In this case, we address the applicable statute of limitations when an attorney is sued for malicious prosecution. Almost 13 months after the resolution in the trial court of Sportsmark Trading, Ltd. v. Roger Cleveland Golf Company, Inc. (Super. Ct. L.A. County, 2007, No. BC365228) (the Sportsmark action), Roger Cleveland Golf Company, Inc. (RCG), the defendant therein, filed a malicious prosecution action against Sportsmark Trading, Ltd. (Sportsmark),
Here, we address the discrete but related issues of accrual of a malicious prosecution cause of action and commencement of the statute of limitations.
Applying these principles, the malicious prosecution action against Attorneys is not time-barred as the statute of limitations was tolled during the seven-month period in which the Sportsmark action was pending on appeal. Vafi, supra, 193 Cal.App.4th 874 did not address this issue. Because section 340.6, subdivision (a) appears to exclude tolling in these circumstances, we respectfully disagree with Vafi and Yee v. Cheung (2013) 220 Cal.App.4th 184 [162 Cal.Rptr.3d 851] (Yee) that section 340.6 is the applicable statute of limitations governing a malicious prosecution action against an attorney. Instead, we conclude the applicable statute of limitations for malicious prosecution is section 335.1, irrespective of whether the party being sued for malicious prosecution is the former adversary (Sportsmark) or the adversary's attorneys (Attorneys).
We further conclude, however, that the trial court properly granted the anti-SLAPP motion. RCG did not establish the probability of prevailing on the merits as it did not make the minimal evidentiary showing of malice. Thus, we affirm the orders granting the anti-SLAPP motion and awarding fees to Attorneys pursuant to section 425.16, subdivision (c)(1).
Attorneys represented Sportsmark, the sole distributor of RCG's products in Hong Kong, Macau, China (not Taiwan), India, Pakistan, and Bangladesh. Sportsmark and RCG entered into a distributorship agreement for a period of three years starting from January 1, 1996, and ending December 31, 1998. The distributorship agreement was renewed in 2000 for a three-year term, and again in 2002 for a four-year term with a modification in the territories to include Hong Kong, Macau and China (not Taiwan) (hereafter, the territories). In November 2005, RCG informed Sportsmark that it was renewing the distributorship agreement in the territories for "a period of one (1) year starting from January 1, 2006 and ending December 31, 2006."
In January 2007, Sportsmark filed a complaint against RCG, alleging causes of action for (1) breach of contract, (2) breach of the implied covenant of good faith and fair dealing, (3) unjust enrichment, (4) declaratory relief regarding distributorship agreement, and (5) declaratory relief regarding trademark.
The complaint alleged Sportsmark acted as the sole distributor of RCG's golf products in the territories and was "instrumental in developing the markets" for RCG's products. The distributorship agreement allegedly was "made, renewed, modified, and extended partly orally, partly in writing and/or partly by course of conduct," and the "parties agreed that the Distributorship Agreement would continue to be renewed unless good cause existed for nonrenewal." In September 2006, RCG allegedly breached the distributorship agreement by notifying Sportsmark that it would not be renewed, "despite the fact that Defendant [RCG] did not have good cause for said nonrenewal." Sportsmark sought a judicial determination of its rights and duties under the distributorship agreement and its rights and duties with respect to the trademark "Cleveland Golf." Specifically, Sportsmark sought a declaration that it "is an owner" of the rights to the "Cleveland Golf" trademark in the territories.
RCG removed the action to the United States District Court. RCG answered the complaint and asserted two trademark counterclaims against Sportsmark. In its first counterclaim, RCG brought a declaratory relief action seeking a "judicial determination of its exclusive rights to the marks" "Cleveland Golf," "Cleveland," and other similar marks owned by Cleveland Golf, including but not limited to, "a determination that Sportsmark has no right to use such marks anywhere in the world" and particularly in the territories covered by the distributorship agreement. The second counterclaim sought injunctive relief, "enjoining Sportsmark from the use of the marks `Cleveland Golf,' `Cleveland,' and other similar and related marks owned by Cleveland Golf" in the territories or anywhere else in the world.
The United States District Court concluded it lacked subject matter jurisdiction and remanded the action to the Los Angeles Superior Court. By motion, the Sportsmark action was transferred to the Orange County Superior Court.
In February 2008, RCG sought a preliminary injunction to enjoin Sportsmark "from registering and using the marks `Cleveland Golf,' `Cleveland,' and other similar marks owned by Cleveland Golf in The People's Republic of China, Hong Kong, Macau ... or anywhere else in the world, pending the outcome of this action on the merits." After commencing the Sportsmark action, Sportsmark filed an application in Hong Kong to register the trademark "Cleveland Golf." Sportsmark also registered the trademark "Cleveland Golf" in Macau.
The trial court granted the preliminary injunction. The written ruling stated: "The Court fails to see where Sportsmark gets the Chutzpah to claim it can register Cleveland's name. As a distributor, Sportsmark cannot appropriate Cleveland's trademark. Whether or not the distributor agreement was terminated properly does not affect the trademark issue." The order and preliminary injunction directed Sportsmark to withdraw, cancel, or abandon its trademark application in Hong Kong and trademark registration in Macau, or anywhere else in the world for the mark "Cleveland Golf" or "Cleveland." The preliminary injunction, however, did not prohibit Sportsmark from selling its remaining Cleveland Golf inventory.
In October 2009, on the eve of the scheduled trial date, Sportsmark dismissed its fifth cause of action for declaratory relief regarding the "Cleveland Golf" trademark without prejudice "in order to avoid further litigation expenses in connection with that cause of action and simplify the trial." Attorney Loeb's letter to RCG's counsel further stated: "[P]lease be advised that Sportsmark hereby disclaims any interest in the trademark `Cleveland Golf'."
The trial was postponed, and RCG moved for summary judgment on the remaining contract claims, and its two trademark counterclaims for declaratory and injunctive relief. The trial court denied the motion. The tentative ruling, which became the final ruling of the court, described the separate statement as "defective" because it "merely recites a partial history of the parties' written agreements, but includes no facts refuting the complaint's allegations of an oral contract." The trial court concluded that RCG did not meet its burden under section 437c, subdivision (p)(2), and therefore the burden never shifted to Sportsmark. The trial court also concluded RCG's trademark counterclaims were improperly asserted in its verified answer. The
In a bifurcated proceeding, the trial court held a bench trial on RCG's trademark counterclaims for declatory and injunctive relief. On April 9, 2010, the trial court granted a permanent injunction, restraining Sportsmark from registering or using RCG's trademarks in the "People's Republic of China, Hong Kong, Macau (collectively, the `Territories'), or in the United States of America, or anywhere else in the world." The trial court also concluded RCG suffered no harm because Sportsmark did not use any of RCG's trademarks in an "infringing manner."
Before the jury trial began, Sportsmark dismissed its declaratory relief cause of action seeking a judicial determination that RCG had an obligation to renew the distributorship agreement. Thereafter, trial commenced on the remaining causes of action for breach of contract, breach of the implied covenant, and unjust enrichment.
During trial, Sportsmark, through its principal, testified that the company received notice of the one-year extension of the distributorship agreement, and did not receive any writing from RCG confirming an oral agreement of another two- or three-year extension. The evidence established that the agent who allegedly made the oral promise of an extension did not have authority to do so.
RCG moved for nonsuit, contending the evidence established no oral contract to renew the distributorship agreement, any oral contract to renew the distributorship agreement would be barred by the statute of frauds because it could not be completed in one year, and parol evidence was inadmissible to contradict the terms of the one-year extension. RCG also moved for nonsuit of the unjust enrichment claim on the ground that unjust enrichment is a remedy and cannot be maintained when the plaintiff alleges a breach of contract.
Sportsmark dismissed its claim for unjust enrichment. The trial court granted the motion for nonsuit. On April 26, 2010, the trial court signed a written order granting nonsuit and dismissing the complaint.
On June 21, 2010, Sportsmark filed a notice of appeal. The appeal was dismissed on February 2, 2011, and the remittitur issued on the same day.
On May 24, 2011, RCG filed a malicious prosecution complaint against Sportsmark and Attorneys. The complaint sets forth the procedural history of the Sportsmark action and alleges Sportsmark and Attorneys "maliciously filed and continued to prosecute the underlying proceeding without probable cause as no reasonable party, entity or attorney would have recognized or believed that Sportsmark possessed a legally tenable claim against Cleveland Golf with respect to either (1) the ownership of its registered marks or (2) the clearly stated expiration date of the written distributorship agreement." The complaint further alleges that Attorneys should have been aware of Sportsmark's false assertions and legally untenable claims at the time the underlying action was filed and throughout the course of the litigation, and nevertheless continued to prosecute the action. Attorney Smith allegedly "admitted to Cleveland Golf's legal counsel that he and Sportsmark knew that there was no legal or factual basis for the underlying lawsuit but that all he [Marc Smith and the other defendants herein] had to do [to collect from Cleveland Golf] was `get the case to a jury.'"
Attorneys filed an anti-SLAPP motion, contending the malicious prosecution complaint was time-barred under the one-year limitations period in section 340.6, subdivision (a), and the prescriptive period was not tolled during the pendency of the appeal from the judgment in the Sportsmark action. Attorneys also contended that RCG could not establish the probability of prevailing on the merits of its malicious prosecution action, focusing on the elements of lack of probable cause and malice.
The trial court granted the special motion to strike on the ground that the malicious prosecution complaint was time-barred. As the prevailing party on the special motion to strike, Attorneys were awarded $47,036.45 in fees.
RCG appeals from the order granting the anti-SLAPP motion. Both parties appeal from the attorney fees order.
On appeal, RCG presented the issue as whether a malicious prosecution cause of action has accrued during the pendency of the appeal even if section
Gibbs v. Haight, Dickson, Brown & Bonesteel (1986) 183 Cal.App.3d 716 [228 Cal.Rptr. 398] (Gibbs) adopted an accrual rule during the pendency of an appeal taken from a judgment that constitutes a favorable termination of the prior action. (Id. at pp. 721-722.) Based upon the "last element" to complete the cause of action, Gibbs concluded the statute of limitations on a malicious prosecution cause of action commences to run upon entry of judgment in the prior action and continues to run to the date of filing the notice of appeal. (Id. at p. 722.) The filing of an appeal renders the malicious prosecution action premature. The statute of limitations is tolled and recommences to run when the appellate process has been exhausted. (Ibid.)
Rare Coin, supra, 202 Cal.App.3d 330, which refined the Gibbs rule, concluded the appellate process is exhausted when the remittitur issues and jurisdiction is revested in the superior court. (Id. at pp. 335-337.) Underlying the start/stop computation in Gibbs and Rare Coin is the well-settled legal principle that the statute of limitations cannot run during the period in which an element of a cause of action cannot be truthfully alleged. The Gibbs and Rare Coin computation remains good law. (Drummond v. Desmarais, supra, 176 Cal.App.4th at pp. 457-458; Feld v. Western Land & Development Co. (1992) 2 Cal.App.4th 1328, 1334-1336 [4 Cal.Rptr.2d 23].)
A cause of action for legal malpractice accrues when the plaintiff has suffered "actual injury," an issue first discussed in Budd v. Nixen (1971) 6 Cal.3d 195, 200-201 [98 Cal.Rptr. 849, 491 P.2d 433], which the Legislature later codified in section 340.6, subdivision (a)(1). (Laird v. Blacker, supra, 2 Cal.4th at pp. 611-612; 3 Mallen & Smith, Legal Malpractice (2014 ed.) Statutes of Limitations, § 23.11, pp. 439-441 (hereafter, Mallen & Smith).) The Laird court rejected the contention that "accrual should be tolled" until resolution of the appeal because appellate review "may correct judicial error, and thus reduce the client's damages, [but] an appeal does not necessarily exonerate the attorney ...." (Laird v. Blacker, supra, at pp. 615, 614.)
In Jordache Enterprises, Inc. v. Brobeck, Phleger & Harrison (1998) 18 Cal.4th 739 [76 Cal.Rptr.2d 749, 958 P.2d 1062], the court reiterated that "[a]ctual injury occurs when the client suffers any loss or injury legally cognizable as damages in a legal malpractice action based on the asserted errors or omissions. [Citations.]" (Id. at p. 743; see id. at pp. 751-752.) This accrual rule of actual injury is the last element of a legal malpractice cause of action and, as we explain, is not applicable to a malicious prosecution cause of action.
Here, applying the Gibbs/Rare Coin rule, any claim RCG had for malicious prosecution accrued on April 26, 2010, the day the trial court entered judgment in RCG's favor.
Attorneys contend that in a malicious prosecution action against an attorney, we can no longer apply the accrual rule established in Gibbs and Rare Coin because the tolling provisions in section 340.6, subdivision (a) are exclusive. In support of this contention, they rely on Vafi, supra, 193 Cal.App.4th 874 and Yee, supra, 220 Cal.App.4th 184, which held section 340.6, subdivision (a) applies to a malicious prosecution action against an attorney. Neither Vafi nor Yee addressed the issue here, that is, accrual of a malicious prosecution action and the tolling of the statute of limitations during the pendency of an appeal taken from a judgment that constitutes a favorable termination of the prior action.
Vafi, supra, 193 Cal.App.4th 874, concluded the one-year limitation period in section 340.6, subdivision (a) applies to all actions, except those for actual fraud, brought against an attorney for wrongful acts or omissions that arise in the performance of professional services. (Vafi, supra, at p. 881.) Relying on the plain and unambiguous statutory language, the court noted the absence of any language exempting malicious prosecution causes of action against attorneys or limiting section 340.6, subdivision (a) to clients or former clients. (Vafi, supra, at pp. 881-882.) Further, Vafi recognized courts have consistently applied section 340.6, subdivision (a) to various tort and contract actions arising from an attorney's performance of professional services, not just professional negligence. (Vafi, supra, at pp. 882-883.) Applying the rule that a specific statute of limitations takes precedence over a general one, the Vafi court held that section 340.6, subdivision (a) overrides the catchall statute of section 335.1. (Vafi, supra, at pp. 880-881.)
Yee, supra, 220 Cal.App.4th 184, independently considered the question of whether section 340.6, subdivision (a) applies to a malicious prosecution action against an attorney. (Yee, supra, at p. 193.) The court agreed with Vafi. (Yee, supra, at pp. 194-197.) The Yee court focused on the plain statutory language, noting broadly worded phrases in the statute, such as "wrongful act or omission" instead of "professional negligence," and "plaintiff" instead of
While the Vafi and Yee courts find no ambiguity in the plain language of section 340.6, subdivision (a), we do.
The Vafi and Yee courts both cited Southland Mechanical Constructors Corp. v. Nixen (1981) 119 Cal.App.3d 417 [173 Cal.Rptr. 917], disapproved
Next, the absence of the word "client" in section 340.6, subdivision (a), and the use of the word "plaintiff" do not clearly indicate, as the Vafi and Yee courts concluded, that the Legislature meant to include third party actions against attorneys for malicious prosecution. (Yee, supra, 220 Cal.App.4th at p. 195; Vafi, supra, 193 Cal.App.4th at p. 882.) The tolling provisions in section 340.6, subdivision (a)(1) through (3) refer to "plaintiff" but mean "client." In subdivision (a)(1) the tolling provision applies if the plaintiff has not sustained "actual injury." The "actual injury" accrual rule, as noted above, is derived from the holding in Budd v. Nixen, supra, 6 Cal.3d 195, and applies to legal malpractice actions. (Id. at pp. 199, 200-201.) The continuous representation accrual rule in subdivision (a)(2) of section 340.6 uses "plaintiff" when it could only mean "client." And, concealment of a wrongful act or omission, in subdivision (a)(3) applies in the context of the attorney-client relationship in which the attorney conceals from his or her client the wrongful act or omission that constitutes a cause of action for legal malpractice. (3 Mallen & Smith, supra, Statutes of Limitations, § 23.14, pp. 553-559.)
Assuming the tolling provisions in section 340.6, subdivisions (a)(1) through (3) only apply to clients, the Legislature also used "plaintiff" elsewhere in section 340.6, subdivision (a) when setting forth the delayed discovery accrual rule. Section 340.6, subdivision (a) uses the phrase, "after
Our reading of the statutory language in section 340.6 differs from the Vafi and Yee courts, and so we also consider the statute's purpose, legislative history, and public policy considerations. These additional factors support our conclusion that the Legislature did not intend section 340.6, subdivision (a) to apply to actions brought against an adversary's attorney arising from the litigation that is the basis of the malicious prosecution claim.
As the Yee court notes, one of the Legislature's stated purposes in enacting section 340.6 was to attempt to reduce the costs of legal malpractice insurance.
The legislative history explains why the Legislature used "wrongful act or omission" in section 340.6 instead of "legal malpractice" or "professional negligence." Section 340.6 was a product of a bill originally introduced by Assemblyman Willie L. Brown, Jr. (Assem. Bill No. 298 (1977-1978 Reg. Sess.) as introduced Jan. 25, 1977.) As originally drafted, Assembly Bill No. 298 proposed a statute of limitations "[i]n any action for damages against an attorney based upon the attorney's alleged professional negligence."
Apparently, members of the Assembly Judiciary Committee reviewed and considered the article by Ronald E. Mallen, Panacea or Pandora's Box? A Statute of Limitations for Lawyers (1977) 52 State Bar J. 22 (hereafter, Mallen, Panacea), in which Mallen proposed a legal malpractice statute of limitations. (See Southland Mechanical Constructors Corp. v. Nixen, supra, 119 Cal.App.3d at p. 428; see also Samuels v. Mix (1999) 22 Cal.4th 1, 12-13 [91 Cal.Rptr.2d 273, 989 P.2d 701].) Mallen's proposal used the phrase "`[a]n action against an attorney for a wrongful act or omission.'" (Mallen, Panacea, supra, 52 State Bar J. at p. 24.) Mallen suggested this statutory language because "`malpractice' is not in itself a word of precise definition. Legal malpractice is best stated in terms of the actual wrong: a wrongful act or omission occurring in the rendition of professional services. Thus, the statute proposed here does not include wrongs where the defendant was not acting as an attorney. Nor, should the statute include acts of actual fraud ...." (Mallen, Panacea, supra, 52 State Bar J. at p. 77; see 3 Mallen & Smith, supra, Statutes of Limitations, § 23.8, p. 394.)
The Assembly incorporated Mallen's proposed statutory language of a "wrongful act or omission," and all the subsequent legislative material that we have reviewed referred to what became section 340.6 as a statute of limitations for legal malpractice. (See, e.g., Assem. Com. on Judiciary, Digest of Assem. Bill No. 298 (1977-1978 Reg. Sess.) as amended May 9, 1977.) A letter to then Governor Edmund G. Brown, Jr., from the sponsor of the bill stated: "This bill creates a new statute of limitations for legal malpractice actions." (Assemblyman Willie L. Brown, Jr., letter to Governor Edmund G. Brown, Jr., Aug. 31, 1977, p. 1.) The bill would "bring legal malpractice statutory limits more in line with current limitations on medical malpractice
An enrolled bill report submitted to the Governor reflected this legislative intent. (See Elsner v. Uveges (2004) 34 Cal.4th 915, 934, fn. 19 [22 Cal.Rptr.3d 530, 102 P.3d 915] [enrolled bill reports prepared by a responsible agency contemporaneous with passage and before signing are instructive on matters of legislative intent].) As explained, the bill "would provide a specific statute of limitations for legal malpractice actions which basically parallels the limits imposed on medical malpractice suits ...." (Dept. of Legal Affairs, Enrolled Bill Rep. on Assem. Bill No. 298 (1977-1978 Reg. Sess.) prepared for Governor Brown (Sep. 15, 1977).) In section 340.5, subdivision (2), the statute of limitations for professional negligence of health care providers, defines "professional negligence" as a "negligent act or omission to act by a health care provider in the rendering of professional services."
Our review of the legislative history indicates the Legislature intended to create a specially tailored statute of limitations for legal malpractice actions, just as it had for medical malpractice. In addition to referring to "legal malpractice," the Legislature incorporated tolling provisions only applicable to legal malpractice claims. (Sen. Com. on Judiciary, Rep. on Assem. Bill No. 298 (1977-1978 Reg. Sess.) as amended May 9, 1977, p. 2.) There is no indication the Legislature even considered malicious prosecution actions against attorneys when enacting the legislation that became section 340.6.
Attorneys remind us that our analysis should be tempered by the traditional characterization of malicious prosecution as a "disfavored" cause of action. But this "does not warrant abridging" the traditional right of action. (Ray v. First Federal Bank, supra, 61 Cal.App.4th at p. 320.)
Yee, supra, 220 Cal.App.4th 184, reasoned the "disfavor for malicious prosecution actions could apply even more so to malicious prosecution claims against an attorney, who, by the nature of his or her profession, is more likely to be involved in litigation than the average plaintiff, and thus, may be more likely to be subjected to malicious prosecution claims." (Id. at p. 196.) Thus, the Yee court did not find it unreasonable that its construction of section 340.6, subdivision (a) resulted in two separate classes of malicious prosecution defendants arising from their participation in the same litigation. (220 Cal.App.4th at p. 197.)
RCG claims it can establish all three elements of liability, that is, favorable termination on the merits,
Generally, malice is established by circumstantial evidence and inferences drawn from the evidence. (Paulus v. Bob Lynch Ford, Inc. (2006) 139 Cal.App.4th 659,
As noted, malice is present when proceedings are initiated for an improper purpose. (Sierra Club Foundation v. Graham (1999) 72 Cal.App.4th 1135, 1157 [85 Cal.Rptr.2d 726].) "Suits with the hallmark of an improper purpose" include "those in which: `"... (1) the person initiating them does not believe that his claim may be held valid; (2) the proceedings are begun primarily because of hostility or ill will; (3) the proceedings are initiated solely for the purpose of depriving the person against whom they are initiated of a beneficial use of his property; (4) the proceedings are initiated for the purpose of forcing a settlement which has no relation to the merits of the claim."' [Citation.]" (Ibid.) As shall be discussed, while RCG established the element of lack of probable cause, raising an inference of malice, it failed to provide additional evidence that the Sportsmark action was initiated for an improper purpose to meet its minimal burden to show malice.
Whether a reasonable attorney would have thought the claim legally tenable is a legal issue. (Franklin Mint Co. v. Manatt, Phelps & Phillips, LLP (2010) 184 Cal.App.4th 313, 333 [109 Cal.Rptr.3d 143].) This legal question is to be determined on the basis of whether as an objective matter the prior action was legally tenable. (Ibid.)
The malicious prosecution complaint alleges that Sportsmark and Attorneys knew that the alleged "`two year oral distributorship agreement' was legally barred and unenforceable on a number of obvious legal grounds including inter alia the Statute of Frauds and the Parol Evidence Rule."
The trial court granted nonsuit on the contract causes of action asserted in the Sportsmark action. The granting of nonsuit only establishes that Sportsmark could not marshal the necessary evidence to prevail on their contract theories, but proof of lack of probable cause requires more. (See Slaney v. Ranger Ins. Co. (2004) 115 Cal.App.4th 306, 320 [8 Cal.Rptr.3d 915].)
The malicious prosecution complaint alleges Attorneys asserted a legally untenable claim in the Sportsmark action seeking a determination that Sportsmark is the owner of the trademark rights to "Cleveland Golf" in the territories. The complaint further alleges that Sportsmark registered the "Cleveland Golf" trademarks as its own with full knowledge of RCG's ownership and use.
Attorneys counter that Sportsmark's rights with respect to the trademark "Cleveland Golf" in the territories are governed by the applicable trademark laws of those foreign territories, and not California law. In raising this argument, Attorneys disavow a statement made to the trial court that "neither side is going to argue that the foreign law applies to either the trademark at issue or the contract at issue." On the trademark declaratory relief action, RCG met its minimal burden on the lack of probable cause element as a matter of law.
As noted, the malice element focuses on Attorneys' and Sportsmark's subjective intent in initiating the Sportsmark action. (HMS Capital, Inc. v. Lawyers Title Co. (2004) 118 Cal.App.4th 204, 218 [12 Cal.Rptr.3d 786].)
RCG contends that Attorneys, on behalf of Sportsmark, initiated the lawsuit for the improper purpose of forcing a settlement that had no relation to the merits of the complaint. As to Attorney Loeb, RCG submitted no
We conclude that based upon Smith's statement, RCG did not meet its minimal burden to show Attorneys acted with malice in filing or continuing to litigate the Sportsmark action for an improper purpose. These comments were typical of comments attorneys make to one another during the course of litigation and are distinguishable from the attorney's comments in HMS Capital, Inc. v. Lawyers Title Co., supra, 118 Cal.App.4th 204. In that case, the attorney insisted on payment of $25,000 to dismiss the case, irrespective of the facts. (Id. at p. 219.) Therefore, no inference of malice can be drawn from Smith's statement even when viewed in the light most favorable to RCG. We summarily reject RCG's characterization of Smith's statement as evidence that Attorneys "prosecuted Sportsmark's contract claims to extort a settlement even though it knew the claims had no merit."
We also have reviewed the additional evidence related to Sportsmark's principal and conclude that this evidence does not support an inference of malice. Thus, RCG did not meet the minimal burden to present a sufficient prima facie showing of malice to sustain a favorable judgment on the malicious prosecution complaint. The trial court did not err in granting the anti-SLAPP motion.
Because we conclude the anti-SLAPP motion was properly granted, we also conclude the trial court did not err in awarding fees to Attorneys. (§ 425.16, subd. (c)(1).)
The order granting the special motion to strike brought pursuant to Code of Civil Procedure section 425.16, subdivision (b)(1) is affirmed. The order awarding attorney fees to defendants Krane & Smith, LLC, Marc Smith, and Ralph C. Loeb pursuant to Code of Civil Procedure section 425.16, subdivision (c)(1) is affirmed. The parties are to bear their respective costs on appeal.
Klein, P. J., and Croskey, J., concurred.