Kelley v. General Teamsters, Chauffeurs, & Helpers, Local Union 249

544 A.2d 940, 518 Pa. 517, 1988 Pa. LEXIS 192
CourtSupreme Court of Pennsylvania
DecidedJuly 28, 1988
Docket56 W.D. Appeal Docket 1987
StatusPublished
Cited by102 cases

This text of 544 A.2d 940 (Kelley v. General Teamsters, Chauffeurs, & Helpers, Local Union 249) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kelley v. General Teamsters, Chauffeurs, & Helpers, Local Union 249, 544 A.2d 940, 518 Pa. 517, 1988 Pa. LEXIS 192 (Pa. 1988).

Opinions

[519]*519OPINION OF THE COURT

FLAHERTY, Justice.

Local Union 249 of the General Teamsters, Chauffeurs and Helpers appeals from the order of the Superior Court affirming an award of damages against the union entered upon a jury verdict in a malicious prosecution case brought by a former employee, Nancy Kelley. Due to the fact that the union proved, as a matter of law, that it had probable cause to initiate criminal proceedings against Ms. Kelley, we reverse the order of Superior Court and direct the entry of judgment n.o.v. in favor of the appellant union.

Ms. Kelley was hired by the union local in 1967, and worked in the department which received and accounted for the dues paid by over 6,000 union members. In October 1978, her coworker Deborah Banks confessed that she had been stealing from the union. Banks signed a statement admitting the theft, expressing a desire to restore the funds though she did not know how much money she had stolen, and stating that no one else was involved.

A private labor attorney, Joseph Pass, was retained to supervise an investigation. He engaged Richard Bell, an auditor from the international union, to audit the local union’s funds. In December 1978, the audit concluded that $9,697 was missing, and Banks provided a second statement indicating she had stolen that amount. The investigation continued, however, due to the belief of Pass, Bell and Melvin Brooks, a CPA employed by the local union, that the thefts would have been difficult if not impossible for one person to accomplish alone.

In January 1979, Banks gave a third statement, in which she repudiated her prior statements that she had acted alone; she implicated Ms. Kelley in the scheme and alleged that the two had split the stolen money. Ms. Kelley denied the accusation, but she was suspended immediately pending further investigation. She filed a grievance over her suspension, but did not pursue it. The continuing investigation included a polygraph examination of Banks on October 8, [520]*5201979, which indicated that she was truthful in implicating Ms. Kelley and denying the involvement of any union officials. Ms. Kelley declined an offer to undergo a polygraph test. Banks agreed to repay half the loss, or $5,000, and in return for her confession, cooperation, and restitution, the union agreed to forgo criminal proceedings against her.

Attorney Pass informed the district attorney of the investigation and received his approval to bring criminal charges against Ms. Kelley. Pass recommended to the union that charges be filed, and a union officer signed a criminal complaint. At Ms. Kelley’s preliminary hearing, the magistrate held the case for court, and the district attorney subsequently obtained an indictment against her. She was acquitted of the theft charge at her jury trial.

She then brought this action for malicious prosecution against the local union, alleging that there was no probable cause for the criminal charges and that the union did not really believe she was guilty of the theft. The jury found in favor of Ms. Kelley, awarding her $106,000 in compensatory damages and $150,000 in punitive damages. The trial court refused to alter the award, and the Superior Court affirmed the judgment except for delay damages which had improperly been added to the jury’s award.

The union argues that the trial court erred in allowing the case to go to the jury, for the evidence established, as a matter of law, that the union had probable cause to initiate criminal proceedings against Ms. Kelley. Alternatively, the union seeks a new trial due to erroneous instructions given to the jury. The union claims, among other things, that the court erred in charging the jury that the advice of an attorney may establish probable cause for prosecution if the legal advice is sought in good faith and the advice is given after full disclosure of the facts to the attorney, when, in fact, an attorney’s advice conclusively establishes probable cause if the advice is sought in good faith and the advice is given after full disclosure of the facts.

A cause of action for malicious prosecution has three elements. The defendant must have instituted proceedings [521]*521against the plaintiff 1) without probable cause, 2) with malice, and 3) the proceedings must have terminated in favor of the plaintiff. Miller v. Pennsylvania R.R. Co., 371 Pa. 308, 313, 89 A.2d 809, 811 (1952). It is undisputed that the criminal proceedings underlying this litigation resulted in Ms. Kelley’s acquittal. Malice may be inferred from the absence of probable cause. Hugee v. Pennsylvania R.R. Co., 376 Pa. 286, 291, 101 A.2d 740, 743 (1954). Thus, only the first element is at issue in this case. Usually, the existence of probable cause is a question of law for the court rather than a jury question, but may be submitted to the jury when facts material to the issue of probable cause are in controversy.

The trial court submitted this issue to the jury, with the following instruction:

You have another element in this case, and that is that the defendant — testimony is that they sought the advice of counsel before the prosecution [was] instituted. If a defendant — if you determine that the defendant did seek the advice of counsel and that the defendant initiated these criminal proceedings in reliance on this advice of counsel, then you may find that probable cause did exist if you find that the defendant sought the advice in good faith and that full disclosure of all the facts were [sic] made to the attorney, so that merely asking an attorney or getting advice from an attorney does not mean that that constitutes probable cause, but you have to find that the attorney was given all of the information, proper information, for the attorney to give them that advice.

(Emphasis added.) The appellant is correct in asserting that the instruction is erroneous. Criminal proceedings initiated upon advice of counsel are conclusively presumed to be supported by probable cause when the advice of counsel was sought in good faith and the advice was given after full disclosure of the facts to the attorney. Stritmatter v. Nese, 347 Pa. 9, 31 A.2d 510 (1943). The quoted instruction indicates that the jury need not necessarily find probable cause even if it found that the union sought [522]*522Attorney Pass’s advice in good faith and fully disclosed the facts to him. This was error.

The deference accorded the advice of an attorney is consonant with the policies related to the tort of malicious prosecution. The tort involves a conflict between the interest of society in law enforcement as opposed to the individual interest in freedom from false accusation. Clearly, the interest in preservation of the public order is “the more important of the conflicting public policies.” Miller, 371 Pa. at 310, 89 A.2d at 809. “Malicious prosecution is an action which runs counter to obvious policies of the law in favor of encouraging proceedings against those who are apparently guilty---- It never has been regarded with any favor by the courts, and it is hedged with restrictions which make it very difficult to maintain.” Id., 371 Pa. at 310-11, 89 A.2d at 810 (quoting Prosser on Torts (1941)). “If this were not so, it would deter men from approaching the courts of justice for relief.” Simpson v. Montgomery Ward & Co., 354 Pa.

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Bluebook (online)
544 A.2d 940, 518 Pa. 517, 1988 Pa. LEXIS 192, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kelley-v-general-teamsters-chauffeurs-helpers-local-union-249-pa-1988.