate only if, accepting all of the facts alleged
in the complaint as true, the plaintiff has failed to plead “enough facts to state
a claim to relief that is plausible on its face,” Bell Atlantic Corp. v. Twombly,

550 U.S. 544, 127 S. Ct. 1955, 1974 (2007) (abrogating “no set of facts”
language found in Conley v. Gibson, 355 U.S. 41, 45-46 (1957)).
The facts alleged must be sufficient to “raise a right to relief above the

speculative level.” Twombly, 550 U.S. 544, 127 S. Ct. at 1965. This
requirement “calls for enough fact[s] to raise a reasonable expectation that
discovery will reveal evidence of” necessary elements of the plaintiff’s cause
of action. Id. Furthermore, in order to satisfy federal pleading requirements,

the plaintiff must “provide the grounds of his entitlement to relief,” which
“requires more than labels and conclusions, and a formulaic recitation of the
elements of a cause of action will not do.” Phillips v. County of Allegheny,

515 F.3d 224, 231 (3d Cir. 2008) (brackets and quotations marks omitted)
(quoting Twombly, 550 U.S. 544, 127 S. Ct. at 1964-65).
When granting a motion to dismiss under Rule 12(b)(6) courts should
generally give leave to amend but may dismiss a complaint with prejudice

where leave to amend would be futile. See Grayson v. Mayview State Hosp.,
293 F.3d 103, 108 (3d Cir. 2002). See also In re Burlington Coat Factory
Sec. Litig., 114 F.3d 1410, 1434 (3d Cir. 1997)) (“In determining whether
[amendment] would be futile, the district court applies the same standard of
legal sufficiency as [it] applies under Fed. R. Civ. P. 12(b)(6).”

B. Rule 11
Rule 11 imposes an affirmative duty on an attorney and/or a party to
conduct a reasonable inquiry into the factual and legal bases of all claims

before filing any document with the court. Business Guides, Inc. v. Chromatic
Commc’ns Enters., Inc., 498 U.S. 533, 551, 111 S.Ct. 922, 112 L.Ed.2d 1140
(1991); Bensalem Twp. v. Int’l Surplus Lines Ins. Co., 38 F.3d 1303, 1314
(3d Cir.1994).

In relevant part, Rule 11 provides:
(b) Representations to the Court. By presenting to the court a pleading,
written motion, or other paper—whether by signing, filing, submitting,

or later advocating it—an attorney or unrepresented party certifies that
to the best of the person’s knowledge, information, and belief, formed
after an inquiry reasonable under the circumstances:
(1) it is not being presented for any improper purpose, such as to

harass, cause unnecessary delay, or needlessly increase the cost of
litigation;
(2) the claims, defenses, and other legal contentions are warranted by
existing law or by a nonfrivolous argument for extending, modifying, or

reversing existing law or for establishing new law;
(3) the factual contentions have evidentiary support or, if specifically
so identified, will likely have evidentiary support after a reasonable

opportunity for further investigation or discovery ...
Fed. R. Civ. P. 11(b)(1)-(3). In other words, attorneys have an obligation to
“Stop, Think, Investigate and Research” before filing papers either to initiate
a suit or to conduct the litigation. Gaiardo v. Ethyl Corp., 835 F.2d 479, 482

(3d Cir. 1987).
To determine whether a party or attorney has violated the duties of
Rule 11, the court must apply an objective standard of reasonableness under

the circumstances. Mary Ann Pensiero, Inc. v. Lingle, 847 F.2d 90, 92 (3d
Cir. 1988). See also Brubaker Kitchens, Inc. v. Brown, 280 F. App’x 174, 185
(3d Cir. 2008) (“It is well-settled that the test for determining whether Rule 11
sanctions should be imposed is one of reasonableness under the

circumstances, the determination of which falls within the sound discretion
of the District Court.”). The Third Circuit has held that “[a]n inquiry is
considered reasonable under the circumstances if it provides the party with

“an ‘objective knowledge or belief at the time of the filing of a challenged
paper’ that the claim was well-grounded in law and fact.” Bensalem Twp., 38
F.3d at 1314.

Rule 11 authorizes a court “to impose an appropriate sanction” on an
attorney and/or party found to have violated the obligations of the rule. Fed.
R. Civ. P. 11(c)(1). Appropriate sanctions may include directives of a non-

monetary nature, orders to pay a penalty into court, an award of attorney’s
fees and costs, or even dismissal of a case. Gaiardo, 835 F.2d at 482; Fed.
R. Civ. P. 11(c)(4). Still Rule 11 sanctions are “intended to be used only in
‘exceptional’ circumstances.” Teamsters Local Union No. 430 v. Cement

Express, Inc., 841 F.2d 66, 68 (3d Cir. 1988) (Rule 11 sanctions should be
imposed “only if the filing of the complaint constituted abusive litigation or
misuse of the court’s process.”) See also Gaiardo, 835 F.2d at 482 (While

Rule 11 targets “abuse—the Rule must not be used as an automatic penalty
against an attorney or a party advocating the losing side of a dispute.”)
Rule 11 violations by a party and/or attorney may be raised by the court
on its own initiative or by motion. Fed. R. Civ. P. 11(c)(2) and (3). If a party

chooses to bring a motion for sanctions under Rule 11, it must first serve the
motion on the party and/or attorney against whom sanctions are sought and
then wait at least 21 days after service before filing the motion with the court.

Fed. R. Civ. P. 11(c)(2). This “safe-harbor” provision of Rule 11 permits the
allegedly offending party or attorney an opportunity to withdraw the
challenged pleading. Id.

III. Discussion
Although Defendants’ motion for sanctions was filed first the court will
address their motion to dismiss to assess the merits or lack thereof of

Plaintiff’s complaint before analyzing the appropriateness of sanctions.
A. §1983 Statute of Limitations
Defendants argue that all of Plaintiff’s claims under 42 U.S.C. §1983
are barred by the statute of limitation. “Section 1983 has no statute of

limitations of its own.” English v. City of Wilkes-Barre, No. 22-2477, 2023 WL
2400698, at *1 (3d Cir. Mar. 8, 2023). “Rather, it borrows the state’s statute
of limitations for personal-injury torts.” Id. “In Pennsylvania, that period is two

years.” Id. However, Federal law governs when a §1983 claim accrues. Id.
“Under federal law, a cause of action accrues, and the statute of limitations
begins to run, ‘when the plaintiff knew or should have known of the injury
upon which its action is based.’” Doe v. City of Wilkes-Barre, No. CV 3:19-

938, 2021 WL 3674634, at *2 (M.D. Pa. Aug. 19, 2021).
Here Defendants argue that because Plaintiff alleges he has not been
hired by Pittston Township to provide any services since 2019, his alleged

injury occurred no later than December 31, 2019, or nearly four years prior
to the initiation of this action. As such Plaintiff’s §1983 claims are barred by
the applicable two-year statute of limitations. However, as Plaintiff points out

in his reply brief Defendants ignore the allegation that his alleged injuries are
continuing until present. 2019 is simply the year in which the alleged injury
began. The core of Plaintiff’s grievance is that he has not been hired to

provide towing services for nearly four years not that he was not hired to
provide towing services four years ago.
Nonetheless in their reply brief Defendants maintain that Plaintiff’s
§1983 claims are still time barred because he was aware of the injury at the

time of its occurrence and the continuing violations doctrine does not extend
the limitation period for the continual ill effects of the original violation.
However, construing the complaint in the light most favorable to Plaintiff as

the court is required to do on motion to dismiss, Plaintiff does allege that his
injury merely began to occur in 2019 and concedes that his claims insofar as
they are based on injuries suffered more than two years prior to the filing of
his complaint (i.e., before September 28, 2021) are time bared.

Furthermore, the continuing violations doctrine is “an equitable
exception to the timely filing requirement.” Cowell v. Palmer Township, 263
F.3d 286, 292 (3d Cir. 2001) (internal quotation marks omitted). Under the

doctrine, “when a defendant’s conduct is part of a continuing practice, an
action is timely so long as the last act evidencing the continuing practice falls
within the limitations period; in such an instance, the court will grant relief for

the earlier related acts that would otherwise be time barred.” Id. (internal
quotation marks omitted). Thus, Plaintiff’s §1983 claims within 2 years of the
filing of the complaint are timely because the alleged injury is from a

continuing practice evidenced by actions or in this case inactions occurring
through the present. Accordingly, Plaintiff’s §1983 claims are not entirely
time barred but they still substantively fail to state a plausible claim for relief.
A. Procedural Due Process

Plaintiff’s first §1983 claim is an alleged violation of his procedural due
process rights. In order to make out a claim for a violation of procedural due
process, a plaintiff must allege three elements: (1) that the defendant was

acting under color of state law; (2) that the defendant deprived him of a
property interest; and (3) the state procedures for challenging the deprivation
did not satisfy the requirements of procedural due process. Midnight
Sessions, Ltd. v. City of Phila., 945 F.2d 667, 680 (3d Cir. 1991) (overruled

on other grounds by United Artists Theatre Circuit v. Twp. of Warrington, 316
F.3d 392 (3d Cir. 2003))
Plaintiff adequately pleads that Defendants acted under color of state

law, but he does not allege that he was deprived of any property interest.
“One alleging a property interest in a benefit protected by due process must
go beyond showing an unsubstantiated expectation of the benefit.” Carter v.

City of Philadelphia, 989 F.2d 117, 120 (3d Cir. 1993). “To have a property
interest in a benefit, a person clearly must have more than an abstract need
or desire for it. He must have more than a unilateral expectation of it. He

must, instead, have a legitimate claim of entitlement to it.” Board of Regents
v. Roth, 408 U.S. 564, 577, 92 S.Ct. 2701, 2709, 33 L.Ed.2d 548 (1972).
Property interests are “created and their dimensions are defined by existing
rules or understandings that stem from an independent source such as state

law.” Id. Thus, Plaintiff “must demonstrate entitlement to a property interest
created expressly by state statute or regulation or arising from government
policy or a mutually explicit understanding between a government employer

and an employee.” Carter, 989 F.2d at 120.
Here, Plaintiff’s complaint does not reference or rely on any state
statutes, regulations, or any other basis to support the bald assertion that he
is entitled “to be contacted and appointed to provide towing and

impoundment services to Pittston Township.” Conversely Defendants
highlight authority explicitly denying the existence of any such property right.
See Piecknick v. Com. of Pa., 36 F.3d 1250, 1256 (3rd Cir. 1994) (holding

that towing provider did not have a constitutionally protected property interest
in providing towing services on state highway); Luongo v. Pennsylvania
State Police, 156 F. Supp. 3d 599, 607 (E.D. Pa. 2016) (holding that towing

company did not have any protected property interest in remaining on
police’s list of approved towing and salvage service providers).
Plaintiff does not even attempt to distinguish these cases in his brief in

opposition. Instead, he claims to have a protected property interest in his
garage’s license and appointment by PennDot as an official motor vehicle
inspection station, and still maintains that he has a right to provide towing
and impoundment services to Pittston Township. As to the former interest

Plaintiff does not in any way plead that Defendants interfered with his ability
to inspect vehicles. As to the latter interest Plaintiff cites two Supreme Court
cases completely out of context to claim that the Constitution protects “non-

possessory use and the right to exclude” as well as “any significant property
interest.” See Loretto v. Teleprompter Manhattan CATV Corp., 458 U.S. 419,
435 (1982); Fuentes v. Shevin, 407 U.S. 67, 86 (1972). Even if these were
correct characterization of the cases –they are not—they do not change the

fact that Plaintiff does not plead the right to exclude others from providing
towing services to Pittston Township let alone even an insignificant property
interest in the same. Accordingly, Plaintiff has failed to plead a plausible
procedural due process violation and the court will dismiss that claim with
prejudice because any amendment to it would be futile.

B. Substantive Due Process
Plaintiff’s second §1983 claim is an alleged violation of his substantive
due process rights. To establish a substantive due process claim, “‘a plaintiff

must prove [1] the particular interest at issue is protected by the substantive
due process clause and [2] the government’s deprivation of that protected
interest shocks the conscious.’” Chambers ex rel. Chambers v. Sch. Dist. of
Phila. Bd. of Educ., 587 F.3d 176, 190 (3d Cir. 2009) (quoting Chainey v.

Street, 523 F.3d 200, 219 (3d Cir. 2008)). Here Plaintiff does not provide
even a specter of proof that the particular interest at issue is protected by
substantive due process, nor does he even argue that the alleged deprivation

of that (nonexistent) right shocks the conscience.
Substantive due process rights are those rights which are
“fundamental” under the Constitution. Nicholas v. Pennsylvania State
University, 227 F.3d 133, 139–141 (3d Cir. 2000). A “fundamental right” must

be either enumerated in the Bill of Rights or “deeply rooted in this Nation’s
history and tradition, and implicit in the concept of ordered liberty.”
Washington v. Glucksberg, 521 U.S. 702, 720-21, 117 S.Ct. 2258, 138

L.Ed.2d 772 (1997) (quotations and citations omitted). Individuals have the
right to work for a living in the common occupations of the community, but
“[i]t is the liberty to pursue a calling or occupation, and not the right to a

specific job, that is secured by the Fourteenth Amendment.” See Piecknick,
36 F.3d at 1259–60 (internal quotations and quotation marks omitted).
There is not one allegation in Plaintiff’s complaint that even implies

Defendants’ actions have excluded him from continuing to provide towing
services to other customers. In fact, Plaintiff pleads that he has continued to
be voted “Best Tower in the Wyoming Valley” despite Defendants’ actions.
Likewise, courts in analogous cases have confirmed that there is no right to

be hired to provide specific towing services even when the alleged
deprivation of that right impacts a plaintiff’s business. See Luongo v. 156 F.
Supp. 3d at 608 n.5 (“Even construing every allegation in the Complaint in

the light most favorable to Plaintiffs, the Court cannot find any legal
entitlement, protected by the Due Process Clause, to Plaintiffs’ remaining on
the Approved List [of towers].) Accordingly, Plaintiff has failed to plead a
plausible substantive due process violation and the court will dismiss that

claim with prejudice because any amendment to it would be futile.
C. Commerce Clause
Plaintiff’s third §1983 claim is based on the Dormant Commerce

Clause, under which he also seeks a declaratory judgment that Defendants’
refusal to hire his towing services is unconstitutional. In determining whether
a state regulation is prohibited by the Dormant Commerce Clause, courts

apply a two prong test in which they first determines whether the state
regulation impermissibly discriminates against interstate commerce, and if
the answer is affirmative, then the regulation violates the dormant commerce

clause; however, if the answer is negative, courts then ask if the incidental
burdens imposed on interstate commerce are excessive in relation to the
putative local benefits, and if the answer is affirmative, then the regulation
violates the commerce clause but if answer is negative, then there is no

dormant commerce clause violation. See generally, Pike v. Bruce Church,
397 U.S. 137, 90 S.Ct. 844, 25 L.Ed.2d 174 (1970). Regardless the Dormant
Commerce Clause does not apply to “activities taking place exclusively

within the State’s borders.” See Am. Trucking Associations, Inc. v. Michigan
Public Service Com’n, 545 U.S. 429, 434 (2005) (finding tax on purely local
activity does not implicate interstate traffic or violate the Commerce Clause).
Here the disputed activities not only occurred exclusively within the

borders of Pennsylvania but also exclusively within the borders of Pittston
Township. In his complaint Plaintiff does not allege that in-state and out-state
economic interests were treated differently. He argues that Defendants’

refusal to hire his services has resulted in irreparable harm to both in-state
and out-of-state residents, because of Pittston Township’s proximity to
Interstate 81 and the Northeast Extension of the Pennsylvania Turnpike.

However, Plaintiff does not offer a single case cite in support of this
argument, nor does he explain how travelers on nearby interstates, have
been injured let alone irreparably harmed by Defendants’ actions.

There is no allegation in the complaint that Defendants have in anyway
stopped interstate travelers who want their vehicles towed by Plaintiff from
calling him. Plaintiff does not even plead that at any point since 2019
Defendants have hired anyone else to tow an interstate traveler’s vehicle.

Moreover, even if interstate travelers were irreparably harmed by the
conduct alleged herein Plaintiff does not have standing to sue or seek
declaratory relief on their behalf. Accordingly, Plaintiff has failed to plead a

plausible claim under the Dormant Commerce Clause and the court will
dismiss that claim including its request for declaratory relief with prejudice
because any amendment to it would be futile.2

2 Since Plaintiff does not plausibly plead an underlying constitutional
violation, he also cannot plead a claim for Monell liability. See Monell v. N.Y.
City Dep’t. of Soc. Servs., 436 U.S. 658, 98 S.Ct. 2018, 56 L.Ed. 2d 611
(1978). (A successful Monell claim must establish: “(1) an underlying
constitutional violation; (2) a policy or custom attributable to the municipality;
and (3) that the constitutional violation was caused by the municipality's
policy or custom.”)
D. State Public Policy
In addition to claims under §1983 Plaintiff also asserts a pendent state

law claim for “violation of public policy.” A court “may decline to exercise
supplemental jurisdiction [over state law claims] if ... the district court has
dismissed all claims over which it has original jurisdiction.” 28 U.S.C.

§1367(c)(3). Since the court will dismiss all of Plaintiff’s federal claims, the
court will decline to exercise supplemental jurisdiction over Plaintiff’s
pendent state law claim.
E. Rule 11 Sanctions

Based on the aforesaid Defendants argue that Plaintiff’s claims are
meritless, groundless, and frivolous and their refusal to withdraw the same
constitutes sanctionable conduct under Rule 11. Conversely Plaintiff argues

that the issues raised herein are at the “forefront of towing controversies”
and Defendant’s motion for sanctions is premature. He further asserts that
Defendants’ motion for sanctions is an impermissible motion to strike under
Rule 12(f)(2) and intended “to chill Plaintiff’s attorney’s enthusiasm and

creativity.”
Plaintiff tries to connect his case to two other cases involving towing
companies where this court recently denied motions to dismiss. See Toyota

Motor Credit Corp. v. Borough of Wyoming, PA, No. 3:23-CV-00377, 2023
WL 7412941, at *1 (M.D. Pa. Nov. 9, 2023); VW Credit Leasing LTD. v.
Lackawanna Cnty., No. CV 3:23-00378, 2023 WL 7549183, at *1 (M.D. Pa.

Nov. 13, 2023). However, in those cases towing companies were sued for
allegedly towing vehicles on behalf of local governments without proper due
process. Here a towing company is suing a local government for not hiring it

to tow vehicles on that local government’s behalf without proper due process.
As such those cases are the factual inverse of the present case and provide
no useful legal analogy to it. A reasonable attorney reading only the captions
of these cases should have known that they are distinguishable from the

present case and that it is disingenuous to categorize them as part of the
same controversy.
Likewise, Defendant’s motion for sanctions is not premature. As

Defendants point out Third Circuit precedent requires litigants to file their
motions under Rule 11 prior to the entry of a final judgment and “[w]here
appropriate such motions should be filed at an earlier time as soon as
practicable after discovery of the Rule 11 violation.” Mary Ann Pensiero, Inc.

v. Lingle, 847 F. 2d 90, 92 (3d Cir. 1988). See also Barley v. Fox Chase
Cancer Ctr., 54 F. Supp. 3d 396, 401 (E.D. Pa. 2014) (“Given the “safe
harbor” provisions, “a party cannot delay serving its Rule 11 motion until

conclusion of the case.”)
Plaintiff is also not entitled to amend his complaint before the
imposition sanctions because the safe harbor period under Rule 11 has

already expired. See Jackson. v. Rohm & Haas Co., No. CIV.A. 05-4988,
2006 WL 680933, at *4 (E.D. Pa. Mar. 9, 2006), aff’d, 366 F. App’x 342 (3d
Cir. 2010). (“The safer harbor specified in Rule 11 provides an adequately

generous 21-day opportunity for offending parties to repent, and there is no
good reason to go beyond the language of the Rule to enlarge that
opportunity.”) Here Defendants filed their motion for sanctions ahead of the
disposition of their motion to dismiss, which they correctly anticipated would

serve as a final judgment in this case. As such Defendants’ motion for
sanctions was not premature. A reasonable attorney should have known that
given the procedural posture of this case the present motion for sanctions

was timely filed.
As to the assertion that Defendants motion for sanction is an
impermissible motion to strike under Rule 12(f)(2), Defendant’s motion is not
seeking to remove an insufficient defense or scandalous matter but dismiss

Plaintiff’s complaint in its entirety as frivolous. Thus, it is clearly not a motion
to strike and Rule 12(f)(2) is inapplicable. As to the argument Defendants are
trying to stifle Mr. Katsock’s enthusiasm and creativity, the protection of an
attorney’s innovation and industry (to the extent it exists in this Circuit)3 does
not extend to arguments like those advanced here that have absolutely no

chance of success under existing precedent. See Eastway Const. Corp. v.
City of New York, 762 F.2d 243, 254 (2d Cir. 1985) (Rule 11 sanctions do
not stifle an attorney’s enthusiasm or creativity where it is patently clear their

arguments have absolutely no chance of success under existing precedent.)
A reasonable lawyer should have recognized from the onset that Plaintiff’s
alleged injuries do not support a plausible legal claim in federal court and
never wasted his clients’ time and money–not to mention the money of

Pittston Township’s taxpayers—by filing this lawsuit.
Nonetheless, the court does not deem Mr. Katsock’s conduct severe
enough to warrant sanctions. As noted above Rule 11 sanctions are intended

only for exceptional circumstances. While a reasonable investigation should
have revealed to Mr. Katsock that the claims he filed are not supported by
existing law, his pleadings do not necessarily indicate abusive litigation or
misuse of the court’s process. Thus, the court considers dismissal of those

pleadings with prejudice sufficient punishment here. Still since this is not the

3 Plaintiff only cites out of circuit authority to support the argument that
Rule 11 sanctions should be denied where they may stifle the subject
attorney’s enthusiasm.
first time Mr. Katsock has been the subject of a motion for sanctions the court
wants to remind him of his duties under Rule 11.

By the court’s count this is the third time in less than 10 years that a
motion for sanctions has been filed against Mr. Katsock in this court alone.
In both prior instances these motions were denied. See Babyage.com, Inc.

v. Ctr. for Env’t Health, 90 F. Supp. 3d 348, 358 (M.D. Pa. 2015) (Mariani,
J.) (Declining to sanction Mr. Katsock for filing an unsubstantiated Dormant
Commerce Clause claim beyond dismissal of that claim); BNB Hana Bank
Nat’l Ass’n v. Red Mansion LLC, No. 3:14-CV-01664, 2015 WL 9480030, at

*3 (M.D. Pa. Dec. 29, 2015) (Caputo, J.) (Declining to sanction Mr. Katsock
for asserting that Monroe County is not the Middle District of Pennsylvania
where Mr. Katsock acknowledged that he was confused and made a “good-

faith mistake.”)
However, it does not appear that Mr. Katsock has learned from these
mistakes. Declining to award sanctions against him for one frivolous
Dormant Commerce Clause claim was a not license for Mr. Katsock to again

file such a claim. Moreover, in this particular case, Mr. Katsock despite
receiving Defendants’ safe harbor notice and seeing the weight of authority
presented against his arguments, has refused to recognize the frivolousness

of the case. As such the court strongly warns Mr. Katsock to remember his
Rule 11 obligation to “Stop, Think, Investigate and Research” before he files
another case. If Mr. Katsock does not change his behavior and continues to

file frivolous complaints, future courts will have no other choice but to
sanction him and consider referral to the Bar Association for disciplinary
action.

IV. Conclusion
Based on the aforesaid Defendants’ motion for sanctions will be
DENIED but their motion to dismiss will be GRANTED in its entirety.
Plaintiff’s complaint will be DISMISSED with prejudice. An appropriate order

follows.

_ s/ Malachy E. Mannion ___
MALACHY E. MANNION
United States District Judge
DATE: April 10, 2024
23-1617-01

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Source: Frix Law Library, https://www.frixlaw.com/law-library/cases/10414576. Public record. Not legal advice.
