Krienke v. Citizens National Bank

235 N.W. 24, 182 Minn. 549, 1931 Minn. LEXIS 1218
CourtSupreme Court of Minnesota
DecidedFebruary 20, 1931
DocketNo. 28,274.
StatusPublished
Cited by1 cases

This text of 235 N.W. 24 (Krienke v. Citizens National Bank) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Krienke v. Citizens National Bank, 235 N.W. 24, 182 Minn. 549, 1931 Minn. LEXIS 1218 (Mich. 1931).

Opinion

Dibell, J.

Action for malicious prosecution of a criminal proceeding. There was a verdict for the plaintiff for $3,150, and the defendants appeal from the order denying their motion for judgment notwithstanding or a new trial. After the verdict and pending the appeal the plaintiff died, and his special administrator, August F. Krienke, was substituted in his place in this court.

*551 To maintain an action for the malicious prosecution of a criminal proceeding the plaintiff must prove that the action was instituted by the defendant maliciously and without probable cause; and it is a defense that the one instigating the proceeding reasonably and in good faith put the facts before the prosecuting officer fully and fairly and that a prosecution was advised by the officer. 4 Dunnell, Minn. Dig. (2 ed. & Supp.) § 5724, et seq.

On April 14, 1925, the plaintiff gave his six months note to the defend'ant bank for $1,777. The negotiations were had with the president, Joseph J'. Rachac, one of the defendants, who was an officer of the bank and had been connected with it for 20 years. The plaintiff had not done business with the bank before. He came to the bank with Michael Ferch, who had done business with the bank for a number of years and then owed it $5,502.86. Before taking the note the plaintiff was required to make a property statement. It was made on a Federal Reserve Bank form. In it the plaintiff was represented to be the owner of 165 acres in Big Stone county worth $8,250, 160 acres worth -$4,000, 350 acres in Lake county worth $3,500, and personal property worth $2,000, making a total of $17,750, and a net of $15,973 after deducting the $1,777 note. The plaintiff was very deaf. Ferch, according to the plaintiff, did the talking, told what property the plaintiff owned, and placed the value upon it. Rachac wrote in the description and the value given by Ferch. There had been some talk between the plaintiff and Ferch before about his helping him out by giving .a note to the bank. Ferch’s indebtedness to the bank, according to the" testimony of Rachac, was regarded at least as slow. When the note was given $1,500 was credited on the Ferch indebtedness. The disposition of the $277 is uncertain. Rachac thinks it was paid to the plaintiff, but he has no definite recollection. The plaintiff says he did not get it. The jury could believe him. The' transaction at the bank was quite a Ferch and Rachac affair. Ferch is not a witness. No money passed unless the $277 did. The books show that- $1,500 was credited to Ferch. They do not show where the $277 went if it did go.

*552 The note was not paid. • On November 22, 1926, judgment was entered in favor of the bank for $1,993.85. An execution was issued and returned unsatisfied. Proceedings supplementary to execution followed. The plaintiff on April 23, 1927, made a disclosure before a referee. He stated, according to the report of the referee which he subscribed, that some of the personal property described in the property statement was heavily encumb,ered and at the time of the disclosure was gone; that he did not know the description of the 165 acres in Big Stone county; that he did not know the description of the 350 acres in Lake county; that he did not know the description of the land in Saskatchewan, Canada, but no such land was mentioned in the property statement; that he did not know from whom he bought the land in Big Stone county or whether a deed was recorded; that he did not know whether he had any interest in any of the Big Stone county lands; that they were heavily encumbered; that he did not know that he ever had absolute title; and that two years before he deeded a tract of land in Lake county to a relative of Ferch. There is no other reference to the Lake county land.

Some time before May, 1927, when the court convened in Rice county, Rachac consulted with the county attorney. He produced the property statement and the disclosure. The county attorney advised that a crime had been committed. G. S. 1923 (2 Mason, 1927) .§ 10388. The jury could find that Rachac greatly failed in telling the whole story. He appeared before the May, 1927, grand jury. The plaintiff was indicted for obtaining credit by a false property statement. Nothing was done for a while. The plaintiff was in Minneapolis. He was later arrested and lodged in jail in Minneapolis and was taken thence to Faribault and was in jail there until released on bond. He had one or more conferences with Rachac. He says that Rachac told him that if they, probably referring to his friends, would pay up he could get out of jail. On November 3, 1927, he gave the bank a quitclaim deed to some Big Stone county land. Under date of November 9, 1927, the defendants wrote the county attorney as follows:

*553 “We are all fixed up at this end regarding the Krienke matter and it will be satisfactory to us to have the action dismissed. Thanking you we are
“Respectfully yours ,
“Citizens National Bank
“By J. J. Rachac, Pres.”

The indictment was then dismissed on the motion of the county attorney. He had found evidence that the plaintiff had some sort of title to some Big Stone county land, and probably communicated with Rachac prior to the letter above quoted.

The evidence sustains a finding of the existence of all the elements essential to constitute malicious prosecution. The plaintiff was 60 years old. He had defective hearing. His testimony is not clear. If seems doubtful whether he understood just what was going on. He was unable to tell clearly what the transaction really was. He had been a sort of itinerant minister or exhorter in his earlier years until his infirmity intervened. Afterwards he farmed and later became interested in real estate. A jury was justified in thinking that Ferch took him to the bank; that doing this was in the interest of Ferch and the bank; and that he was putty in the hands of Ferch and Rachac. It might well have thought that the plaintiff appreciated little of what was going, on and had no thought of doing wrong. The ultimate question was one of fact and for the jury, which was justified in finding malicious prosecution for which the defendants were liable.

In its general charge the court, referring to the disclosure in supplementary proceedings and a letter relative to the Big Stone county lands, said:

“Those exhibits were received only for the purpose of showing what statement the defendant Rachac made to the county attorney. They are not here for any other purpose, and you should receive them and consider them only for that purpose. The purpose of those exhibits was to show to the grand jury what statement was made to the grand jury by the defendants and what statement was made to the county attorney when the criminal prosecution was *554 instituted and for the purpose of showing whether the defendants made a full, fair, and complete statement of the case to the county-attorney and to the grand jury in instituting the prosecution, and I will ask you to consider those exhibits for that purpose in deciding that question.”

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Bluebook (online)
235 N.W. 24, 182 Minn. 549, 1931 Minn. LEXIS 1218, Counsel Stack Legal Research, https://law.counselstack.com/opinion/krienke-v-citizens-national-bank-minn-1931.