Hudon v. First Safe Deposit National Bank of New Bedford

24 Mass. App. Dec. 1
CourtMassachusetts District Court, Appellate Division
DecidedJuly 1, 1962
DocketNo. 2199
StatusPublished

This text of 24 Mass. App. Dec. 1 (Hudon v. First Safe Deposit National Bank of New Bedford) is published on Counsel Stack Legal Research, covering Massachusetts District Court, Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hudon v. First Safe Deposit National Bank of New Bedford, 24 Mass. App. Dec. 1 (Mass. Ct. App. 1962).

Opinion

Cox, J.

The first of two counts is for

maliciously and without probable cause causing a pilot house owned by the plaintiff and in his possession to be seized by the United States Marshal in proceedings instituted by the defendant in the United States District Court to foreclose a mortgage which it held on the fishing vessel North Star, in which proceedings the pilot house was claimed by the bank to be part of the vessel. The second count will be referred to hereafter.

The plaintiff was under contract with the owner of the vessel for the construction of a [3]*3new pilot house which he was also to install. The contract ,price was $4500. There was evidence that the pilot house was worth $3000.

The plaintiff had subordinated to the bank’s mortgage any lien or claim which he might have against the North Star, but declined the owner’s and the bank’s request that the pilot house be put on the vessel, refusing to do so unless he were paid. The attorney for the bank offered the plaintiff $1500. to install the pilot house. The plaintiff demanded $2300. This was refused. At no time was the pilot house on the vessel.

On March 3, 1960 a vice-president of the bank under oath signed the libel to foreclose the bank’s mortgage on the North Star. The libel recited that the pilot house was part of the North Star although not on the vessel. The libel contained a request to the United States District Court to issue process for the seizure of the vessel including the pilot house. Process issued by virtue of which the United States Marshal went to New Bedford on March 17, 1960 and seized the pilot house which the plaintiff had previously removed from his shop to the yard of his mother’s home. On seeing the process which the marshal showed him, the plaintiff called his attorney but offered no interference.

After the seizure the plaintiff moved for summary judgment for the return of the pilot house to him. Before a hearing [in the federal court] on the plaintiff’s motion for summary judgment, the bank filed a motion for [4]*4order of sale of the vessel and the pilot house. The bank’s motion was allowed' without prior notice to the plaintiff. The plaintiff filed a second identical motion for summary judgment which was denied after a contested hearing. The [federal] District Court set a date of sale. The plaintiff intervened. The court, after hearing, found that the [present] plaintiff had full title to the pilot house; that the defendant had no right to have it attached; and that the marshal had no right to hold it. It was ordered returned to the plaintiff who was awarded a nominal proctor’s fee of $20.00 and a witness fee of $15.00. There was evidence that the pilot house was returned to the plaintiff in a damaged condition. The plaintiff then brought this action.

In support of Count 1 the plaintiff contends there was no .compliance by the bank’s attorney with Rule IX of Admiralty Rules promulgated by the Supreme Court of the United States. That rule is as follows:

"In all suits in rem against a ship and/or her appurtenances, if such appurtenances, or any of them, are in the possession or custody of any third person, the court, on due notice to such third person and after hearing, shall decree that the same be delivered into the custody of the marshal or other proper officer, if, on hearing, it appears that such action is required by law and justice.”

The bank’s attorney testified that he did not comply with Rule IX and did nothing [5]*5about it. The docket of the United States District Court shows that the attorney gave no notice to anyone except to the boat North Star, Inc. The plaintiff also contends in support of Count 1 that the defendant’s libel under oath was false as to ownership of the pilot house. These two contentions were the gist of his requested rulings Nos. 8, 10, 11 and 13 which the judge denied. The bank’s attorney is not a defendant.

The judge found for the defendant. He made special findings. He found that the defendant bank acted on advice of counsel in listing the pilot house' as part of the mortgaged property and acted in good faith; that the question was not obviously clear as to whether or not the pilot house was part of the mortgaged property and that it required extensive hearings in the Federal Court to so determine. He concluded

“On these facts I find that the elements of malicious prosecution or abuse of process by the defendant are lacking and that the plaintiff is not entitled to recover for damages in this regard. At best, the defendant’s conduct can be described as an honest mistake of judgment.”

The judge also found

“that the plaintiff suffered no loss in value to the pilot house due to the possible negligent handling of the same while in the custody of the marshal.”

We think the judge was right in finding for the defendant in Count 1 being the count [6]*6for malicious prosecution and abuse of process.

“The action for malicious prosecution lies for abuse of civil as well as criminal process. ... In order to prevail in such an action, the plaintiff has the burden of proving that the original action was brought maliciously and without probable cause, and has been terminated in favor of the plaintiff.” Rosenblum v. Ginis, 297 Mass. 493, 497.

There was evidence that would warrant a finding that the defendant’s attorney acted without reasonable or probable cause in preparing for the defendant and prosecuting a libel to foreclose which included the pilot house as appurtenant to the North Star and his neglect of Rule IX would bear on the point, but, it is clear that the defendant bank acted on the advice of counsel from start to finish, and, although the advice was incorrect, the defendant acting on it in good faith is protected. Higgins v. Pratt, 316 Mass. 700, 710. The judge’s finding that the defendant in good faith relied on the advice of counsel supports his conclusion that the defendant acted with probable cause and without malice. Higgins v. Pratt, 316 Mass. 700, 710. Boylen v. Tracy, 254 Mass. 105, 108.

The case of Wills v. Noyes, 12 Pick. 324, cited by the plaintiff, contains nothing in conflict with what has been said here. In that case the defendants were held liable in an action for malicious prosecution for illegally attempting, without advice of counsel, to [7]*7replevy a boat in which they had only a partial interest. At page 327, Shaw, C. J. points out that the defendants could have escaped liability by proving that they acted in good faith under advice of counsel even though such advice was incorrect. We see no reversible error relating to Count 1 and the requested rulings directed toward it, Nos. 8, 9, 10, 11, 13, 15, and 18, which the judge denied. They appear in the margin.

Count 2 is as follows:

"The Plaintiff says that on March 17, 1960,

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Jackson v. Innes
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Boylen v. Tracy
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Colella v. Essex County Acceptance Corp.
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24 Mass. App. Dec. 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hudon-v-first-safe-deposit-national-bank-of-new-bedford-massdistctapp-1962.