Legal Question in Civil Litigation in New York

Re: Being sued for malicious prosecution

It's impossible to be certain of the outcome, but the lawsuit is something that has to be disclosed to the prospective lender. Check with your insurance professionals immediately. There may be insurance that might cover this claim, or that might (even if it won't cover the losses in the lawsuit) might pay for an attorney to handle the defense. Your existing homeowner's policy and any commercial policies that you or your spouse's businesses may have should be checked. Immediately. THe insurance might transform the lawsuit into a non-issue so far as a lender is concerned.

This post is not legal advice and does not create an attorney-client relationship. It is a comment on the legal question posed by the poster and should not be relied upon unless and until an attorney-client relationship is entered into. Doing so would require signing an engagement letter and depositing a retainer to secure payment of legal fees.

Re: Being sued for malicious prosecution

Not that I can see from the question alone. A lawsuit is no more then a collection of allegations that must be proven to the court and jury, a verdict rendered and reduced to a judgment, before it is collectible.

Once a judgment is entered, that is a different matter. Malicious prosection is an intentional tort that is hard to prove, but once proven, frequently it isn't covered by regular insurance such as homeowners. I would still forward any summons to your insurer as soon as you get it because they will have a duty to defend you if there is even an allegation that brings the lawsuit within the scope of the policy. That means they would hire lawyers, but not necessarily pay a judgment. But if you don't notify them, then they can disclaim coverage.

If your husband is being sued as a result of something that happened while in the scope of his employment for a State or County agency for instance, or any company for that matter, he should submit it to the appropriate person at work, and they should provide both defense and coverage.

The only time I would be concerned about your situation is if it somehow arose directly out of the sale or purchase of your house, and a Notice of Pendency is filed, which would prevent a sale.

It is a lien that notifies people of a pending lawsuit, and will be discovered by a title search. If I can help you further, or you need an attorney, please feel free to contact me.

Re: Being sued for malicious prosecution

Nope...not at all. The lawsuit has no bearing on the real property/title issues.

However, make certain that you defend the lawsuit and not let a default occur. If that were to happen, a judgment would ensue after motion practice thatcould adversely affect your sale.

Feel free to contact me with any questions.

Good Luck

RRG