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Employment: Malicious prosecution of arbitration

A divided California Supreme Court held that a party cannot sue for the malicious prosecution of a prior action-whether commenced in court or in arbitration-if it was resolved through contractual arbitration.

In this case Tremco Inc. sued Walter Brennan, a former employee after he went to work for a competitor. Some of Tremco's claims were decided in Brennan's favor by summary adjudication; the others the parties agreed to arbitrate. On these claims the arbitrator ruled in Brennan's favor. After the award was confirmed, Brennan filed a malicious prosecution action against Tremco. The company denied the sufficiency of the claim in a demurrer. The trial court sustained the demurrer, ...

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