Paul v. Fargo

82 N.Y.S. 369
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMay 12, 1903
StatusPublished
Cited by14 cases

This text of 82 N.Y.S. 369 (Paul v. Fargo) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Paul v. Fargo, 82 N.Y.S. 369 (N.Y. Ct. App. 1903).

Opinions

McLENNAN, J.

The learned trial court ruled and decided, in substance, that in an ordinary civil action, where the person or property of the defendant is not interfered with, as by injunction, attachment, arrest, or some other provisional remedy, the defendant, although successful, is not entitled to maintain an action of malicious prosecution against the plaintiff, notwithstanding such action may have been instituted and prosecuted" without probable cause and maliciously, and resulted in damage to the defendant in excess of the costs recovered by him. Such ruling presents the only question which need be considered upon this appeal.

The facts, so far as material, may be briefly stated: The plaintiff, who had been in defendant’s employ continuously in different capacities from the year 1887, was, about the year 1891, promoted to the position of agent, delivery and transfer clerk at its station or office in the village of Norwood, N.. Y., at a salary of $100 per month. On the 12th day of May, 1897, while the plaintiff was so employed by the defendant, one F. S. Smith, who was cashier of the State Bank of Nor-[370]*370wood, delivered to him, taking his receipt therefor, a package containing bank bills amounting to $i,ooo, which was to be forwarded and delivered by the defendant to the Seaboard National Bank of the City of New York. The defendant claimed that through the fault of the plaintiff such money or package was never sent to or delivered in New York, but that tie converted the same to his own use. Thereafter, and on or about the 4th day of October, 1898, the defendant commenced an action for conversion against the plaintiff in the Supreme Court, laying the venue in St. Lawrence county, and alleging, in substance, that the plaintiff, instead of sending the money received by him as its agent to New York, as it was his duty to do, wrongfully and wickedly converted and appropriated the same to his own use. The plaintiff answered in that action, and admitted that he received the money as agent for the defendant, but alleged, in substance, that he sent it to the New York bank in ttie usual course of business, and that he fully discharged his duty in the premises. The issue so raised by the pleadings in that action was tried before the court and a jury in January, 1899. The jury rendered a verdict in favor of the defendant (this plaintiff). Thereafter such proceedings were had that the verdict was set aside by the presiding justice, and a new trial was ordered. In May, 1901, such new trial was had, which also resulted in a verdict in favor of the defendant (this plaintiff), and upon such verdict a final judgment was entered, dismissing the plaintiff’s complaint in that action, with costs.

It is alleged in the complaint in the action 'at bar, and there is proof tending to show, that the costs and expenses necessarily incurred by the plaintiff in defending the action brought against him by the defendant largely exceeded the costs 'awarded by the final judgment; also, that the bringing of such action injured the plaintiff in his business and reputation. We are also of the opinion that the evidence contained in the record before us is of such a character as to make the question whether or not such action wa's brought maliciously and without probable cause one of fact for the jury. So that, for the purposes of this appeal, we must assume that the defendant commenced an action for conversion against the plaintiff, maliciously and without probable cause, which resulted favorably to the plaintiff, and that he sustained injury thereby in excess of the amount of costs awarded to him by the final judgment. No order of arrest was obtained against .the plaintiff or attachment against his property, or any other provisional remedy resorted to, in the action of conversion brought by the defendant against the plaintiff.

Concededly, if a person brings a civil action against another maliciously and without probable cause, which terminates favorably to the defendant, and an order of arrest is procured under which the defendant is arrested, or if, by virtue of a writ of replevin, warrant of attachment, injunction, or other provisional remedy issued therein, his property is taken or interfered with, the defendant may maintain an action for malicious prosecution against the plaintiff to recover the damages sustained by him. Brounstein v. Sahlein, 65 Hun, 365, 20 N. Y. Supp. 213; Burhans v. Sanford, 19 Wend, 417; Bump v. Betts, Id. 421. The doctrine of these cases, and many others which [371]*371might be cited, decided by the courts of this and other states, was expressly approved in Willard v. Holmes, 142 N. Y. 492, 37 N. E. 480. In that case the court said, per Gray, J.:

“This action was brought to recover damages for the malicious prosecution of a civil action. Whether such an action may be maintained, regardless of whether the plaintiff in a former action had interfered with either the person or property of the defendant therein, is a question we are hot called upon to determine. * * :S In this country the authorities are not agreed upon the doctrine governing such actions, as may be seen by reference to the cases collated in the American and English Encyclopaedia of Law (volume 14, p. 32). But I am prepared to assume that there may be satisfactory authority for holding that where a party has been subjected to some special or added grievance, as by an interference with his person or property, in a civil action brought without probable cause, he may maintain a subsequent action to recover any legal damage which he avers, and is able to show, to have been occasioned to him. See Bump v. Betts, 19 Wend. 421; Whipple v. Fuller, 11 Conn. 582 [29 Am. Dec. 330]; Potts v. Imlay, 4 N. J. Law, 330 [7 Am. Dec. 603]; Mayer v. Walter, 64 Pa. 283; and Cooley on Torts, p. 187. The action generally is not to be viewed with any favor; for, in theory of law, the costs awarded by the statute to the successful defendant are an adequate compensation to him for all damages.”

In that case the plaintiff’s property had been attached in the former action. We think the language quoted fairly indicates that the court was of the opinion that for the bringing of an ordinary civil action, even if brought without probable cause and maliciously, if the person or property of the defendant was not interfered with, as by arrest, attachment, replevin, injunction, etc., an action for malicious prosecution will not lie in favor of the defendant, although successful in such, action. That such was its opinion is further indicated by the decision of the court in the same volume, in Ferguson v. Arnow, 142 N. Y. 580, 37 N. E. 626. The court said, per Earl, J.:

“A party who brings an action for malicious prosecution against a plaintiff who has been unsuccessful in a civil action should not be permitted to recover without very clear and satisfactory proof of all the fundamental facts constituting his case. Such actions should not be encouraged. The costs awarded to a successful defendant in a civil action are the indemnity which the law gives him for a groundless prosecution. Public policy requires that' parties may freely enter the courts to settle their grievances, and that they may do this without imminent exposure to a suit for damages in case of an adverse decision by judge or jury.”

The court further said:

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Bluebook (online)
82 N.Y.S. 369, Counsel Stack Legal Research, https://law.counselstack.com/opinion/paul-v-fargo-nyappdiv-1903.