A unilateral dismissal of the underlying action while facing a motion for terminating discovery sanctions was a favorable termination sufficient to serve as the basis for a malicious prosecution action by the former defendant even though the dismissal was accompanied by a negotiated payment of less than all of the former defendant’s legal fees. The slight reduction in fees was a matter ancillary to the merits, and so didn’t keep the dismissal from being a favorable termination. See HMS Capital, Inc. v. Lawyers Title Co. (2004) 118 Cal.App.4th 204, 215.