Havilah Real Property Services, LLC v. Early

88 A.3d 875, 216 Md. App. 613, 2014 WL 1258028, 2014 Md. App. LEXIS 31
CourtCourt of Special Appeals of Maryland
DecidedMarch 27, 2014
Docket0051/13
StatusPublished
Cited by16 cases

This text of 88 A.3d 875 (Havilah Real Property Services, LLC v. Early) is published on Counsel Stack Legal Research, covering Court of Special Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Havilah Real Property Services, LLC v. Early, 88 A.3d 875, 216 Md. App. 613, 2014 WL 1258028, 2014 Md. App. LEXIS 31 (Md. Ct. App. 2014).

Opinion

ZARNOCH, J.

Appellant Havilah Real Property Services, LLC (“Havilah”) is a Maryland limited liability company engaged in the business of buying, selling, and owning real estate. Havilah filed a complaint against attorney Ronald Early and his firm, Lerch, Early & Brewer, Chtd., alleging that Early and the firm (collectively, “the Attorneys”) conspired with one of their former clients to file a frivolous lawsuit against Havilah, thereby engaging in malicious use of process. The Circuit Court for Montgomery County dismissed Havilah’s complaint with prejudice, which Havilah now appeals. For the following reasons, we affirm the judgment of the circuit court.

FACTS AND LEGAL PROCEEDINGS

This case is best understood as a story of three separate but related cases.

*618 First, in 2007, Vicky Lynn Karen and VLK, LLC 1 (‘VLK”) retained the Attorneys to represent them. On November 9, 2007, the Attorneys filed a complaint 2 in the Circuit Court for Montgomery County on behalf of VLK against (1) Lamar Carlson, then a member of VLK with whom Karen was formerly romantically involved; (2) Joan Alderman, the principal of Havilah and Carlson’s then-current romantic partner; (3) and Havilah (the “Maryland action”). The essence of the complaint was that Havilah, Carlson, and Alderman had tortiously interfered with VLK’s business prospects by purchasing 48 properties in the District of Columbia. The complaint alleged various counts of fraud, breach of contract, breach of fiduciary duty, and interference with contractual relations, among other counts. Within a week of filing the complaint, the Attorneys filed 48 lis pendens 3 on D.C. properties owned by Havilah. Havilah sought to terminate the case via motions several times, though all of its attempts were denied: (1) a motion for summary judgment filed on December 15, 2008 and argued at a hearing on January 21, 2009; (2) a motion for judgment filed on February 19; and (3) a renewed motion for judgment filed on February 25. 4 A fourteen-day jury trial conducted from February 9 to February 27, 2009, resulted in a $10,000 jury verdict on March 10, for VLK against Carlson. 5 Havilah was not liable on any of the counts.

*619 While the Maryland action was pending, Havilah and Aider-man filed a complaint 6 against VLK and Karen in the Superi- or Court for the District of Columbia on March 25, 2008. They alleged claims of tortious interference with prospective economic advantage and malicious prosecution. The court later dismissed the malicious prosecution claim, holding that the filing of a lis pendens did not constitute a special injury required to sustain the claim. A twelve-day jury trial, conducted from January 9 to January 25, 2012, resulted in a verdict for Havilah and Alderman in the amount of $602,942, plus costs and interest, against VLK and Karen. Both sides filed cross-appeals 7 to the D.C. Court of Appeals, which are still pending as of this writing.

Finally, we come to the case before us. On May 25, 2012, Havilah filed a complaint in the Circuit Court for Montgomery County against the Attorneys. The complaint alleged that the Attorneys “knew that there was no probable cause to support” 31 of the 48 lis pendens the Attorneys had filed on Havilahowned properties in the Maryland action. Havilah alleged that Karen and VLK’s

intent was to tortiously and maliciously interfere with Havilah’s business relationships in order to punish Karen’s ex-boyfriend, Carlson, the then-current boyfriend of Havilah’s principal, [Alderman] ... and/or, at a minimum, to use Havilah and its properties as leverage to achieve their goals with respect to Carlson, in reckless disregard of the damages those unlawful actions were likely to cause Havilah.

On October 19, the circuit court granted the Attorneys’ motion to dismiss the complaint but also granted Havilah leave to amend.

*620 Havilah’s amended complaint, filed October 31, included additional allegations as to what the Attorneys knew at the time the 31 lis pendens were filed in the Maryland action. For example, Havilah alleged that the Attorneys knew that “Carlson was Karen’s business partner and ex-lover” and that “Karen remained obsessed with Carlson, and clandestinely observed him and Alderman on occasion.” Havilah also alleged that the Attorneys knew that YLK “had no funds to purchase any of the 31 properties and was no longer actively engaged in acquiring real estate.” Instead, according to Havilah, VLK and Karen sought “to stop Havilah from selling the properties so they could extort money from Havilah and thereby share in the profits despite the fact that they had done no work that would justify any payment.” Ultimately, according to Havilah, the Attorneys “expressed no hesitation and willingly agreed to participate in, and further, Karen’s and VLK’s malicious and tortious goal to harm Havilah and its business interests, and thereby punish Carlson and Aider-man.” Havilah sought at least $980,301 in compensatory damages.

The Attorneys filed a motion to dismiss, or, in the alternative, for summary judgment on November 28, which the circuit court considered at a hearing on February 27, 2013. At the beginning of the hearing, the judge stated “I believe that I actually remember parts of this case, certainly not much of it, but I remember this of Ms. Karen’s case. And I remember that they were buying properties there in Anacostia near the stadium____[B]ut I do have some familiarity with the underlying case here in the State of Maryland. And I actually have some memory of it.” 8 The Attorneys emphasized that Havilah could not establish that there was a lack of probable cause to initiate the Maryland action because the circuit court had “denied three dispositive motions in that lawsuit.” They also argued that the complaint was deficient *621 because there was “no proof of actual malice ... [and] no proof of independent harm.” Havilah conceded that it had not alleged actual malice in the complaint and argued that “the malice is imputed by acting outside the box, knowing the facts, and taking actions not justified by the facts.”

In an oral ruling, the court found that
[T]he court has considered the defendant’s motion to dismiss the amended complaint. And there is only that one count of conspiracy to commit a malicious prosecution. The court is not satisfied that there’s been the appropriate showing in the pleadings to justify that matter going forward. And that’s kind of by admission of counsel....

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Charles v. Charles
Court of Special Appeals of Maryland, 2025
Wilson v. Detweiler
D. Maryland, 2021
Porubsky v. Long
Court of Appeals of Kansas, 2021
Magnas v. Perlman
D. Maryland, 2021
Pinner v. Pinner
201 A.3d 26 (Court of Special Appeals of Maryland, 2019)
Castruccio v. Estate of Castruccio
196 A.3d 912 (Court of Special Appeals of Maryland, 2018)
Castruccio v. Castruccio
Court of Special Appeals of Maryland, 2018
Christian v. Maternal-Fetal Med. Assoc.
183 A.3d 762 (Court of Appeals of Maryland, 2018)
Kaye v. Wilson-Gaskins
135 A.3d 892 (Court of Special Appeals of Maryland, 2016)
Lichaj v. Sconyers
Connecticut Appellate Court, 2016
Maryland Board of Physicians v. Geier
123 A.3d 601 (Court of Special Appeals of Maryland, 2015)
Huggins v. Huggins & Harrison, Inc.
103 A.3d 1133 (Court of Special Appeals of Maryland, 2014)

Cite This Page — Counsel Stack

Bluebook (online)
88 A.3d 875, 216 Md. App. 613, 2014 WL 1258028, 2014 Md. App. LEXIS 31, Counsel Stack Legal Research, https://law.counselstack.com/opinion/havilah-real-property-services-llc-v-early-mdctspecapp-2014.