Pallas v. Zaharopoulos

250 S.E.2d 357, 219 Va. 751, 1979 Va. LEXIS 165
CourtSupreme Court of Virginia
DecidedJanuary 12, 1979
DocketRecord 770822
StatusPublished
Cited by27 cases

This text of 250 S.E.2d 357 (Pallas v. Zaharopoulos) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pallas v. Zaharopoulos, 250 S.E.2d 357, 219 Va. 751, 1979 Va. LEXIS 165 (Va. 1979).

Opinion

COCHRAN, J.,

delivered the opinion of the Court.

In this malicious prosecution action, a jury trial in the court below resulted in a verdict for the plaintiff, Stavros Zaharopoulos, against the defendant, Archie Pallas, for compensatory damages in the sum of $4,200 and punitive damages in the sum of $800. A motion by Pallas to set aside the verdict was argued in 1974 but no action was taken thereon prior to the death of the trial judge. After the qualification of his successor, the motion was re-argued and overruled by the trial court, which entered judgment on the verdict. We granted Pallas a writ of error limited to the question *753 whether as a matter of law he had probable cause, based upon advice of counsel, to prosecute Zaharopoulos. As Zaharopoulos has obtained a jury verdict, approved by the trial court, we shall review the evidence in the light most favorable to him.

In October, 1972, Pallas and Zaharopoulos entered into a lease agreement, prepared by Pallas’s attorney, Richard S. Callaghan, Jr., and Zaharopoulos’s attorney, Nicholas Kapnistos, under which Zaharopoulos leased for the period of one year the business, including the equipment and trade name, known as Archie’s Pizza, and the premises on which the business was conducted. The agreement required rental payments of $2,000 per month and a security deposit of $6,000, $4,000 payable at the time the agreement was executed and the balance of $2,000 payable on or before January 15, 1973. The agreement contained no provision for reentry by the lessor upon the lessee’s default. Zaharopoulos failed to pay the balance of the security deposit in the sum of $2,000 on or before the time designated in the lease agreement.

There is evidence that in November, 1972, Pallas entered the premises and tried unsuccessfully to have a locksmith change the locks on the doors even though Zaharopoulos was not then in default under the lease. There is also evidence that in early February of 1973, when Zaharopoulos was in default, Pallas went to Archie’s Pizza and used insulting and abusive language in demanding payment of Zaharopoulos.

On February 13, 1973, Pallas and his attorney, Callaghan, went to the restaurant to try to persuade Zaharopoulos to vacate the premises. After a few minutes of discussion Zaharopoulos ordered Pallas to leave and Pallas then waited outside the restaurant while Callaghan and Zaharopoulos continued their conversation. Zaharopoulos testified that he assured Callaghan that he would pay the balance of the security deposit, but Callaghan threatened that if he did not that day either pay or surrender the property Callaghan would have him put in jail. Using a telephone at the restaurant, Callaghan sent for a locksmith who came to change the locks, but this effort was frustrated by a police officer called by Zaharopoulos.

As the discussion continued, Zaharopoulos telephoned his attorney, Kapnistos, and both he and Callaghan talked to Kapnistos. During the conversation there was discussion of an adding machine and toaster, which Pallas maintained were missing from the restaurant. Kapnistos testified that Zaharopoulos told him that the adding machine was at Zaharopoulos’s house and the toaster was *754 defective and was being repaired. Callaghan testified that Pallas came back into the restaurant and listened as Zaharopoulos conversed with Kapnistos in a foreign language which Callaghan presumed to be Greek, and that Pallas, translating Zaharopoulos’s part of the conversation for Callaghan, quoted Zaharopoulos as saying that he had the adding machine in his possession and would not return it. Callaghan warned Kapnistos that Zaharopoulos would be arrested if he did not vacate the premises. At the conclusion of the telephone conversation, Callaghan telephoned a justice of the peace, who also told Zaharopoulos that he must leave the premises or go to jail. When Zaharopoulos refused to capitulate, Callaghan and Pallas departed.

Before taking further action, Callaghan discussed the matter with John A. Dezio, Assistant Commonwealth’s Attorney, who suggested that Zaharopoulos might be guilty of criminal trespass as well as larceny. Accordingly, Callaghan advised Pallas that he could swear out warrants for trespass and larceny, and Pallas did so. Callaghan was present at Archie’s Pizza the same afternoon when Zaharopoulos was arrested on the trespass warrant. Subsequently, Zaharopoulos was charged with grand larceny. In General District Court, he was acquitted of trespass and convicted of petty larceny; on appeal, the larceny charge also was dismissed. Zaharopoulos then instituted this action for malicious prosecution against Pallas based upon the warrants which Pallas had sworn out against him.

At the conclusion of plaintiff’s evidence, the trial court sustained defendant’s motion to strike the evidence as it related to the larceny warrant. However, the court refused to strike the evidence insofar as the charge related to the warrant for criminal trespass. When the motion was renewed after all the evidence had been taken, the trial judge, characterizing plaintiff’s evidence as “exceedingly weak”, nevertheless decided with obvious misgivings to let the case go to the jury and overruled the motion to strike.

Malicious prosecution actions are not favored in Virginia. To maintain such an action, a plaintiff must allege and prove (1) that the prosecution was set on foot by the defendant and that it terminated in a manner not unfavorable to the plaintiff; (2) that it was instituted, or procured by the cooperation of, the defendant; (3) that it was without probable cause; and (4) that it was malicious. Bain v. Phillips, 217 Va. 387, 393, 228 S.E.2d 576, 581 (1976); Niese v. Klos, 216 Va. 701, 703, 222 S.E.2d 798, 800 (1976).

*755 When a defendant, in initiating a prosecution, acts in good faith upon the advice of reputable counsel, after a full disclosure of all material facts, he has probable cause to support his action. Probable cause serves as a complete defense to an action for malicious prosecution, even if the advice given by the attorney is wrong. Bain v. Phillips, supra, 217 Va. at 394, 228 S.E.2d at 581; Spitzer v. Clatterbuck, 202 Va. 1001, 1004, 121 S.E.2d 466, 468 (1961). The defendant must prove that he sought advice of counsel with an honest purpose of being informed of the law, that he made a full, correct and honest disclosure of all material facts known to him or which he should reasonably have known, and that he acted in good faith guided by the advice given by counsel. Noell v. Angle, 217 Va. 656, 660, 231 S.E.2d 330, 333 (1977). This defense usually presents a jury question unless reasonable minds cannot differ that advice of counsel has been established. Id. at 661, 231 S.E.2d at 333.

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Bluebook (online)
250 S.E.2d 357, 219 Va. 751, 1979 Va. LEXIS 165, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pallas-v-zaharopoulos-va-1979.