Wm. R. Moore Dry Goods Co. v. Mann

284 S.W. 42, 171 Ark. 350, 1926 Ark. LEXIS 446
CourtSupreme Court of Arkansas
DecidedJune 7, 1926
StatusPublished
Cited by6 cases

This text of 284 S.W. 42 (Wm. R. Moore Dry Goods Co. v. Mann) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wm. R. Moore Dry Goods Co. v. Mann, 284 S.W. 42, 171 Ark. 350, 1926 Ark. LEXIS 446 (Ark. 1926).

Opinion

Hart, J.,

(after stating the facts). It is earnestly-insisted by counsel for appellant that the evidence is not legally sufficient to support the verdict.

At the outset it may be stated that, to justify an action for malicious prosecution, both want of probable cause and malice must be shown. Keebey v. Stifft, 145 Ark. 8, and cases cited.

It is well' settled in this State that proof that the defendant in an action for malicious prosecution acted upon the advice of counsel learned in the law, or upon the advice of the public prosecutor, given after a full and fair statement of all the known facts, will be a complete defense to an action for malicious prosecution, because it is conclusive evidence of the existence of probable cause. Kansas & Texas Coal Co. v. Galloway, 71 Ark. 351; L. R. Price Mercantile Co. v. Cuilla, 100 Ark. 316; Laster v. Bragg, 107 Ark. 74; Price v. Morris, 122 Ark. 382; and Redman v. Hudson, 124 Ark. 26.

There has been some confusion in this State as to whether the rule with regard to the advice of* counsel as a defense to an action for instituting a criminal prosecution is applicable to an action for maliciously bringing a civil suit.

In the early case of Lemay v. Williams, 32 Ark. 166, it was held that, if a party makes a full statement of the facts to his counsel and acts under his advice in the prosecution of an attachment against the property of his. debtor, this would bé strong, but not conclusive, evidence of the want of malice.

In the subsequent case of Kansas & Texas Coal Co. v. Galloway, 71 Ark. 351, the holding in this case was overruled. It is true that the Galloway case was a suit for damages for malicious prosecution in instituting a proceeding for a criminal contempt; but no stress seems to have been laid upon this fact, and the holding in the Lemay v. Williams case was overruled.

It also appears from the later case of Harr v. Ward, 73 Ark. 437, that the same .rale applies with, regard to the advice of counsel as a defense to suits for malicious prosecution, whether based upon the institution' of criminal prosecutions or civil actions, and that the,.rule is that, where one fairly and fully communicates to his counsel all the facts within his knowledg’e- and uses reasonable diligence to ascertain the truth, and acts in good faith upon advice received from counsel,, this will constitute an absolute defense to an action for malicious prosecution.

In Stewart v. Sonneborn, 98 U. S. 187, in discussing the question, the court said: “It is abundantly settled that no suit can be maintained against an unsuccessful plaintiff or prosecutor, unless it is shown affirmatively that he was actuated in his conduct by malice, or some improper or sinister motive. Malice is essential to the maintenance of any such action, and not merely (as. the circuit court thought) .to the recovery of exemplary damages. Notwithstanding what has been said; in some decisions of a distinction between actions for criminal prosecutions and civil suits, both classes at the present day require substantially the same essentials,.- Certainly an action for instituting a civil suit requires not, less for its maintenance than an action for a malicious prosecution for a criminal proceeding.”

Indeed, there is more. reason for the rule in suits for malicious prosecution based upon civil actions than in those predicated upon criminal prosecutions.. Under our system of laws, the .advice of the prosecuting attorney might be sought before an arrest was made, but where a civil action was to‘ be. commenced the party originating it must act upon his own advice, or upon the advice of private counsel. When a person resorts to .the advice of reputable counsel learned in the law and makes a full and fair disclosure of the. facts in his possession, and in good faith acts upon the advice of counsel, this ought to; protect him from a suit, for damages for malicious prosecution. The reason is that the party acting has done all that he could he expected to do to enable him to act safely. If this course of conduct, did not protect him, no one 'would feel safe in seeking redress for his civil wrongs in the courts.

Generally, “want of probable ' cause” is a mixed question of law and fact, and should be submitted to the jury under proper instructioiis; but, where there is no dispute about the facts, it is the duty of the court to apply the law to them and declare their legal effect without the intervention of a jury.

There is no dispute about the facts in this case, and nothing from which a jury might legally infer that appellant was actuated by malice, express or implied, or that there was want of probable cause in bringing the chancery suit to set aside the deed from Chambers to Mrs. Mann. Appellant had obtained judgment against Chambers for $678.53 for merchandise sold by it' to him. Chambers had a tract of land of several hundred acres near Cotton Plant, Woodruff County, Arkansas; but an investigation by appellant showed that this was incumbered for about all that it was worth. Chambers had about 500 acres of land there, and it was incumbered for something between $25,000 and $50,000. Chambers also had a contract for construction work at Helena, and a large payroll. Appellant sent its claim to a firm of attorneys at Helena, and the claim was returned with a report that he was hopelessly insolvent. Later on Chambers was adjudged a bankrupt.

On May 2, 1922, appellant wrote Berry & Wheeler, a firm of reputable attorneys at Marion, in Crittenden County, Ark., to collect their account against Chambers. They informed appellant that Chambers owned about 600 acres of land in Crittenden County, Ark., and that he was trying to’ dispose of it. His residence was given' as Memphis, Tenn., and the attorneys were asked to attach the real estate, on the ground that Chambers was a nonresident. The letter concludes as follows:

“This account represents goods shipped this debtor in 1920. We are given no consideration whatever, we consider it a dangerous account, and we ask therefore that you will immediately look up the records on the real estate and attach the same. The writer will appreciate highly your writing us immediately, whether or not you will he able to subject this real estate to our debts.” On May 5,1922, Berry & Wheeler replied as follows:
“On April 4, 1921, he received a deed from Robert Mann and wife, Marie C. Mann, for 580 acres of land. Then on June 22, 1921 (three days before the deed to him was filed for record), he deeded this property to Marie Chambers Mann, which deed was not filed for record until January 18, 1922. The two deeds show exactly the same consideration. It appears suspicious to us that this occurred in this way, but we have no knowledge of any other facts constituting fraud. If Chambers has no other property, it would probably be advisable to institute suit in chancery to set aside the deed to Mrs. Mann for fraud, and advise that the suit, if one is to be started, be brought at once.”

Again, on May 18, 1922, Berry & Wheeler wrote to appellant, stating that it would be hard to get any other evidence of fraud except such as might be elicited on cross-examination of the interested parties.

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284 S.W. 42, 171 Ark. 350, 1926 Ark. LEXIS 446, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wm-r-moore-dry-goods-co-v-mann-ark-1926.