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Paying $50k Is Not a Favorable Termination

Citizens of Humanity v. Ramirez, No. B299469 (D2d5 Apr. 19, 2021)

Employer settled a wage and hour case with employee, on an individual basis, for $50k. Then it sued her and her lawyer for malicious prosecution. But you can’t do that. An element of malicious prosecution is a termination of the prior action in a manner favorable to the current plaintiff. Obviously, a $50k settlement is not a favorable termination, even if it ends the litigation with a dismissal. And since a malicious prosecution claim is a lawsuit based on a prior lawsuit, the anti-SLAPP statute is implicated. Here, such a motion should have been granted. 

Reversed.


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