Thompson v. Schulz

240 S.W.2d 252, 34 Tenn. App. 488, 1949 Tenn. App. LEXIS 143
CourtCourt of Appeals of Tennessee
DecidedMay 17, 1949
StatusPublished
Cited by23 cases

This text of 240 S.W.2d 252 (Thompson v. Schulz) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thompson v. Schulz, 240 S.W.2d 252, 34 Tenn. App. 488, 1949 Tenn. App. LEXIS 143 (Tenn. Ct. App. 1949).

Opinion

FELTS, J.

In this case Schulz sued Thompson for damages for malicious prosecution. There was a general verdict and judgment for him for $1,000. Thompson appealed in error and insists that a verdict should have been directed for him because there was no evidence to negative probable cause for the prosecution or to show Schulz suffered any damage in consequence of it.

It grew out of Schulz’s failure to pay for labor and materials under a contract between him and Thompson. Thompson owned a lunch wagon — an old interurban street car; its wheels had been taken off and it had been set on a foundation and affixed to the soil. Schulz agreed to construct an addition to it — a room along its side. *492 Thompson agreed to pay him $754.00, one-third down, one-third when the materials were delivered, and the balance when the work was completed. Any changes under the contract were to be paid for as extras.

Thompson paid him $251.00 March 25, 1947, when the contract was signed, and about $18.00 a day or two later for some minor changes in the roof. A few days later, when the materials had been delivered, Thompson paid him $251.00 more, his payments to Schulz totaling $520.00; Schulz’s testimony, which was accredited by the jury, was that Thompson told him to build a room also at the end of the lunch wagon, that he told Thompson this would be extra and he proceeded to get the materials and construct this room, and that all the work was completed April 12, 1947.

Schulz’s bills for labor and materials in the construction ran to about $1,000.00, and he was unable to pay these bills as the work was being done. A few days before it was completed these unpaid laborers and mate-rialmen began to notify Thompson of their claims for liens on his property under the statute. Code Sec. 7914. He was incensed that he might have to pay them to protect his property. He employed a lawyer and they investigated the amount of the unpaid claims and undertook to get them settled.

He swore out a criminal warrant charging Schulz with violation of Code Section 7944a by misappropriating the $520.00 he had paid Schulz under the contract. This warrant was issued April 16, 1947. He talked to the sheriff “two or three times” urging the sheriff to arrest Schulz. On April 18, he went to Schulz’s home, found Schulz there, went to the sheriff’s office, got a deputy, took him to Schulz’s home, he arrested Schulz, and took *493 Trim to the county jail. He was there imprisoned till he could make bond for his release.

Thompson and his attorney then went to the office of the District Attorney-General and got one of his assistants to submit the matter to the grand jury. Thompson went before the grand jury and procured them to return an indictment against Schulz, charging him with fraudulently and feloniously using $530, alleged to have been paid him under the contract, for purposes other than payment for labor and materials in the construction, this being a felony, Code Sec. 7944a, punishable by imprisonment in the penitentiary.

When that case came on to be tried Thompson appeared as prosecutor and had his attorney help the Attorney-General prosecute Schulz. Thompson was the first and only witness introduced. On cross examination he was confronted with the bills Schulz had paid for labor and materials. They showed Schulz had not used any of the $520.00 for any other purpose but had paid out all of it plus $244.27 more, or $764.27, for labor and materials in the construction for Thompson. The trial judge then directed a dismissal of the case and entered a judgment acquitting Schulz of the charge. The present suit followed.

The law of malicious prosecution represents an adjustment of two paramount social interests: the interest of society to prosecute the guilty, and the interest of the individual not to be prosecuted wrongfully. It is not enough that the prosecution was unfounded; it must have also been malicious and without probable cause, to impose liability on the instigator of it. Poster v. Andrews, 183 Tenn. 544, 194 S. W. (2d) 337; P. W. Woolworth Co. v. Connors, 142 Tenn. 678, 222 S. W. 1053; Restatement, Torts, Vol. 3, pp. 380-411.

*494 Definitions of probable cause, however differently expressed, all agree in these two essentials: (1) The prosecutor must in good faith have honestly believed the accused was guilty of the crime charged; and (2) his belief must have been reasonable — based on facts and circumstances sufficient to lead an ordinarily prudent person to believe the accused was guilty of the crime charged. The prosecutor must have made the investigation an ordinarily prudent person would have made in the circumstances. Citty v. Miller, 1 Tenn. App. 1, 4-9; Citizens Sav. & Loan Corp. v. Brown, 16 Tenn. App. 136, 138-140, 65 S. W. (2d) 851, 853; Annotations, 5 A. L. R. 1688-1695, 65 A. L. R. 225; 34 Am. Jur., Malicious Prosecution, Secs. 49-51; Restatement, Torts, Vol. 3, Sec. 662, Comment g, p. 406.

Malice need not be ill will, but may be any motive other than a purpose in good faith to bring an offender to justice. Malice may be inferred from a motive to enforce payment of a debt or the doing of some other act the prosecutor wishes done. Poster v. Andrews, 183 Tenn. 544, 551, 194 S. W. (2d) 337, 340; Restatement, Torts, Vol. 3, Sec. 668.

Before bringing this charge against Schulz Thompson investigated the unpaid claims. But he did this not to see how much Schulz had paid, not to see whether Schulz' was guilty of the charge, but to see how much he was going to have to pay. He repeated: “I wasn’t interested in how much he had paid. ... I was interested in how much I was going to have to pay. ... I wasn’t interested in all that had been paid; I was interested in what he owed that I had to pay. Q. In other words, Mr. Thompson, you wanted to collect your money? A. No, sir, I wanted him to pay any bill. ’ ’

*495 Indeed, lie admitted he had found Schulz had paid some of the bills. After testifying about investigating the unpaid claims before April 16, when he brought the charge that Schulz had misused the $520 and paid none of it for labor or materials, he was asked on cross-examination if he had said that he had found that none of the bills had been paid, and he answered, “A. No, sir, I said we found the bills paid. ’ ’

He was cross-examined as to a statement that he had made to another witness:

“Q. You made that statement, that you were going .to put him (Schulz) in the penitentiary if it took your last dollar?' A. No, sir.
“Q. What statement did you make? A. I may have said $1,000.
“Q. You were willing to spend that much to put him there? A. That is where he ought to have been.”

So we think the jury could have reasonably found from the evidence that Thompson had no reasonable ground to believe, and in fact did not believe, that Schulz was guilty of the felony charged; that he made the charge to force Schulz, if possible, to pay the unpaid claims and discharge the liens on his property; and that the prosecution was without probable cause and malicious.

There is no merit in the insistence that Schulz suffered no damages from the prosecution.

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Bluebook (online)
240 S.W.2d 252, 34 Tenn. App. 488, 1949 Tenn. App. LEXIS 143, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thompson-v-schulz-tennctapp-1949.