Brennan

I dissent.

In 1992, Tremco Incorporated brought an action in the superior court against Walter M. Brennan, a former employee who went to work for one of its competitors, for breach of contract, for the torts of conversion, misappropriation of trade secrets, intentional interference with prospective economic advantage, fraud, and unfair competition, and, later, for declaratory relief—an action entitled Tremco v. Brennan. For the claims other than that for declaratory relief, Tremco sought both compensatory and punitive damages in an unspecified amount. Tremco was represented by counsel; Brennan was represented as well.

In 1993, Tremco dismissed its claim for fraud without prejudice.

Later in 1993, the superior court ordered Tremco and Brennan to judicial arbitration. The arbitrator resolved all of the then remaining claims in Brennan’s favor. He then made an arbitration award accordingly. Tremco demanded a trial de novo.

In 1995, the superior court summarily adjudicated Tremco’s claims for conversion and misappropriation of trade secrets in Brennan’s favor.

In 1996, Tremco and Brennan entered into an arbitration agreement. As recited, in pertinent part, by the superior court…

We granted review to decide whether a person may sue for the malicious prosecution of an action that the parties resolved through contractual arbitration. Because a contractual arbitration proceeding does not result in a favorable termination of a prior action, a necessary element of malicious prosecution, we conclude a person may not do so.

I. The Facts and Procedural History

In 1992, Tremco Incorporated (Tremco) sued a former employee, Walter M. Brennan, after he went to work for one of Tremco’s competitors. The *313 complaint alleged breach of contract, conversion, misappropriation of trade secrets, intentional interference with prospective economic advantage, fraud, and unfair competition. Brennan obtained summary adjudication of some of the causes of action. Thereafter, in 1996, the parties agreed to arbitrate Tremco’s remaining claims. The trial court orally summarized the agreement: “With regard to this particular matter, the parties have stipulated to a[d]judicate the matter by binding arbitration. That, of course, means a waiver of any trial de novo, also any right of appeal.” A subsequent written agreement provided: “It is stipulated and agreed by the parties…