D&D Goryoka v. Bank of Southern California
Plaintiffs and appellants D&D Goryoka, Inc. (DGI) and its sole shareholders, Amir Goryoka, and Izik Aziz Goryoka, appeal from a judgment of dismissal entered after the trial court sustained without leave to amend the demurrer of defendant and respondent Bank of Southern California, N.A. (Bank) to appellants' complaint for malicious prosecution. In that action, appellants alleged Bank wrongfully maintained a lawsuit against DGI seeking repayment of an $880,000 Small Business Administration (SBA) loan because, after causing a nonjudicial foreclosure to take place, Bank could not obtain a deficiency judgment against DGI due to DGI's status as a co-borrower under SBA regulations. The trial court ruled appellants could not allege Bank lacked probable cause to sue under the so-called interim adverse judgment rule, in which probable cause for purposes of such a claim may be established by certain nonfinal rulings in the underlying lawsuit, including, as here, denial of a defense su
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