DISPLAY FIXTURES CO., ETC. v. RL Hatcher, Inc.

438 N.E.2d 26, 1982 Ind. App. LEXIS 1338
CourtIndiana Court of Appeals
DecidedJuly 29, 1982
Docket3-781A184
StatusPublished
Cited by35 cases

This text of 438 N.E.2d 26 (DISPLAY FIXTURES CO., ETC. v. RL Hatcher, Inc.) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
DISPLAY FIXTURES CO., ETC. v. RL Hatcher, Inc., 438 N.E.2d 26, 1982 Ind. App. LEXIS 1338 (Ind. Ct. App. 1982).

Opinion

*29 STATON, Judge.

Display Fixtures Company appeals the trial court’s judgment for Mercantile National Bank on its counterclaim for slander of title, malicious prosecution, and abuse of process. On appeal, Display raises the following issues:

(1) Are the trial court’s conclusions of law and judgment supported by its special findings of fact?
(2) Are the findings of the trial court supported by sufficient evidence?
(3) Did the trial court err in awarding compensatory and punitive damages in favor of Mercantile?

Affirmed.

Display Fixtures Company (Display) sold and delivered certain equipment to a liquor store operated by R. L. Hatcher, Inc. (Hatcher). Hatcher leased the store from John and Pat McLaughlin (McLaughlins), the beneficial owners under a trust of which Mercantile National Bank (Mercantile) was trustee. Display filed a complaint in two counts against Hatcher and Mercantile. Display alleged that Hatcher had failed to pay $23,462.72 pursuant to a contract between Display and Hatcher. Display further alleged that it was entitled to foreclosure of a mechanics lien against Mercantile and anyone claiming through or under Mercantile. Following the filing of the mechanics lien, Mercantile advised Display by letter that the effect of filing the lien was to make it impossible for Mercantile to borrow funds to pay its construction costs of $46,322.31. Display did not release the lien.

The trial court granted Display a judgment against Hatcher of $22,418.72 plus attorney fees of $4,483.74. The trial court found no valid mechanics lien and ruled against Display on that issue. 1 Mercantile then gave evidence on a counter claim against Display, and the trial court ultimately found for Mercantile, stating its conclusions of law as follows:

“1. That the law is with the Counter-claimant and against the Counterde-fendant.
“2. That the Counterdefendants, Display Fixtures wrongfully caused a lien to be recorded against the real estate of the Counterclaimant and an action to be wrongfully filed and maintained to foreclose such lien against the real estate of Counterclaimant.
“3. That the actions of the Counterde-fendant in filing its lien and instituting and maintaining this action were wilful and malicious and without probable cause.
“4. That as a result of the wrongful acts and abuse of process by the Counterde-fendant, the Counterclaimant’s title was slandered and it was forced to successfully defeat an action maliciously prosecuted by the Counterdefendant and the Counterclaimant is entitled to *30 a Judgment in the amount of $14,-867.44 for actual and compensatory damage, and in the amount of $2,000.00 as punitive damages.”

1.

Conclusions of Law

Display requested special findings of fact pursuant to Ind. Rules of Procedure, Trial Rule 52(A). The purpose of special findings is to provide the parties and the reviewing courts with the theory on which the judge decided the case so that the right of review for error may be effectively preserved. Economy Leasing Co., Ltd. v. Wood (1981), Ind.App., 427 N.E.2d 483, 485; In Re the Marriage of Miles (1977), 173 Ind.App. 5, 8, 362 N.E.2d 171, 174. The Court on appeal shall “not set aside the findings or judgment unless clearly erroneous, and due regard shall be given to the opportunity of the trial court to judge the credibility of witnesses.” TR. 52. The findings or judgment of the trial court will be found clearly erroneous only when a review of all the evidence discloses a definite and firm conviction that the trial court erred. Kincaid v. Lazar (1980), Ind.App., 405 N.E.2d 615, 618. This Court examines only the evidence most favorable to the trial court’s findings, neither weighing the evidence nor judging the credibility of the witnesses. If there is sufficient evidence of probative value to sustain the decision of the trial court, the decision is to be affirmed. Bird v. Del. Muncie Metropolitan Plan Com’n. (1981), Ind.App., 416 N.E.2d 482, 486.

Display contends that the findings do not support the conclusion that it is guilty of malicious prosecution, slander of title, and abuse of process. The essential elements of malicious prosecution are well established in Indiana. The plaintiff has the burden of proving that: the defendant instituted or caused to be instituted a prosecution against the plaintiff; the defendant acted with malice in doing so; the prosecution was instituted without probable cause; and the prosecution terminated in the plaintiff’s favor. Wong v. Tabor (1981), Ind.App., 422 N.E.2d 1279, 1283; Sate v. Koplow (1979), Ind.App., 397 N.E.2d 1082.

Probable cause has been defined as the apparent state of facts found to exist upon reasonable inquiry which would induce a reasonable, intelligent, and prudent man to bring an action. People’s Bank and Trust Co. v. Stock (1979), Ind.App., 392 N.E.2d 505, trans. denied, 403 N.E.2d 1077. Malice can be inferred from a total lack of probable cause or from a culpable omission to make a suitable and reasonable inquiry. People’s Bank, supra at 510.

The essential elements in a slander of title action are that false statements were made, with malice, and that the plaintiff sustained pecuniary loss as a necessary and proximate consequence of the slanderous statements. Harper v. Goodin (1980), Ind.App., 409 N.E.2d 1129, 1134; May v. Anderson (1895), 14 Ind.App. 251, 42 N.E. 946. Malice is publishing matter with knowledge that it is false or with reckless disregard as to whether it is false or not. Harper, supra at 1135; Cockran v. Indianapolis Newspapers, Inc. (1978), Ind.App., 372 N.E.2d 1211.

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Bluebook (online)
438 N.E.2d 26, 1982 Ind. App. LEXIS 1338, Counsel Stack Legal Research, https://law.counselstack.com/opinion/display-fixtures-co-etc-v-rl-hatcher-inc-indctapp-1982.