CLAIM AGAINST MALICIOUS PROSECUTION AND LIABILITY OF ATTORNEY/LAWYER

By:
SYEDA TOOBA AKHTAR*

Abstract:

The element of false and frivolous litigation makes the courts heavily burdened which results in causing delay in disposal of real litigation and “ Justice delayed is justice denied ”. False and frivolous litigation can be vanished, if law of tort is properly exercised against it. If false and frivolous litigation is vanished or at least it is minimized, it would certainly save precious time of courts of law which would resultantly expedite the disposal of real litigation. Unfortunately, law of tort against malicious prosecution is not commonly exercised in Pakistan due to many reasons. The main reason is the lengthy proceedings in courts. The Supreme Court of California has introduced a new a trend in law of tort pertaining to malicious prosecution. Holding that in an unsuccessful lawsuit brought with malice and without probable cause, not only the plaintiff but his/her lawyer/attorney is also liable in a subsequent suit for malicious prosecution. Our legal society is not familiar with this aspect of lawyer’s liability. This article discusses this new aspect of liability of a lawyer/attorney. At the same time it does not welcome this liability.

Introduction:

Malicious prosecution or malicious civil action means the filing of an unsuccessful malicious criminal/civil case against someone without reasonable and probable cause. The malicious prosecution or action must be ended, and the plaintiff, must show it was groundless, either by his acquittal or by obtaining a final judgment in his favor in a civil action. The remedy for a malicious prosecution is an action on the case to recover damages for the injury sustained. For malicious prosecution, action lies against the prosecutor and even against the informer. But grand jurors are not liable to an action for a malicious prosecution for information given by them to their fellow jurors, on which a prosecution is founded. Such action lies against a plaintiff in a civil action who maliciously sues other [1]

The liability of a lawyer:

Traditionally, only the unsuccessful plaintiff or complainant in a previous case who instituted the suit or complaint “ maliciously ”  and without “ reasonable and probable cause ” was liable in a subsequent suit for damages on the basis of malicious prosecution.

But, in wake of certain rulings of the superior courts including lower Appellate Court and California Supreme Court, a claim for malicious prosecution/malicious civil action can be brought even against the lawyer for plaintiff/complainant.

Scores of California cases have held that if a lawsuit (or any cause of action within a lawsuit) is brought with “malice” and without “probable cause,” and the judgment is against the plaintiff/complainant, both plaintiff/complainant and his or her lawyer may find themselves the unfortunate defendants in a subsequent lawsuit for malicious prosecution. [2]

The unanimous court now says that a lawyer who discovers evidence that undermines a claim in the suit has an affirmative obligation to persuade the client to drop the claim or withdraw from the case, or else both (lawyer and his client) will face the civil liability for malicious prosecution. [3]

The increasing concern over the congestion of the Judicial System has produced little discussion focusing on the critical role that the lawyers have played in the tremendous growth of litigation. Lawyers contribute to the overburden by various means including by instituting merit less actions.

The theory behind such kind of shocking rulings is that the “fundamental interest’ protected by malicious prosecution tort is “freedom from unjustifiable and unreasonable litigation ” and it is the filing of lawsuit which sets the wheels of justice in motion. To curb such kind of false and frivolous litigations and to protect the “fundamental interest” provided by the tort of malicious prosecutions the Supreme Court turns the law of malicious prosecution on lawyer’s head. [4]

Ingredients:

By the consensus of opinions of Courts, it is well-settled that to establish a claim for malicious prosecution (malicious abuse of process) against a lawyer, a plaintiff must prove that the lawyer;

(1)   knew the client’s claim was baseless and either;

(a) knew the client was pursuing litigation for an improper purpose or ;

(b) litigated for the lawyer’s own improper purpose. [5]

In other words, absent a lawyer having his or her own “improper purpose” in pursuing a claim, a lawyer cannot be held liable for the initiation, continuation, or procurement of litigation. The existence of probable cause and of an improper purpose is assessed separately for a lawyer and for the client on whose behalf the civil proceedings was brought. [6]

Thus the lawyer may have a defense even to such a claim where his/her client does not.

So far as the element of “probable cause” is concerned it exits if the lawyer has a reasonable belief that the facts on which the claim is based can be established to the satisfaction of the trier of fact (jury) and has a reasonable belief that there is a sound chance that under those facts the claim may be held valid. But “probable cause” in this context is determined solely based on the facts known to the lawyer at the time the complaint/suit was filed. When there is no dispute as to what facts were so known, the existence of probable cause is an issue of law to be decided by the Court, not a jury issue. [7]

Nonetheless, even if a lawyer “has no probable cause and is convinced that his client's claim is unfounded, he is still not liable [for wrongful use of civil proceedings] if he acts primarily for the purpose of aiding his client in obtaining a proper adjudication of his claim. The fact that the lawyer is earning a legal fee does not constitute an improper purpose for the lawyer’s involvement. [8]

Modified to the “improper purpose” the standard is "whether any reasonable attorney would have thought the claim tenable" [9] a standard that is satisfied if the issues presented in the underlying action were arguably correct, even if it was extremely unlikely the client would win. For this purpose, the nature and extend of lawyer’s subjective research and investigation of facts is irrelevant. [10] If the court determines that the prior action was not objectively tenable and thus concludes that the action was brought without probable cause , evidence of the extent of a lawyer's legal research may be relevant to the further question of whether the prior action was instituted with malice, but if the court finds that the prior action was in fact tenable, probable cause is established than the claim of malicious prosecution would fail, without regard to the adequacy or inadequacy of the lawyer's legal research efforts.[11]

As stated above, if the trial court concludes that the prior action was not objectively tenable, evidence that the defendant lawyer did not subjectively believe that the action was tenable would clearly be relevant to the question of malice. In as much as lawyer who does not have good faith belief in the tenability of an action will normally assume that a court is likely to come to the same conclusion, the liability of a lawyer in a malicious prosecution tort will continue to deter lawyers from filing actions which they do not believe are legally tenable. [12]

The techniques and strategies which may be useful in a claim for malicious prosecution against a  lawyer:

The Former defendant who prevailed in an unjustified lawsuit is now plaintiff in a suit for damages on the basis of malicious prosecution, and the target is the former plaintiff’s lawyer.

The theme will generally be that the lawyer-defendant has violated a sacred public trust which bestows the power to file and prosecute legal actions. Counsel for plaintiff will want to show that that defendant is a threat to the judicial system and deserving the indignation and contempt of decent society. The defense will usually attempt to show that the lawyer-defendant was properly engaged in the highest calling of the profession, i.e., to represent his client zealously. Defense counsel will argue that his client acted "reasonably" under the circumstances.
Motions in limine:

A motion in limine will prevent the defense from introducing " new " evidence which may not have been presented at the former trial. Plaintiff in an action for malicious prosecution must prove that the prior judicial proceeding terminated in his favor, and it is essential that the defendant not be given the opportunity to re-try that case. That issue must remain closed. Therefore, it is necessary to prevent the defense from questioning the findings which form the foundation of the malicious prosecution case. The trial judge must be persuaded that principles similar to res judicata prevent the re-litigation of the prior case [13]

To Jury:

Ironically, jurors whom plaintiffs usually avoid (e.g., insurance adjusters, law enforcement types) may be the most favorable to plaintiff in an action for malicious prosecution. Law enforcement types will be hard on the lawyer who "broke the rules." Insurance adjusters have an innate bias against lawyers who present unfounded or "nuisance" cases for settlement. Persons who are generally critical of the litigation process will be inclined to punish an errant lawyer. The plaintiff's lawyer should ask each juror such questions as;

"Do you agree that a lawyer should be held accountable for harm that he causes by his wrongdoing?"

"Do you believe that a lawyer may do whatever he wants in representing a client, regardless of whether it is right or wrong, reasonable or unreasonable?"

 "Are you willing to judge the conduct of this lawyer and decide whether his conduct went beyond what the law allows him to do?" [14]

Presenting Plaintiff’s case:

Since the re-litigation of the former lawsuit is prohibited, the favorable termination of that case is the starting point of the malicious prosecution case. [15]

Therefore, it is suggested that, before plaintiff's first witness is called, plaintiff should offer, as Exhibit "1", the judgment in the underlying action. The witnesses for plaintiff should establish plaintiff's obvious innocence of the defendant's accusations to fuel the jury's outrage. The plaintiff's attorney needs to convey the clear implication the lawyer-defendant was acting with a knowing and conscious disregard for the facts and the rights of the plaintiff. The greater the amount of evidence favorable to the plaintiff which was available to the lawyer-defendant (whether he discovered it or not), then the greater the inference that the proceedings were initiated for the improper purpose of forcing a settlement which had no relation to the merits of the claim [16]

Expert Witnesses:

In a malicious prosecution case against a lawyer, the test for probable cause is whether the case was tenable, meaning "objectively reasonable." In other words, if no reasonable (prudent) lawyer would have believed that there was a legitimate basis for prosecuting the lawsuit, there was no probable cause. Although "probable cause" is a pure question of law, whether it existed is a pure question of fact. That question of fact, however, is to be determined solely by the court. It is thoroughly established that experts may not give opinions on matters which are essentially within the province of the court to decide. [17]

Accordingly, no experts may testify on the probable cause issue. No court has ruled, however, that experts may not testify on the issue of malice. In fact, the Supreme Court stated that the extent of a defendant lawyer's investigation and research may be relevant to the further question of whether or not the lawyer acted with malice [18]

Thus, a lawyer's failure to conduct an investigation of the facts and law reasonable under the circumstances in a case which turns out to lack probable cause may be enough in appropriate circumstances to establish malice. Therefore, counsel for plaintiff should offer expert testimony by a lawyer who can explain what research and investigation "reasonable" lawyers would have done, and why the given conduct was improper, unethical or unreasonable. The expert should also be used to educate the jury on the subject of such matters as settlement, public policy and improper motives for settlement. From the defense prospective, an expert witness will be necessary to counter the plaintiff's arguments. [19]

Damages:

The easiest item of compensatory damages to prove is the amount of lawyer's fees which the plaintiff paid in successfully defending the underlying claim. It may be effective to ask the plaintiff on direct examination whether the payment of the fees resulted in some form of deprivation or humiliation. For example, "I had to borrow the money." [20]

Plaintiff is entitled to be compensated for any detriment or harm to his reputation, including any impairment of his social and business standing. Newspaper articles and pictures are persuasive proof of the widespread impact of the defamatory allegations.[21]

Loss of reputation, however, is difficult to prove since friends and acquaintances of the plaintiff will be reluctant to testify that they disassociated themselves as a result of the accusations in the underlying lawsuit. In fact, the defense could very well use these friends and associates against the plaintiff by having them testify that they never believed the allegations, and their relationship with plaintiff did not change as a result. Emotional and mental suffering will usually comprise a large element of damages.

The Supreme Court has held that plaintiff may recover damages for any mental suffering or emotional distress suffered by him. [22]

The word "any" is the key because it permits recovery based upon the plaintiff's particular disposition.

Summation:

For summation, it is necessary to call in the "commitments" which were pledged earlier by the jurors. Among these "commitments" will be the obligation to judge right from wrong, moral from immoral and justice from injustice. As in other cases, a central theme should be "the jury as the voice of the community". By casting the jurors in their role as "guardians of justice", the power to regulate the litigation process is placed in their hands. The jury can be told: "If you want to send a message to the lawyers in our society that this wrongful use of our system of justice will not be tolerated, tell them with your verdict. You have the power to set the standard of conduct for lawyers in our society." This is the springboard into the argument of the deterrent value of punitive and exemplary damages. [23]

So these are the certain techniques and strategies which may be useful in the actual trial of the case. Further the common perception that the litigation explosion is caused by false and frivolous litigation may work in plaintiff's favor. A verdict for plaintiff is more likely if the jurors believe that their verdict will help put an end to improper use of the courts.

Advice for the plaintiffs and their lawyers in the wake of such liability:

(a)     Do legal research on all claims.

(b)     Pursue fraud claims with extreme caution.

(c)      When arguing the issue of objective tenability to judge, emphasize that even a reasonable (prudent) lawyer may sometimes disagree and the standard is - "Only those actions that any reasonable attorney would agree are totally and completely without merit may form the basis for a malicious prosecution suit." Thus, the test is essentially whether "all" reasonable attorneys would agree.[24]

(d)     If sued for malicious prosecution, immediately make an anti-SLAAP motion. It is relatively new weapon to stave off a frivolous malicious prosecution claim available under California Code of Civil Procedure. Challenge to an action for malicious prosecution under California Code of Civil Procedure may be filed within 60 days after the complaint is served during which time all discovery is stayed unless "good cause" is shown. In other words the plaintiff will have to state prima facie case(and malice is often hard to often hard to state with any specific evidence or even a reasonable inference) .And unless the plaintiff establishes "reasonable probability" of success on the merits, the case is dismissed with an award of lawyer fee to the prevailing defendant. [25]

(e)     Write your California Senator and Representative and urge them to change the law!

The net effect:

These rulings (which make a lawyer liable for an action of malicious prosecution) have not been welcomed by the lawyers.

It just gives license to defense counsel to threaten an action for malicious prosecution when plaintiff’s lawyer will not simply buy the bullshit served on a silver plate (as is the case with many a defense). [26]

To curb abuses after the initiation of lawsuit, courts have other remedies-sanctions than to adopt this. Such decisions will, without doubt, drive more and more lawyers away from plaintiff representation….to the detriment of all those little people who need a little justice sometimes in their lives. As a practical matter the Supreme Court’s expansion of malicious prosecution liability will serve as a terribly lopsided burden imposed on lawyers. The new rules effectively force lawyer to drop the claim, or cases altogether. If the plaintiff manages to obtain victory and justice in court, defense lawyer cannot be sued for maliciously filing an appeal. Is this Homer Simpson justice? [27]

The New Jersey Superior Court Appellate Division, however, placed welcome and strict limitations on the right of a plaintiff to bring malicious prosecution/malicious abuse of process action against lawyers. [28]. 

The decision in Lobiondo v. Schwartz, 1st August 2007, by stating the matters necessary to be proved to make a lawyer liable for such a claim (already discussed), will make it far more difficult to successfully pursue a malicious prosecution claim against a lawyer. Before this, such claims were frequently brought for the improper purpose of forcing the lawyer to withdraw from the case.

References:

1.         Quoting from the Supreme Court of Canda decision in Nelles V. Ontario, 1989 2 SCR 170.

2.         Dirmity Z. Tsimberg, Will Lawyers Drop Plaintiff Cases? California Weekly Law Journal, July 2001.

3.         Zamos V. Stroud ( Cal. April 19,2004 )

4.         David W. Pollack, Theme behind lawyer’s liability. University Of Chicago Law Review, Vol. 44, No: 3 (P. 619)

5.         Lobiondo V. Schwartz, 2007 WL 2188600 ( N.J App.2007)

6.         Ibid.

7.         Dirmity Z. Tsimberg, Will Lawyers Drop Plaintiff Cases? California Weekly Law Journal, July 2001

8.         Lobiondo V. Schwartz, 2007 WL 2188600 ( N.J App.2007)

9.         Sheldon Appel Co. v. Albert & Oliker, 1989, 47 Cal.3d at p.886

10.       Ibid at p.885

11.       Ibid at p.868

12.       Ibid at p.881-882

13.     Albertson v. Raboff (1956) 46 Cal.2d at p.39

14.       Jennifer Brown Shaw and Carolyn  Burnett, Cases Against Lawyers.1999 Vol-3, p 347

15.      Albertson v. Raboff (1956) 46 Cal.2d at p.375

16.       Jennifer Brown Shaw and Carolyn  Burnett, Cases Against    Lawyers.1999 Vol-3, p 348

17.      Sheldon Appel Co. v. Albert & Oliker , 1989, 47 Cal.3d at p. 863, 884

18.       Ibid at p.883

19.       Jennifer Brown Shaw and Carolyn  Burnett, Cases Against  Lawyers.1999 Vol-3, p 348

20.      David W. Pollack, Theme behind lawyer’s liability. University Of Chicago Law Review, Vol. 44, No: 3 (P. 619)

21.      Blair v. Williams (1952) 109 Cal.App.2d at p.516

22.      Bertero v. Natn'l General Corp. (1974) 13 Cal.3d at p.558

23.      David W. Pollack, Theme behind lawyer’s liability. University Of Chicago Law Review, Vol. 44, No: 3 (P. 619)

24.      Jennifer Brown Shaw and Carolyn  Burnett, Cases Against  Lawyers.1999 Vol-3, p 352

25.      Ibid at p.357

26.      Ibid

27.      Ibid

28.      Lobiondo V. Schwartz, 2007 WL 2188600 ( N.J App.2007)

Bibliography:

Cases:

1.         Nelles V. Ontario, 1989 2 SCR 170

2.         Lobiondo V. Schwartz, 2007 WL 2188600 ( N.J App.2007)

3.         Sheldon Appel Co. v. Albert & Oliker, 1989, 47 Cal.3d

4.         Blair v. Williams (1952) 109 Cal.App.2d

5.         Bertero v. Natn'l General Corp. (1974) 13 Cal.3d

6.         Zamos V. Stroud ( Cal. April 19, 2004 )

7.         Albertson v. Raboff (1956) 46 Cal.2d

Books:

1.      Jennifer Brown Shaw and Carolyn  Burnett, Cases Against  Lawyers.1999 Vol-3

Articles & Journals:

1.         Dirmity Z. Tsimberg, Will Lawyers Drop Plaintiff Cases? California Weekly Law Journal, July 2001.

David W. Pollack, Theme behind lawyer’s liability. University Of Chicago Law Review, Vol. 44, No: 3



*.  Miss Syeda Tooba Akhtar, Lecturer Department of Law. University of Sargodha.