Warner

Plaintiffs appeal from an adverse judgment in an action for malicious prosecution.

In March of 1958 plaintiffs Malcolm S. Warner and Mary V. Warner, his wife, owned a jewelry business operated under the name of M. Sterling Corporation in Los Angeles, California. Mr. and Mrs. Warner were in financial difficulties. Upon hearing of their circumstances, a friend, Mrs. Mildred Cabany, stated she was willing to lend the Warners some money. In addition she arranged a meeting for them with defendant W. J. 0 ’Connor who was also interested in lending money. The parties met at the Warners’ home on March 28, 1958, and upon completion of negotiations that morning defendant O’Connor and Mrs. Cabany gave checks totaling $3,000 to the Warners who jointly and personally executed two promissory notes, one note to each of them for $1,750, since it had been previously decided there would be a $500 bonus for making the loans. Each note provided: “As collateral security for the payment of this note and interest as stated therein and expenses which may accrue thereon . . . have deposited . . . the following personal property of which we are sole owner’s [sic] ... to wit: Diamonds as listed in attached…