Early Detection Center, PC v. New York Life Insurance

403 N.W.2d 830, 157 Mich. App. 618
CourtMichigan Court of Appeals
DecidedDecember 29, 1986
DocketDocket 84910
StatusPublished
Cited by86 cases

This text of 403 N.W.2d 830 (Early Detection Center, PC v. New York Life Insurance) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Early Detection Center, PC v. New York Life Insurance, 403 N.W.2d 830, 157 Mich. App. 618 (Mich. Ct. App. 1986).

Opinion

Per Curiam.

On September 24, 1984, plaintiffs filed suit against defendants, advancing claims of defamation, rendering false testimony and conspiracy to do so, malicious prosecution, and intentional infliction of emotional distress. Also alleged were counts for loss of consortium by plaintiffs Aspasia, John, George, and Peter Metropoulos, the wife and sons of plaintiff Efstathios Metropoulos. A motion for summary judgment was granted in favor of the defendants through an order dated March 1, 1985. Plaintiffs then filed a motion to amend their com *622 plaint, which was denied April 22, 1985. Plaintiffs appeal as of right from the order denying their motion to amend.

On January 10, 1975, George Mastrapas was issued a disability insurance policy from defendant New York Life Insurance Company (nylic). Mastrapas began treating with plaintiff Efstathios Metropoulos in July, 1976, due to several alleged medical problems, and in December of that year began receiving disability payments from nylic. The insurer continued these payments until August, 1977, at which time Mastrapas was examined by Irene Macko, M.D., at the request of nylic. After examining Mastrapas, Dr. Macko concluded that he was not disabled.

Mastrapas filed suit against nylic in federal court, through which he sought the recovery of benefits which he alleged were due him under the insurance policy. A jury verdict in favor of nylic and against Mastrapas was returned June 25, 1981.

On January 29, 1982, defendants filed suit in federal court against plaintiffs Early Detection Center, P.C., and Efstathios Metropoulos in an effort to recover the costs of defending the prior action and the benefits paid to Mastrapas. Among the allegations advanced were claims of insurance fraud. Prior to trial, summary judgment in favor of plaintiffs was granted as to all counts except that alleging fraud. On September 27, 1983, a judgment of no cause of action was entered in favor of plaintiffs as to the remaining count. The instant action was filed by plaintiffs in response to this federal court suit.

Plaintiffs’ original complaint in the instant action advanced claims of defamation, malicious prosecution, the rendering of false testimony by a witness, conspiracy to give false testimony, and *623 intentional infliction of emotional distress. Defendants moved for summary judgment under GCR 1963, 117.2(1), contending that, even accepting as true all the allegations of fact contained in the complaint, plaintiffs had failed to state a claim upon which relief could be granted. Defendant nylic argued that a claim for false testimony does not exist as to parties to prior litigation, that witnesses are given absolute immunity as to any testimony given at trial, even if false, and that there is no civil cause of action for conspiracy to give false testimony in Michigan. As to the defamation claim, nylic cited the expiration of the one-year period of limitation. In the malicious prosecution claim, nylic argued that plaintiffs could not prove the absence of probable cause, and that they had not alleged special injury. Finally, nylic contended that the filing of a lawsuit cannot be considered extreme and outrageous conduct, and thus would not support a claim for intentional infliction of emotional distress. The motion for summary judgment was granted by the trial court.

Plaintiffs subsequently sought to file an amended complaint which again advanced claims of intentional infliction of emotional distress and malicious prosecution, but which contained the additional allegations of abuse of process, invasion of the right to privacy, and intentional interference with a business relationship. Plaintiffs advanced the following arguments in support of their motion for leave to amend. As to the intentional infliction of emotional distress claim, the element of outrageous conduct was established by the defendants’ filing of a groundless lawsuit. As to the malicious prosecution claim, special damages were claimed to have been alleged in the amended complaint. In support of the abuse of process count, plaintiffs alleged an ulterior purpose on the *624 part of the defendants in attempting to intimidate physicians, which plaintiffs claim was shown by the fact that nylic filed and proceeded with a lawsuit, the cost of which exceeded any amount nylic could hope to recover. Plaintiffs also argued that an intentional interference with a business relationship occurred in that, by suing plaintiffs, defendants drew Metropoulos away from his medical practice and caused damage to his good will and reputation. Plaintiffs were also said to suffer an invasion of the right to privacy because a groundless suit was brought against them.

The trial court denied plaintiffs’ motion to amend the complaint, finding that the amendment would be a futile act as to the intentional infliction of emotional distress, malicious prosecution, and abuse of process claims. The court stated that plaintiffs had failed to allege special damages and that, because the federal court denied plaintiffs’ motion for summary judgment on the fraud count brought by defendant nylic, there must have been probable cause to bring the suit. Further, the trial court held that the amended complaint also failed to state a cause of action for intentional interference with a business relationship because the inability to be at one’s office is insufficient to establish such a claim. Finally, the trial court held that the right to privacy amendment was futile because it was reasonable for the defendants to file suit.

Pursuant to GCR 1963, 118.1, a motion to amend the pleadings should be freely given when justice so requires. While the decision not to allow an amendment is left to the trial court’s discretion, that discretion is not "boundless,” in that the trial court must find that justice would not be served by the amendment. Ben P Fyke & Sons v Gunter Co, 390 Mich 649, 658; 213 NW2d 134 (1973). Further, a motion to amend should only be denied for *625 particularized reasons, one being the futility of the amendment. 390 Mich 656. An amendment is futile where, ignoring the substantive merits of the claim, it is legally insufficient on its face. 390 Mich 660. A decision to deny a motion for leave to amend is not error "where the pleadings as sought to be amended still fail to state a claim.” Cousineau v Ford Motor Co, 140 Mich App 19, 36; 363 NW2d 721 (1985).

Plaintiffs argue that the trial court erred in denying the motion for leave to amend as to each of the counts contained in the proposed amended complaint. We will consider each of the six theories advanced by plaintiffs seriatim.

i

INTENTIONAL INFLICTION OF EMOTIONAL DISTRESS

Although our Supreme Court has never formally adopted this tort as viable under this state’s jurisprudence, Roberts v Auto-Owners Ins Co,

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Bluebook (online)
403 N.W.2d 830, 157 Mich. App. 618, Counsel Stack Legal Research, https://law.counselstack.com/opinion/early-detection-center-pc-v-new-york-life-insurance-michctapp-1986.