Facts

In 1998, on behalf of its client, The Diana Fund, Manatt, Phelps and Phillips, a Los Angeles law firm, filed an action against Stewart and Lynda Resnick, Roll International Corp., and Franklin Mint Co., alleging trademark dilution and false advertising in relation to the sale of Princess Diana memorabilia. The lawsuit was dismissed in 2000, and the Resnicks filed an action against Manatt, The Diana Fund, and Manatt partner Mark Lee, alleging malicious prosecution. Later, a Court of Appeal decision allowed arguments on the malicious prosecution claim.

PLAINTIFF'S CONTENTIONS:
Plaintiffs argued that defendants did not have probable cause for the original claims and that no reasonable attorney would believe so. Plaintiffs alleged that the lawsuit was an intentional effort to deteriorate sales of Princess Diana memorabilia.

Result

The parties reached a settlement, whereby defendant agreed to pay $25 million to plaintiffs.