Medley Capital Corp. v. Sec. Nat'l Guaranty, Inc.

*36Respondent Medley Capital Corporation (MCC) was sued for fraud in a cross-complaint filed by appellants Security National Guaranty, Inc. and Edmond Ghandour (when referred to collectively, appellants). The cross-complaint was filed against the background that appellants were advised MCC had no involvement in the transaction involved in the lawsuit, which lawsuit was thereafter maintained despite that appellants were warned that it should be dismissed. Appellants refused, and the cross-complaint remained *37pending. Then, after appellants settled the main lawsuit against them, they filed a…