Does a party have probable cause if it advances a legal theory of recovery "which is untenable under the facts known to [it"?
California, United States of America
The following excerpt is from Innovation Ventures, LLC v. Rubinstein, G046242 (Cal. App. 2012):
A party does not have probable cause if it advances a legal theory of recovery "which is untenable under the facts known to [it]. In making its determination whether the prior action was legally tenable, the trial court must construe the allegations of the underlying complaint liberally in a light most favorable to the malicious
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prosecution defendant. [Citation.]" (Sangster v. Paetkau (1998) 68 Cal.App.4th 151, 165.)
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