Havilah Real Property Services, LLC v. Early
216 Md. App. 613
| Md. Ct. Spec. App. | 2014Background
- Havilah sued attorney Ronald Early and Lerch, Early & Brewer for conspiracy to commit malicious use of process.
- Maryland action: 48 lis pendens filed in the underlying Maryland suit against Havilah properties; Havilah moved to dismiss and for judgments, all denied.
- Trial court dismissed Havilah’s complaint with prejudice for lack of malice and lack of lack of probable cause; judge stated there was probable cause for the Maryland action.
- Havilah amended the complaint to allege more about attorneys’ knowledge; the circuit court again dismissed, finding no malice and no lack of probable cause.
- Court held that denial of judgments in the prior action creates a presumption of probable cause, and that malice was not established; judgment affirmed on these bases.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Was there a lack of probable cause in the Maryland action? | Havilah argues motions denial doesn’t prove probable cause. | Denials of judgment indicate probable cause. | Probable cause presumed from denial of judgment; no lack shown. |
| Did Havilah allege sufficient malice? | Malice implied from attorney participation in groundless act. | Qualified privilege requires actual malice; none shown. | Malice not established; implied malice not found. |
| Should Maryland or D.C. law apply; is lis pendens a special injury? | Choice of law governs special injury analysis. | Analysis confined to presumption of probable cause; no issue reached. | Court did not reach this issue as resolution of first two disposing claims. |
Key Cases Cited
- Alleco Inc. v. Harry & Jeanette Weinberg Foundation, Inc., 340 Md. 176 (Md. 1995) (elements of malicious use of process; five factors)
- One Thousand Fleet Ltd. P’ship v. Guerriero, 346 Md. 29 (Md. 1997) (probable cause framework in malicious-use actions)
- Owens v. Graetzel, 149 Md. 689 (Md. 1926) (probable cause indispensable element in malicious use)
- North Point Const. Co. v. Sagner, 185 Md. 200 (Md. 1945) (burden on plaintiff to show lack of probable cause; improper motive)
- H.P. Rieger & Co. v. Knight, 128 Md. 189 (Md. 1916) (injunctions as evidence of probable cause depending on circumstances)