Opinion ID: 1172467
Heading Depth: 1
Heading Rank: 5

Heading: Measure of Damages Items Recoverable as Compensatory Damages

Text: Defendants challenge the various measures of damages awarded Bertero. (9) As previously stated, the measure of compensatory damages for the malicious prosecution of a civil action includes attorney fees and court costs for defending the prior action and compensation for emotional distress, mental suffering and impairment to reputation proximately caused by the initiation and prosecution of the action. Except as hereinafter specifically noted, the jury was properly instructed on the measure of compensatory damages. [7] In recognizing that the malicious prosecution of a cross-action filed without probable cause is actionable, we adopt the conventional measure of damages in malicious prosecution actions although the instant case cannot be considered as conventional. The cross-action maliciously pursued, was premised upon the same theories as was a privileged affirmative defense, and common factual and legal matters were asserted and urged in support of each pleading. (See Eastin v. Bank of Stockton, supra, 66 Cal. 123; Ritter v. Ritter, supra, 381 Ill. 549.) It was thus difficult if not impossible to apportion the harm which flowed from proceedings had on the cross-action from that which flowed from those had on the affirmative defense. As in the case of the assertion of a maliciously prosecuted complaint with one for which there was probable cause (see Singleton v. Perry, supra, 45 Cal.2d 489, 498), the burden of proving such an apportionment must rest with the party whose malicious conduct created the problem. To place the burden on the injured party rather than upon the wrongdoer would, in effect, clothe the transgressor with immunity when, because of the interrelationship of the defense and cross-action, the injured party could not apportion his damages. In situations in which a plaintiff has proven damages proximately caused by the negligence of several defendants, we have placed upon the defendants the burden of absolving themselves from culpability ( Summers v. Tice (1948) 33 Cal.2d 80 [199 P.2d 1, 5 A.L.R.2d 91]), and have also required that a defendant prove what portion of the totality of damages his negligence has caused when the evidence establishes that he has contributed substantially to the total damages ( Finnegan v. Royal Realty Co. (1950) 35 Cal.2d 409 [218 P.2d 17]; see also, City of Oakland v. Pacific Gas & E. Co. (1941) 47 Cal. App.2d 444 [118 P.2d 328]). Similarly in the instant case the defendants must shoulder the burden of apportioning proven damages if, in fact, some of such damages is the result of an aggressive defense which could be asserted with immunity and some is the result of a cross-action maliciously prosecuted. [8] Bertero recovered from defendants in the initial action all damages resulting from the breaches of the 1959 employment contract and agreement relating to the stock options, and it is manifest that he cannot again recover for identical breaches in the instant action for malicious prosecution. We must conclude, however, that as the jury was properly instructed on the measure of damages the damages awarded were based on findings that Bertero had suffered injuries attributable only to proper elements of damages recoverable in an action for malicious prosecution. Testimony tending to prove that Klein acted without probable cause in prosecuting the cross-complaint was thus relevant although such testimony may also have related to other improper conduct for which Bertero had previously recovered damages. Defendants correctly argue that since Bertero had already been compensated for the breach of contract, the jury could not heap additional rewards upon him for the same injury. They further contend that the receipt of collateral testimony of the breaches of contract so prejudiced the jury against defendants that the final award of compensatory damages necessarily included, as a matter of law, elements properly attributable to the action for breach of contract. Defendants' contention is without merit. (10) A reviewing court must uphold an award of damages whenever possible ( Seffert v. Los Angeles Transit Lines (1961) 56 Cal.2d 498, 508 [15 Cal. Rptr. 161, 364 P.2d 337]) and all presumptions are in favor of the judgment ( Torres v. City of Los Angeles (1962) 58 Cal.2d 35, 43 [22 Cal. Rptr. 866, 372 P.2d 906]; Leming v. Oilfields Trucking Co. (1955) 44 Cal.2d 343, 356 [282 P.2d 23, 51 A.L.R.2d 107].) Evidence that Bertero accumulated and paid substantial legal fees as a result of defending against the cross-complaint maliciously prosecuted is undisputed. The filing of the cross-action resulted in substantial damage to Bertero's reputation in the business and particularly in the entertainment industry. Despite the fact that the improper firing and its attendant publicity predated the actionable pleadings, allegations in the present action which were tantamount to charges of fraud could reasonably have been interpreted by the jury to have further damaged Bertero's reputation. Finally, there is substantial testimony as to the trauma suffered by Bertero due to the filing of the cross-pleading which sought $104,000, the successful recovery of which might have made him insolvent. At the time of the filings Bertero was unemployed, his stock options had been unilaterally revoked along with his insurance benefits and his reputation in the entertainment industry had been challenged. The jurors could reasonably have inferred that the prosecution of the fabricated charges exposed Bertero to damages to which he could not have responded and thereby served to bring about substantial emotional distress. As the jurors were properly instructed on the elements of compensatory damages and could reasonably have made findings in support of the award therefor, we must reject the contention that such award contained improper elements of recovery except as to the award for attorney fees next considered.