Motcomb Estates, Ltd. v. CMB Export Infrastructure Investment Group 48, LP

Summary

The Appellate Division, First Department unanimously affirmed dismissal of a malicious prosecution action under CPLR 3211(a)(7). The court held that plaintiffs failed to sufficiently allege the absence of probable cause, noting that prior orders created a presumption of probable cause that plaintiffs did not overcome. The court also held that its reversal of orders in the underlying action did not establish a lack of probable cause when that action was commenced.

Holdings

1. The complaint was properly dismissed under CPLR 3211(a)(7) because it failed to sufficiently allege the absence of probable cause to initiate or continue the underlying action.
2. Reversal of the prior motion court's orders did not establish or conclusively determine that defendants lacked probable cause to commence the underlying action in the first instance.

Questions Presented

1. Whether the complaint sufficiently alleged that defendants lacked probable cause to initiate or continue the underlying action, as required for a malicious-prosecution claim.
2. Whether the prior motion court's orders and consideration of the Term Sheet created a presumption of probable cause that plaintiffs' allegations failed to overcome.
3. Whether reversal of the prior motion court's orders established that defendants lacked probable cause when they commenced the underlying action.

Disposition

affirmed