Koski v. Vohs
Koski v. Vohs
Opinion of the Court
On November 14, 1979, plaintiff, Aldred Koski, started a suit for malicious prosecution against seven defendants. Five of these were or had been Madison Heights police officers, and the others were the Oakland County Prosecutor (L. Brooks Patterson) and an investigator in his office. Eventually, in November, 1982,
Plaintiff appeals as a matter of right. For the reasons to be indicated, we affirm the grant of a directed verdict with respect to defendants Kenneth Vohs, Joseph D. Whitefield and the Oakland County Prosecutor. With respect to defendant Danny R. Daniel, we reverse and remand for trial on the merits.
Plaintiff Koski worked for many years as a news reporter for various newspapers and radio stations. For three years, he worked for the Michigan State Police Troopers Association, where his duties included editing the Trooper, a monthly tabloid about the State Police. From this job, plaintiff got the idea to publish public relations magazines for local law enforcement agencies and began Monitor Publications, Ltd., in 1973.
In early 1974, plaintiff published a magazine for the Madison Heights Police Officers Association (MHPOA). Through 1975, he published magazines for 10 other suburban Detroit law enforcement agencies. On August 18, 1975, plaintiff entered into a contract to produce a second magazine for the MHPOA. This contract was signed on behalf of the MHPOA by Gerald Crossley, president, Herbert Allen, vice president, and Dennis Carley, secretary-treasurer.
To raise funds for the magazine, Monitor personnel solicited advertising from area merchants. The contract provided that the advertising revenues were to be deposited in an association bank account and held "in trust to insure publishing costs, expenses and against the profit-split”. MHPOA
Collection of advertising revenues was to be handled in three ways: (1) Monitor personnel would receive cash or a check from the advertiser at the time of solicitation of the advertisement; (2) the advertiser could mail a check to the police station; or (3) the advertiser could opt to pay upon publication. The plan was that at the end of each day that revenues were received, plaintiff would go to the police station, make a log of each payment and determine how much was to be paid over to Monitor.
Plaintiff sold his first account in September, 1975. According to the terms of the contract, the magazine was to be published within 12 weeks of the first sale. However, plaintiff ran into difficulties. First, he was faced with falling advertising sales because of competition from a person representing the Fraternal Order of Police or the Metropolitan Club. Plaintiff’s efforts to invoke |f 6 of his contract and to have the police department mediate the dispute did not result in a satisfactory result. Plaintiff tried to sell bumper stickers to raise the needed revenues. Second, plaintiff had some sort of a falling-out with Officer Carley, the association’s secretary-treasurer, which resulted in further expense payments to Monitor being terminated.
Nevertheless, by December 5, 1975, plaintiff had the magazine covers prepared and had 11,500
On July 21, 1976, plaintiff had a meeting with Officer Thomas Linville, who had become president of the association earlier that year, and other officers in the association. Plaintiff claims that Officer Carley was away on vacation at that time, but that fact is in dispute. Lieutenant Jerry Sloan, a long-time friend of plaintiff and the brother of then Chief of Police, William Sloan, attended the meeting as plaintiff’s representative.
At the meeting, publication of the magazine, an accounting and release of funds to plaintiff were discussed. Plaintiff asserted that the association account should contain at least $10,000. Officer Linville, however, indicated he did not know what funds were in the account. This would suggest that Officer Carley was not present with his books. Plaintiff claimed that the upshot of the meeting was that an accounting would be immediately forthcoming. Officer Linville, however, believed that the accounting was to follow publication. Nothing further occurred until September, 1976, when Officer Carley gave plaintiff a check and promised an accounting. Neither publication nor the accounting was performed by December, 1976, when the parties agreed that plaintiff should resume advertising sales.
In September, 1976, Officers Linville and Carley went to the Oakland County Prosecutor’s office to
In March, 1977, the association made a complaint to the Attorney General’s office. A meeting was held with plaintiff and officers of the association present. Joseph Whitefield, who was then assistant chief of police, attended at the request of Chief Sloan. The matters discussed at the meeting included plaintiff’s lack of a charitable trust license, failure to circulate the Monitor magazine, and plaintiff’s claim that money was stolen from the association account. The meeting culminated with a deadline being set for plaintiff to publish the magazine.
Plaintiff had the magazine printed in July, 1977. In August, plaintiff received a call from defendant Officer Kenneth Vohs, who was the new association president. Officer Vohs explained that the printing bill was $3,600 more than expected and that, according to Officer Carley, the association could not pay it without running out of funds. Furthermore, Officer Vohs said that Officer Carley had told him that the association had already paid its share and any excess was for plaintiff to pay. Plaintiff responded that there should be plenty of funds and requested that Officer Vohs check with Officer Carley, who was still the secretary-treasurer. Plaintiff also stated that he was collecting the pay-on-publication accounts so that about $2,-000 in additional revenues should be coming in. Plaintiff claimed that the additional billing from the printer was due to increased costs over the original estimate.
On August 29, 1977, after discussing a possible
While Officer Vohs told plaintiff that businessmen were complaining about nonproduction of the magazine, he did not tell plaintiff that on August 15, 1977, there had been a complaint about plaintiff’s endorsing a check made payable to the association. Mr. Jackson, of Spalding DeDecker and Associates, a purchaser of advertising in the magazine, told Officer Vohs that on August 4, 1977, a man fitting plaintiff’s description had come in, identified himself as Dennis Carley and requested a check made out to Monitor Magazine. Jackson had refused the request because he understood the check was supposed to be made out to the association, but he had later mailed a check for $100 to the police station. After getting this report from Jackson, Officer Vohs returned to the station and spoke with secretary Elsie Keil. She stated that on or about July 26, 1977, plaintiff had come to the station and asked if there was any mail. She had a check from McDonald’s, but refused to hand it over. Plaintiff then made a telephone call to Lieutenant Sloan and handed the receiver to Mrs. Keil.
Officer Vohs turned in the incident report to Joseph D. Whitefield, who had become chief of police on August 15, 1977. Because of other obligations, Chief Whitefield did not look at the incident report until after Labor Day. Then, noting that the association and Lieutenant Sloan were involved, Chief Whitefield went to the city manager and suggested that an outside agency be called in to investigate the incident. The city manager agreed. Whitefield and the city manager, together with officers of the association other than Vohs, met with Oakland County Prosecutor Patterson on September 9, 1977. Chief Whitefield requested a complete investigation of the incident report, as well as of all officers involved with the Monitor Magazine. Defendant, Danny R. Daniel, a criminal investigator with the prosecutor’s general investigations division and a former police officer and deputy sheriff, was given the incident report and
Defendant Daniel made an investigative report which, in brief, states as follows. Daniel interviewed Mrs. Keil and Jackson, confirming what had been earlier related to Officer Vohs. On October 6, 1977, Daniel met with Officer Carley, examined the association’s record books and requested a list of advertisers that appeared in Monitor Magazine, but not in the record books. On October 18, 1977, Officer Carley supplied eight names, including Oakland Dodge and Spalding DeDecker. Daniel spoke with personnel from Oakland Dodge and was told that a man fitting plaintiff’s description had picked up a check for $420 made payable to the association and dated December 6, 1976. On November 7, 1977, Daniel obtained and served a search warrant for the Monitor Magazine account at Michigan National Bank. At the time of service, Daniel discovered that the Spalding DeDecker check had been cashed, but not deposited. Later the same day, Daniel spoke with Lieutenant Sloan, who explained that, when he talked with Mrs. Keil on July 26, she had not said that the mail contained a check, but had told him the envelope was addressed to Monitor Magazine. He had then told her that plaintiff was Monitor Magazine and she would have to give him the envelope. In her statement to Daniel, Mrs. Keil, however, denied that she had read the address to Sloan or that the envelope was made out to other than the association. Daniel also interviewed Rick Dowell, the bank teller who accepted the Spalding DeDecker check. Daniel claimed that Dowell had admitted that the endorsement was irregular, but had stated that he cashed the check because he thought that plaintiff was a friend of the bank manager.
In early November, 1977, Daniel visited plaintiff at his home. Daniel verified that plaintiff had taken the Oakland Dodge check to the bank and stated that Chief Whitefield and the city manager had made a complaint. Daniel did not mention Officer Vohs’ incident report. Plaintiff told Daniel that he had all the Monitor records and Daniel was welcome to look at them. Daniel declined. Plaintiff claims that Daniel said the records were not important and he did not want to look at them. Daniel asserts that the records were placed haphazardly in big cardboard boxes.
The day after Daniel’s visit, plaintiff was called by Officer Vohs, who said that he did not want to give plaintiff trouble and, if plaintiff would pay the printer and get the magazines released, they could go their separate ways and the association would not pursue a breach of contract action. Plaintiff respondend that he had already paid more than enough. After Officer Vohs hung up, plaintiff called Daniel to complain about the prosecutor’s office being used as a collection agency. In testifying at trial, Officer Vohs claimed that he had not really connected his call with any criminal proceeding.
On November 22, 1977, plaintiff went to the prosecutor’s office with his attorney to give a statement to Daniel. After being given his Miranda
Apparently, Daniel was convinced in his mind that plaintiff had committed a crime, even though he had neither made independent examination of the books and records of the MHPOA and Monitor Magazine nor sought to obtain an audit. To him, the crucial fact was that he did not believe plaintiff was authorized to sign the checks. Daniel took his information to the chief of warrants and persuaded that assistant prosecutor to authorize a warrant for plaintiff’s arrest. At trial, Daniel testified that he believed that he submitted information on four checks: from Oakland Dodge, McDonald’s, Parish Publications and Spalding DeDecker. The warrant, however, did not apply to the McDonald’s check, which had been made payable to "Monitor/MHPOA”. It should be noted, though, that on November 22, 1977, Daniel told plaintiff that there was no problem with the McDonald’s check.
That afternoon, a lengthy article appeared in the Daily Tribune about plaintiff’s arraignment and the dispute over publication of the Monitor Magazine. The article included statements attributed to Prosecutor Patterson. Plaintiff maintains that he was arraigned shortly before 10:30 a.m., which was the deadline for the Daily Tribune. Articles appeared the following day in the Free Press, Madison News and Oakland Press.
Plaintiff’s preliminary examination was begun on December 19, 1977. Officer Carley and Mrs. Keil testified for the prosecution. Mr. Hensley, from Oakland Dodge, also testified, but was unable to identify plaintiff as the man who had picked up the check (although Mr. Hensley had identified plaintiff’s photograph for Daniel during the investigation). The examination was adjourned to a later date, at which time Officer Carley did not appear to testify and Judge Bolle dismissed the complaint for lack of prosecution.
It was represented that Officer Carley had remained home to care for a sick son, since his wife had already left for work and he had not been able to contact the prosecuting attorney’s office until
In the meantime, events were taking an unexpected turn within the association itself. The audit of the association account, requested by plaintiff and Chief Whitefield and perhaps by Daniel and others, was finally started. When Officer Ken Baughman was elected secretary-treasurer in October, 1977, he found the records that he received from Officer Carley in a state of such disarray that he felt incapable of sorting things out himself. On behalf of the association, he had certified public accountant David Mutschler hired to do the audit. Mutschler was unable to complete the audit because too many records were missing, but he did reach several conclusions, one being that Officer Carley had written himself unauthorized checks. All in all, Officer Carley had individually received almost $8,000. Carley had written checks to himself as early as September 25, 1975. As to plaintiff, while Mutschler found some inconsistencies, he could not determine from the available records either that plaintiff had done anything wrong or that plaintiff was entitled to the checks taken.
On March 16, 1978, Officer Carley talked to Officer Vohs, who had become president of the association in July, 1977, and confessed to taking money from the association. Officer Vohs told Officer Carley to go home immediately and he would contact the chief of police. A meeting was held at Chief Whitefield’s house and, on March 17,
In spite of the fact that Carley confessed to taking substantial funds from the association account, Chief Assistant Prosecutor Thompson neither sought dismissal nor halted the criminal case against plaintiff; the prosecution against plaintiff continued. On April 4, 1978, District Judge Bolle concluded the preliminary examination by dismissing the charge against plaintiff on the merits. Judge Bolle ruled that the prosecutor did not have enough evidence to prove the requisite criminal intent and, therefore, declined to bind the case over to the circuit court for trial.
Because of the criminal prosecution, plaintiff said he felt humiliated before the many news and law enforcement personnel he was familiar with. He resigned as editor of a sports magazine and had an article turned down by a newspaper because of the incident. Equipment from his business was repossessed because he could not continue payments. He said he lost contracts or potential contracts with other police departments to do magazines similar to the Monitor Magazine published for the association. For these injuries, he claimed damages.
On appeal from a directed verdict, the standard of review is whether, taking the evidence in a light favorable to plaintiff, a prima facie case of liability is established.
"a. a prosecution caused or continued by one person against another
"b. termination of the proceeding in favor of the person who was prosecuted
"c. absence of probable cause for initiating or continuing the proceeding
"d. initiating or continuing the proceeding with malice or a primary purpose other than that of bringing the offender to justice”.
Malicious prosecution actions are not favored or encouraged except in plain, compelling cases.
The trial court granted the motion for directed verdict of each of the defendants on the ground that plaintiff had not met his burden of proof as to the third element of actions for malicious prosecution, stating that the "number one thing that sticks out is the probable cause. I do not see how the jury, based upon what’s been presented here, could say that there was not probable cause.” The trial court did not rule on the other elements of malicious prosecution. Defendants have conceded that the criminal proceedings terminated in plaintiff’s favor.
On appeal, we first consider the grant of directed verdicts in favor of defendants Vohs and Whitefield. As previously indicated, the first element of malicious prosecution is causing or continuing a prosecution against another. Here, Officer Vohs made out an incident report and sent it to Chief Whitefield, who then passed it along to the
As stated in Webster v Fowler:
"It is a well-established rule of law that the advice and concurrence of a public prosecutor is not a good defense to an action for malicious prosecution unless it appears that the defendant fully and fairly disclosed to such officer everything within defendant’s knowledge which would tend to cause or to exclude belief in plaintiff’s guilt; and whether the defendant did make a full and fair disclosure to the district attorney was a matter for the jury to determine, and not for the trial court or this Court.”
While we would agree that defendant Vohs made something less than a full disclosure to the prosecutor, plaintiff’s argument must fail because the prosecutor’s investigator, defendant Daniel, conducted an independent investigation and decided to seek prosecution based on his own findings. In the within case, Officer Vohs and Chief Whitefield played no part in the investigation and arrest of plaintiff after the September 13, 1977, meeting with the prosecutor.
With respect to defendants Vohs and Whitefield, plaintiff has not addressed in his brief the issue of probable cause. Since defendants Vohs and Whitefield did not initiate the prosecution, but submitted the matter to the prosecutor to investigate and bring charges as he saw fit, this is understandable.
"We are all of opinion that where a criminal prosecution is commenced for the purpose of collecting a private claim, such fact would be very strong, if not conclusive evidence of malice, and that advice of counsel under such circumstances would be no protection. The commencement of a criminal action for such a purpose is an abuse of the process of the courts, and cannot be justified.”
In the Gallaway case, after the defendants presented the known facts to an attorney and were told that plaintiff was guilty of a criminal offense, defendants themselves made the complaint. However, there is no precedent extending the rule of Gallaway to a situation like the present where defendants, Vohs and Whitefield, merely submitted enough facts to the prosecutor to get an independent investigation under way.
Next, we consider plaintiffs argument that the
Although it is not very clearly articulated, apparently plaintiff argues that defendant Patterson ratified and encouraged the prosecution by his remarks to the press following plaintiff’s arraignment. While on these proofs we do not accept that proposition, nevertheless, we consider the matter of probable cause in relation to defendant Patterson. Plaintiff has not directly imputed to the prosecutor any knowledge of plaintiff’s claim of ownership to the checks taken; the evidence is squarely contrary. Thus, as to defendant Patterson, the fact issue of who had the rightful claim to the money represented by the checks was irrelevant. He didn’t know plaintiff claimed ownership. Whether defendant prosecutor had probable cause to believe that plaintiff was guilty of larceny by conversion was a question for the lower court to decide as a matter of law, because, as to him, plaintiff established no issue of material fact. Presumably, defendant prosecutor got his information from his investigator’s report, which indicated that plaintiff had endorsed and cashed checks made payable only to the MHPOA and that plaintiff had done so with
Plaintiff also asserts that "Patterson is liable for the acts of his agent Daniel” and cites Jorgenson v Bartlett Lumber Co
"The judiciary has long been granted immunity from suits for malicious prosecution, and this immunity has gradually been extended to cover prosecuting attorneys, on the theory that they act in a quasi-judicial capacity.”
We are satisfied that a county prosecutor is immune from tort liability for malicious prosecution. Since plaintiff has not made any argument that the doctrine of respondeat superior should defeat immunity, we consider the argument waived.
However, plaintiff argues that the prosecutor is not entitled to immunity when he acts as an investigator. In the instant case, the prosecutor delegated his investigative duties to defendant Daniel and, therefore, says plaintiff, should be
We conclude that while it may be argued that such delegation is possible evidence of his instigation of the prosecution, it does not result in a loss of immunity.
Last, plaintiff argues that the trial court erred in granting a directed verdict in favor of defendant Daniel, the prosecutor’s investigator. Defendant Daniel concedes that he initiated prosecution against plaintiff and that the prosecution terminated in favor of plaintiff. However, the question of whether defendant Daniel had probable cause to believe plaintiff guilty of larceny by conversion is strenuously disputed by the parties.
In Michigan, probable cause in malicious prosecution is defined as follows:
" 'To constitute probable cause, there must be such reasonable ground of suspicion, supported by circumstances sufficiently strong in themselves to warrant an ordinarily cautious man in the belief that the person arrested is guilty of the offense charged.’ ”
Whether or not probable cause exists is measured as of the time prosecution is commenced.
As previously indicated, the trial judge held that as a matter of law defendant Daniel had probable cause to prosecute plaintiff for larceny by conversion. Gooch v Wachowiak
"There is no dispute as to the facts available to defendant and on which he relied when he signed the complaint. Accordingly, the want of probable cause on his part was a question of law for the court and the court was correct in undertaking to determine it.”
However, it should be noted that Gooch is a case where the defendant took his facts to the prosecuting attorney who, on the basis of additional police investigation, recommended a warrant. It was only
A balanced statement of the rule is contained in 54 CJS, Malicious Prosecution, § 97, pp 1086-1987, as follows:
"In an abstract and theoretical sense probable cause for the institution of a criminal or civil proceeding is a puré question of law; but it is a rule of practically universal application that whether probable cause exists in a particular case is a mixed question of law and fact. In other words, it is for the jury to determine whether in the particular case the facts relied on to constitute probable cause have been established by the evidence introduced, and for the court to determine from the facts established, admitted, or undisputed whether probable cause exists.”
But, where the facts relied on as constituting probable cause are admitted or undisputed and only one inference can be drawn therefrom, the question of probable cause is solely for the determination of the court.
Applied here, these principles suggest the following questions:
1. Did plaintiff make a sufficient showing that defendant Daniel lacked probable cause to instigate prosecution of plaintiff for larceny by conversion? If not, the directed verdict for defendant Daniel should be affirmed.
2. If plaintiff did make a sufficient showing, is the question one of law for the court, or does it include fact issues that must be resolved by a jury? If the former, was the trial judge correct in finding no proof of lack of probable cause? If the
In this case, plaintiff did show that the larceny by conversion charge against him was dismissed by the district judge at conclusion of the preliminary examination. At a preliminary examination, the prosecution need only show that the crime has been committed and that there is probable cause that defendant committed the crime. Proof beyond a reasonable doubt is not required. In throwing out the larceny by conversion charge against plaintiff, the district judge held that there was not enough evidence of an intent on the part of plaintiff to defraud the MHPOA to justify binding plaintiff over to the circuit court for trial on the merits.
In most jurisdictions, the rule is well settled that "the discharge of [an] accused on a preliminary examination by a magistrate” is prima facie, or some evidence of want of probable cause, or supports an inference of want of probable cause.
We hold that, in the within case, the dismissal on the merits of the larceny by conversion charge against plaintiff by the district judge at the conclusion of the preliminary examination is evidence of a lack of probable cause to prosecute on the part of defendant Daniel.
In this case, it is also clear that plaintiff informed defendant Daniel of his claim that his taking possession of the checks, the endorsing of them and the use to which he allegedly put the money was authorized and lawful under his contract with the MHPOA or had been authorized by Officer Carley. We refer to these claims of plaintiff only with reference to the probable cause issue to indicate that questions of fact did exist. We are also aware of the evidence problems in this trial, which often seemed to be of plaintiffs counsel’s own making.
Consequently, in this connection, we conclude that fact issues did exist. Since there were fact issues, it was error for the trial court to hold that the question of probable cause was one of law that could be taken from the jury.
Where a complainant, at least one who is a non-lawyer, makes a full and fair disclosure to a prosecutor and the prosecutor determines that a crime has been committed, the complainant may justifiably rely on the prosecutor’s determination.
We are aware that defendant Daniel contends that plaintiffs claim of part equitable ownership of advertising revenues is an immaterial fact, so that the alleged disclosure of defendant Daniel was full
Under this theory, plaintiff’s intent was a material and crucial fact, since larceny by conversion is a specific intent crime. As stated in People v Scott,
In this case, defendant Daniel did not make a sufficient showing at trial as to exactly what he told the assistant prosecutor who authorized the warrant to entitle defendant Daniel to the protection of this rule. But, defendant Daniel argues that, even if we were to assume that he did not make full disclosure to the chief of warrants, his failure to make full disclosure would not prove lack of probable cause.
" 'Probable cause is such reasonable ground of suspicion, supported by known circumstances, or by information of sufficient character, to justify an ordinarily cautious person in believing that the accused is guilty of the alleged crime.’ Gilecki v Dolemba (syllabus), 189 Mich 107 [155 NW 437 (1915)].”
In this case, the facts underlying plaintiffs claim of ownership to the checks were in dispute. The MHPOA maintained that plaintiff had been adequately paid for expenses and was not entitled to any more money. The MHPOA records were not in a condition to conclusively resolve the issue. While plaintiff was not officially authorized to endorse the checks, he told defendant Daniel that Officer Carley said he "could have a hundred”. Because of the disputed fact as to who had proper claim to the funds, we hold that it became a jury question whether defendant Daniel had probable cause to believe that plaintiff was guilty of larceny by conversion. We have not discussed the question of malice which is, of course, an element of malicious prosecution because the trial court did not rely on it or discuss it. On retrial, malice will necessarily be left for the jury, since, if the jury finds a lack of probable cause, it may thereupon infer malice.
In conclusion, we hold that the issue of whether defendant Daniel had probable cause to seek a warrant charging plaintiff with larceny by conversion was, in this case, one of fact or perhaps, in
Affirmed in part; reversed in part.
When commenced, this case was assigned to Judge William John Beer, who was responsible for the case until January 1, 1981, when Judge Robert C. Anderson assumed responsibility.
Miranda v Arizona, 384 US 436; 86 S Ct 1602; 16 L Ed 2d 694 (1966).
Blanchard v Monical Machinery Co, 84 Mich App 279; 269 NW2d 564 (1978).
SJI2d 117.01, added September, 1982. See Wilson v Yono, 65 Mich App 441, 443; 237 NW2d 494 (1975).
Renda v International Union, UAW, 366 Mich 58, 74; 114 NW2d 343 (1962). Also see Friedman v Dozorc, 412 Mich 1, 32-42; 312 NW2d 585 (1981).
89 Mich 303, 304; 50 NW 1074 (1891).
Wilson v Yono, supra.
Thomas v Winters, 258 Mich 429, 432; 242 NW 780 (1932).
32 Mich 332, 335 (1875).
See, e.g., Hall v American Investment Co, 241 Mich 349; 217 NW 18 (1928).
Thomas v Winters, supra.
232 Mich 169; 205 NW 138 (1925).
385 Mich 402, 406; 189 NW2d 221 (1971).
Bloss v Williams, 15 Mich App 228; 166 NW2d 520 (1968).
This quote is from Thomas v Winters, supra, p 432, where the Supreme Court, in reversing a judgment for plaintiff for malicious prosecution, quoted the syllabi of Wilson v Bowen, 64 Mich 133; 31 NW 81 (1887), and went on to hold that an ordinarily cautious man would have had probable cause under the circumstances to sign the complaint. In 54 CJS, Malicious Prosecution, § 26, p 982 the general rule is similarly defined:
"Probable cause for instituting a criminal prosecution is frequently defined as reasonable grounds for suspicion supported by circumstances sufficiently strong in themselves to warrant a cautious man in the belief that the accused is guilty of the offense with which he is charged.”
Hall v American Investment Co, supra; 54 CJS, Malicious Prosecution, § 29, p 988.
367 Mich 318; 116 NW2d 736 (1962). Also see, Hamilton v Smith, 39 Mich 222 (1878).
352 Mich 347, 351; 89 NW2d 496 (1958).
54 CJS, Malicious Prosecution, § 34, pp 994-995.
See Banks v Montgomery Ward & Co, 212 Md 31, 40; 128 A2d 600 (1957); Prosser, Torts, 2d ed, § 98, p 656; 3 Restatement Torts, 2d, §663.
See Webster v Fowler, supra.
72 Mich App 16, 19; 248 NW2d 693 (1976).
See LaLone v Rashid, 34 Mich App 193, 198; 191 NW2d 98 (1971), lv den 386 Mich 756 (1971).
261 Mich 423, 427; 246 NW 168 (1933). See, also, cases cited in fn 15, supra.
Concurring in Part
(concurring in part and dissenting in part). I concur in the majority opinion with respect to all defendants except Danny R. Daniel. I would affirm the trial court’s order granting a directed verdict in favor of defendant Daniel as well.
Where the material facts are not in dispute, the determination of probable cause in a malicious prosecution case is a question of law for the trial judge. In Clanan v Nushzno, 261 Mich 423, 427; 246 NW 168 (1933), cited by the majority, the Court stated:
" 'The general rule of the common law, sustained by the overwhelming weight of authority, both in England and America, is that what facts, and whether particular facts, constitute probable cause is a question of law, which the judge must decide upon the facts found to exist in the particular case, and which it is error for him to submit to the decision of the jury.’ 18 R.C.L. § 39, p 58.
" 'Probable cause is such reasonable ground of suspicion, supported by known circumstances, or by information of sufficient character, to justify an ordinarily cautious person in believing that the accused is guilty of the alleged crime.’ Gilecki v Dolemba (syllabus), 189 Mich 107 [155 NW 437 (1915)].
" 'Facts which would justify a reasonably prudent man in asking that a jury pass upon accused’s guilt would justify defendant in making the complaint.’ Weiden v Weiden (syllabus), 246 Mich 347 [224 NW 345 (1929)].”
The majority relies on the fact that the district court judge dismissed the larceny by conversion charges on the merits at the preliminary examination. The majority looks to authority outside Michigan to support the proposition that a district court’s dismissal on the merits at the preliminary examination is either evidence of or a prima facie case of lack of probable cause, citing Banks v Montgomery Ward & Co, Inc, 212 Md 31; 128 A2d 600 (1957). The Banks Court stated:
"The general rule seems to be that prima facie evidence of want of probable cause is shown either by discharge by a magistrate upon preliminary hearing on the merits or the termination of the proceedings at the instance of the private prosecutor who initiated them, or by reason of his failure to press the charge. Restatement, Torts, §§663, 665. * * * Some courts hold that neither an acquittal nor a discharge in preliminary hearing is relevant on the question of probable cause since the decisive time for determining its presence or absence is the time the defendant acted and that this test is not to be affected by what later occurs. Mr. Justice Brennan so held for the Appellate Division of the Superior Court of New Jersey in Shoemaker v Shoemaker, 11 NJ Super 471; 78 A2d 605 (1951).” (Emphasis supplied.)
In my opinion, the Shoemaker holding represents the more logical view. There are many reasons why a charge may be dismissed on the merits at the preliminary examination stage which did not exist at the time the warrant was signed. In
The Michigan Supreme Court has apparently already taken the view that dismissal on the merits at the preliminary examination is not relevant to the question of probable cause in a malicious prosecution action. In Gooch v Wachowiak, 352 Mich 347, 350; 89 NW2d 496 (1958), the trial court directed a verdict of no cause of action upon a finding that the plaintiff had failed to make out a case as to the element of probable cause. The Court stated:
"Plaintiff says that the court erred in directing a verdict for defendant and that a case was made for the jury by a showing that the plaintiff had been discharged at the preliminary examination, that he had enjoyed a good character and reputation previously, which defendant knew and failed to tell the prosecuting authorities, and that the time element was such, after plaintiff’s leaving work at the Wall Wire Company at 3:30 p.m.,
The Court thoroughly discussed the concept of probable cause and the conditions under which its existence or nonexistence is a legal question for the trial court. Nowhere did the Court authorize use of the dismissal at the preliminary examination as some evidence of lack of probable cause or as providing a prima facie case of lack of probable cause. Rather, the opinion directs the trial courts, even when the underlying case was dismissed at the preliminary examination, to examine the facts and determine whether there is a factual dispute and, if not, to decide the question as a matter of law.
In the present case, the facts upon which the trial court made its legal decision are virtually undisputed, such that determination of the issue of probable cause was properly for the trial court. I believe the facts and reasonable inferences therefrom, viewed in a light most favorable to plaintiff, support the granting of a directed verdict in favor of defendant Daniel. The plaintiff was required under the contract to deposit all checks in the association’s trust account. He was to be thereafter paid monies for expenses in publishing the magazine. Plaintiff claimed that there were monies due to him for those expenses and, further, that one of the members of the association had told him he could take $100. Plaintiff endorsed the name of the association on some of the advertisers’ checks, cashed them and used the money for payment of expenses, rather than placing the checks in the
" 'As to what is probable cause, we quote syllabi of Wilson v Bowen, 64 Mich 133 [31 NW 81 (1887)]
"' ''To constitute probable cause, there must be such reasonable ground of suspicion, supported by circumstances sufficiently strong in themselves to warrant an ordinarily cautious man in the belief that the person arrested is guilty of the offense charged.
" ' "A person may have 'probable cause’ for making a criminal complaint from information received from others, which he honestly believes to be true, and of such a character, and obtained from such sources, that business men generally, of ordinary care, prudence, and discretion, would act upon it under such circumstances, believing it to be reliable.” ’ ”
In the instant case, the total amount of the checks which plaintiff illegally endorsed and cashed was well above $100. Certainly the fact that he was told he could take "a hundred” did not give him the right to cash three checks totaling well above $100. More importantly, no interpretation of these facts would permit plaintiff to use the self-help method of collecting the civil debt which he believed was owed to him by the association. There were proper legal channels open to plaintiff to collect the alleged debt. The mere fact that plaintiff claimed the association owed a debt to him does not affect the probable cause issue, since it is clear that plaintiff had no legal right to endorse the checks with the association’s name or to cash them and convert the funds to his own use.
An additional reason for upholding the trial court’s directed verdict as to defendant Daniel is that, as a non-lawyer, Daniel made a substantially full disclosure of the results of the investigation to the prosecutor, who then determined that a criminal prosecution was warranted. I agree with the majority that this is relevant to the element of probable cause. See Wilson v Yono, 65 Mich App 441, 444; 237 NW2d 494 (1975). I disagree with the majority, however, and agree with defendant Daniel that his failure to communicate to the prosecutor the plaintiff’s claimed entitlement to the advertising revenues did not involve a material fact. Daniel investigated the circumstances at the request of the prosecutor and presented the following evidence: at least three business entities had issued checks payable only to the association; plaintiff had obtained some of the checks without the approval of the association and had endorsed the association’s name on the checks and either cashed or deposited them in his own account; and plaintiff admitted this but alleged that the money was actually owed to him by the association. Even assuming Daniel did not make a full disclosure concerning plaintiff’s claim of a debt owed to him by the association, it does not affect the probable cause element. As discussed earlier, even if money from the association’s trust account was to be
In conclusion, I would hold that whether defendant Daniel had probable cause to seek a warrant charging plaintiff with larceny by conversion was a matter of law. The trial judge, viewing the facts in a light most favorable to plaintiff, correctly found that defendant Daniel acted with probable cause based upon his investigation. In addition, by presenting the matter to the prosecutor, he was removed from any responsibility with respect to the prosecution since he completely and fairly communicated all materal facts. Therefore, I would affirm the trial court as to all defendants. I decline to discuss the element of malice since it was not addressed by the trial court and the question is not presently before this Court.
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