Cilley

This diversity case traces back to 2000 when gifts were sought to be made by Elsie Terchen to Greensprings Baptist Christian Fellowship Trust (“Greensprings”) and also to two daughters of Barbara and Robert Miller. Conveyances of certain properties were made to Greensprings, but the planned gift of a house to the Miller daughters was not accomplished prior to Terchen’s death on December 10, 2000. In the years that followed, the Millers and Greensprings became adversaries with respect to the Millers’ claim that they were entitled to $500,000 from Greensprings. The details of the ensuing controversy have no bearing on the issues to be addressed in this opinion. Suffice it to say that the first stage of the current litigation commenced in 2007 in the form of a suit commenced by the Millers against Greensprings in a California state court and then removed by Greensprings to the United States District Court for the Northern District of California. Miller v. Greensprings Baptist Christian Fellowship Trust, No. 07-cv-4776 (N.D.Cal.2008). The Miller suit was dismissed.

Thereupon Greensprings brought the current suit — a suit for malicious prosecution — against the Millers and…