HMS Capital, Inc. v. Lawyers Title Co.

Good Law
118 Cal. App. 4th 204·12 Cal. Rptr. 3d 786·2004 Cal. App. LEXIS 653·2004 Daily Journal DAR 5243·2004 Cal. Daily Op. Serv. 3741
Court of Appeal of CaliforniaApril 30, 2004No. B158008California5,312 words

Opinion

lead Opinion

Aldrich, J.

The issue on appeal is whether the trial court erred in denying an anti-SLAPP motion. 1 The motion contended that a malicious prosecution lawsuit should be stricken. We affirm the order denying the motion in part because the party bringing the malicious lawsuit received a *208 favorable termination on the merits of the underlying lawsuit, irrespective of the voluntary settlement of costs.

FACTUAL AND PROCEDURAL BACKGROUND

1. Introductory facts.

Plaintiff and respondent HMS Capital Inc., a California corporation, (HMS) is a residential mortgage broker specializing in arranging refinancing of home mortgages in California with no points and no-cost loans. Defendant and appellant Lawyers Title Company, a corporation, (Lawyers Title) is in the business of providing title and escrow services for real estate transactions.

In May 1998, HMS and Lawyers Title entered into an oral contract, under which Lawyers Title was to provide title insurance and escrow services to HMS. A few months later, the parties ended their business relationship.

2. The underlying litigation.

On April 9, 1999, Lawyers Title filed suit against HMS (LASC No. BC 208521 (hereafter LASC No. BC 208521)).…

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