Opinion ID: 199871
Heading Depth: 2
Heading Rank: 2

Heading: Wrongful civil action and malicious prosecution

Text: 23 Next, we turn to the claims on which ACT was awarded summary judgment. We review summary judgment rulings de novo after considering the record evidence in the light most favorable to, and drawing all reasonable inferences in favor of, the nonmoving party. Straughn v. Delta Air Lines, Inc., 250 F.3d 23, 33 (1st Cir.2001) ( citing Feliciano De La Cruz v. El Conquistador Resort & Country Club, 218 F.3d 1, 5 (1st Cir.2000)). We will affirm the summary judgment ruling if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law. Id. (citing Fed.R.Civ.P. 56(c)). 24 Counts I and II are claims for wrongful civil action and malicious prosecution. To succeed on these claims, a plaintiff must show that the defendant instituted a proceeding and caused criminal charges to be filed against the plaintiff without probable cause and with malice, and that the proceedings terminated in the plaintiff's favor. 1 ERG, Inc. v. Barnes, 137 N.H. 186, 190, 624 A.2d 555 (1993) (internal citations omitted). At issue here is whether Martin adduced sufficient evidence of the absence of probable cause to survive summary judgment. Probable cause is defined to be such a state of facts in the mind of the prosecutor as would lead a man of ordinary caution and prudence to believe or entertain an honest and strong suspicion that the person arrested is guilty. MacRae v. Brant, 108 N.H. 177, 180, 230 A.2d 753 (1967) (quoting Cohn v. Saidel, 71 N.H. 558, 567, 53 A. 800 (1902)). While the determination of facts relevant to probable cause is left to a factfinder, the existence of probable cause is ultimately a question of law to be decided by the court. Id. 25 Martin contends that ACT was aware that probable cause did not exist. He asserts that the company provided the police with information that suggested guilt but withheld information that suggested innocence, and that there were alternative explanations for the evidence provided to Widener. 26 In support of these contentions, Martin points to his affidavit, in which he addresses the four financial irregularities upon which the prosecution was based. First, Martin stated that his pay raise was not unauthorized, because Sullivan had agreed to it. The raise was reflected in his paychecks from mid-April until after his employment was terminated, implying that ACT approved it. 27 Second, as to the software training, Martin said that he received a request for training from a Tech Tools customer, the American Red Cross, while he was in negotiations to purchase Tech Tools. Tech Tools had never done a training and did not offer such services, but Martin was planning to offer such training through his own company, Impact Technology. Hence, he had the payment for software training sent to Impact Technology. 28 Third, as to the computer equipment, he stated that he was no longer affiliated with Execute Technologies, the company that provided and installed the equipment. He contended that contrary to ACT's assertions, Tech Tools did receive all of the equipment it purchased. Martin explained that he created the Execute Technologies invoice himself because Execute Technologies's software was not set up to do so at that time. 29 Fourth, he disputed that Tech Tools was overcharged for mailers created by his ex-wife, stating that she charged a competitive market price as confirmed by checking with a competing company. Finally, Martin suggested a motive for ACT's civil and criminal claims: to scuttle the deal to sell Tech Tools to Martin so that it could sell the company to someone else. 30 Martin's affidavit provided explanations for the evidence against him that might have convinced a jury that he was not guilty or liable, if the criminal or civil cases had proceeded. Probable cause does not depend upon the ultimate merit of the allegations against the plaintiff, however. Stock v. Byers, 120 N.H. 844, 848, 424 A.2d 1122 (1980). And while Martin's statements undoubtedly create a factual dispute as to ACT's malice in initiating its claims, the element of malice is evaluated separately from probable cause. If the defendant had such information as would reasonably lead him to believe that the accused had committed a crime, it is immaterial that the defendant may have been actuated by malice or by motives that were less than noble in bringing the charge. Id. [T]he absence of probable cause cannot be inferred from even express malice. Id. 31 The evidence detailed supra — Martin's pay raise, the software training fee paid to Impact Technology, the computer equipment billed from Execute Technologies, and the payment to Calligraphy Creations — could have reasonably led ACT and the government to believe that Martin had stolen funds from ACT. The record shows that the police performed a reasonably thorough and independent investigation of the allegations before seeking an arrest warrant, and the New Hampshire court issued the warrant based on sufficient evidence. 32 Nor does Martin's proffered motive for the prosecution create a fact dispute. It is uncontroverted that there was no contract in place for the sale of Tech Tools at the time of Martin's termination. Insofar as the record reveals, nothing prevented ACT from simply declining to go forward with the deal with Martin; it need not have trumped up charges against him. Martin therefore cannot prevail on his malicious prosecution claims, and summary judgment was appropriate. 33