Kazi v. Rosen & Assocs.
In the original federal action, two corporate shareholders, represented by counsel, filed a complaint against the corporation and related entities, asserting numerous causes of action, including claims for alleged violations of the Racketeer Influenced and Corrupt Organizations Act (RICO). (18 U.S.C. § 1961 et seq.) The district court ultimately entered judgment as a matter of law against the shareholders and in favor of the corporate entities on the RICO claims; because the RICO claims were the sole basis for federal jurisdiction (and the district court found the corporate defendants had elected not to challenge these claims for their own strategic purposes as they wished to proceed in federal court), the district court declined to exercise supplemental jurisdiction over the multiple remaining claims, and the action was transferred to state court.
With the corporate shareholders’ remaining state claims still pending, the corporate entities then filed an action for malicious prosecution and abuse of process against the two corporate shareholders and their counsel, based on the RICO claims.
The corporate shareholders and their counsel, in turn, filed a special motion to strike the complaint for malicious prosecution and abuse of process pursuant to Code of Civil Procedure section 425.16. Over the corporate entities’ opposition, the trial court granted the special motion to strike.
The corporate entities appeal. Because the corporate entities failed to satisfy their burden to demonstrate a probability of prevailing on their claims for malicious prosecution and abuse of process, we affirm.
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