Lane v. Bell

228 Cal. Rptr. 3d 605, 20 Cal. App. 5th 61
CourtCalifornia Court of Appeal, 5th District
DecidedJanuary 31, 2018
DocketD071312
StatusPublished
Cited by22 cases

This text of 228 Cal. Rptr. 3d 605 (Lane v. Bell) is published on Counsel Stack Legal Research, covering California Court of Appeal, 5th District primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lane v. Bell, 228 Cal. Rptr. 3d 605, 20 Cal. App. 5th 61 (Cal. Ct. App. 2018).

Opinion

DATO, J.

*63To prevail in a malicious prosecution action under California law, a malicious prosecution plaintiff (the defendant in the underlying action)

*64must show that (1) the plaintiff in the underlying action pursued a claim with subjective malice, (2) the claim was brought without objective probable cause, and (3) the underlying action was terminated on the merits in favor of the defendant. The issue in this case is a seemingly simple one. The plaintiff in the underlying action brought multiple claims and lost many, perhaps most of them, but prevailed on at least one. Can the defendant bring a malicious prosecution action by showing that some of the claims were malicious and lacked probable cause, but without showing a "favorable termination" of the entire underlying action?

In many respects, the answer likewise appears simple. In its most recent discussion of the issue, the California Supreme Court emphasized that "lack of probable cause" and "favorable termination" were distinct requirements in a malicious prosecution action: " '[T]hat a malicious prosecution suit may be maintained where only one of several claims in the prior action lacked probable cause [citation] does not alter the rule there must first be a favorable termination of the entire action.' " ( Crowley v. Katleman (1994) 8 Cal.4th 666, 686, 34 Cal.Rptr.2d 386, 881 P.2d 1083 ( Crowley ).) Thus, if the defendant in the underlying action prevails on all of the plaintiff's claims, he or she may successfully sue for malicious prosecution if any one of those claims was subjectively malicious and objectively unreasonable. But if the underlying plaintiff succeeds on any of his or her claims, the favorable termination requirement is unsatisfied and the malicious prosecution action cannot be maintained.

In this case, John and Denise Lane jointly owned a piece of rural property together with Denise's mother, Joan Bell. In 2011, the Lanes filed a lawsuit (the property action) against Bell arising out of disputes over the property. (See Lane v. Bell (Jan. 8, 2015, D064651) 2015 WL 122178 [2015 Cal.App. Unpub. Lexis 78] ( Lane I ).) Bell cross-complained, seeking among other things a declaration of the extent of her interest in the property and an order for partition. The Lanes prevailed on most of Bell's claims, but a judgment was ultimately entered in Bell's favor valuing her interest in the property and granting her claim for partition. Because Bell prevailed on at least one of her claims, the *607seemingly simple answer-the conclusion reached by the trial court-is that the Lanes cannot demonstrate a "favorable termination" of the underlying action, which is fatal to their malicious prosecution action.

What appears to be simple becomes more complicated because the Crowley discussion is technically dicta; in Crowley there was no question that the underlying action in its entirety had terminated favorably to the defendant. ( Crowley , supra , 8 Cal.4th at p. 676, 34 Cal.Rptr.2d 386, 881 P.2d 1083.) Further muddying the waters is a 60-year-old Supreme Court opinion relied on heavily by the Lanes- Albertson v. Raboff (1956) 46 Cal.2d 375, 295 P.2d 405 ( Albertson )-which *65seems to hold that, at least in certain cases, a malicious prosecution plaintiff can satisfy the "favorable termination" element by succeeding on some causes of action in the underlying case, even though a partial judgment was entered against him or her on a different claim. ( Id. at p. 382, 295 P.2d 405.) The Lanes thus suggest we should decline to apply the dicta of Crowley in favor of their reading of Albertson 's holding.

To do so, however, would require that we ignore two relatively recent decisions by this court that follow Crowley on this very point, albeit without recognizing the potential conflict with Albertson . More importantly, the rule urged by the Lanes would conflate two separate elements in a malicious prosecution claim, effectively eliminating any requirement that the entire underlying action terminate in the defendant's favor.

In the absence of further guidance from the Supreme Court, we believe Crowley correctly addresses the issue, and the trial court properly relied on Crowley in granting summary judgment. Accordingly, we affirm.

FACTUAL AND PROCEDURAL BACKGROUND

1. The Underlying Dispute and the Property Action

In 1987, John Lane acquired the property and ultimately conveyed an undivided one-half interest to Bell. Concurrently with that transfer, the Lanes and Bell entered into a Joint Venture Agreement (JVA) defining the parties' anticipated rights and responsibilities. Under the JVA, the parties would seek approval for a lot split which, if successful, would leave Bell with the upper lot and the Lanes with the lower lot. The Lanes were responsible for processing the lot split application, and the parties would equally divide the associated costs and common expenses for the land. The parties also agreed that if the lot split was denied, each would have a right of first refusal to purchase the other's interest in the land.

Bell moved onto the upper lot in 1989 and lived on the land in a recreational vehicle through 2010. Although they did everything required of them under the JVA, the Lanes were ultimately unable to accomplish a lot split because of intervening legislation. They also failed to obtain county approval for a "granny flat" for Bell-with a separate kitchen-attached to the vacation home they were preparing to build on the property.

Shortly thereafter, Bell sought the help of a friend, Jerry Michael Suppa, who was of counsel to a law firm that ultimately represented Bell in the property action. Suppa told John Lane that Bell was entitled to the house and *66wanted a quarter of a million dollars.

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Cite This Page — Counsel Stack

Bluebook (online)
228 Cal. Rptr. 3d 605, 20 Cal. App. 5th 61, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lane-v-bell-calctapp5d-2018.