Opinion ID: 786706
Heading Depth: 3
Heading Rank: 2

Heading: New York Law Regarding the Favorable Termination Element

Text: 57 New York law does not require a malicious prosecution plaintiff to prove her innocence, or even that the termination of the criminal proceeding was indicative of innocence. Rather, the plaintiff's burden is to demonstrate a final termination that is not inconsistent with innocence. Smith-Hunter, 95 N.Y.2d at 198-99, 712 N.Y.S.2d 438, 734 N.E.2d 750; see also Cantalino v. Danner, 96 N.Y.2d 391, 396, 729 N.Y.S.2d 405, 754 N.E.2d 164 (2001) ([T]he question is whether, under the circumstances of each case, the disposition was inconsistent with the innocence of the accused.). 58 As a general rule, a final termination of a criminal proceeding in favor of the accused is a favorable termination for the purposes of a subsequent malicious prosecution claim. Smith-Hunter, 95 N.Y.2d at 195, 712 N.Y.S.2d 438, 734 N.E.2d 750. However, this general rule is subject to certain exceptions. Misconduct of the accused that prevents a proper trial, for example, is one such exception, as is dismissal out of mercy requested or accepted by the accused[.] Smith-Hunter, 95 N.Y.2d at 196-97, 712 N.Y.S.2d 438, 734 N.E.2d 750. Another is particularly relevant to this appeal: A termination is not favorable to the accused ... if the charge is withdrawn or the prosecution abandoned pursuant to a compromise with the accused. Id. at 196, 712 N.Y.S.2d 438, 734 N.E.2d 750. This exception has its origin in Halberstadt v. New York Life Ins. Co., 194 N.Y. 1, 86 N.E. 801 (1909), where the New York Court of Appeals stated as follows: 59 The first [rule] is that where a criminal proceeding has been terminated in favor of the accused by judicial action of the proper court or official in any way involving the merits or propriety of the proceeding or by a dismissal or discontinuance based on some act chargeable to the complainant as his consent or his withdrawal or abandonment of his prosecution, a foundation in this respect has been laid for an action of malicious prosecution. The other and reverse rule is that where the proceeding has been terminated without regard to its merits or propriety by agreement or settlement of the parties or solely by the procurement of the accused as a matter of favor or as the result of some act, trick or device preventing action and consideration by the court, there is no such [favorable] termination. ... 60 Id. at 10-11, 86 N.E. 801 (emphasis added); see also Martinez v. City of Schenectady, 97 N.Y.2d 78, 84, 735 N.Y.S.2d 868, 761 N.E.2d 560 (2001) (A termination is not favorable... where a prosecution ends because of a compromise with the accused). The rule mirrors the Restatement (Second) of Torts § 660 (1977) ( Restatement ), which provides that a termination of criminal proceedings in favor of the accused other than by acquittal is not a sufficient termination to meet the requirements of a cause of action for malicious prosecution if ... the prosecution [is] abandoned pursuant to an agreement of compromise with the accused. 4 61 In order for the compromise of a criminal case to defeat a subsequent malicious prosecution claim, it is not required that the defendant in the criminal case admit his guilt. The commentary to the Restatement § 660 makes this clear: Although the accused by his acceptance of a compromise does not admit his guilt, the fact of compromise indicates that the question of his guilt or innocence is left open. Having bought peace the accused may not thereafter assert that the proceedings have terminated in his favor.  Restatement § 660, cmt. c (emphasis added). Perhaps the best illustration of this principle is a disposition pursuant to section 170.55 of New York's Criminal Procedure Law, which authorizes adjournments in contemplation of dismissal. In this type of compromise, the criminal case is adjourned before the entry of a plea, based on the prosecutor's belief that there will ultimately be a dismissal of the accusatory instrument in the interest of justice. N.Y.Crim. Proc. Law § 170.55[1]-[2]. When the charge is later dismissed, the person charged is entitled to the full benefit of the record sealing and expunging provisions that attend an acquittal, with the effect that charge is treated as though it never had been brought. Hollender v. Trump Vill. Coop., Inc., 58 N.Y.2d 420, 425, 461 N.Y.S.2d 765, 448 N.E.2d 432 (1983). Nevertheless, such a termination extinguishes a malicious prosecution claim, see Smith-Hunter, 95 N.Y.2d at 197, 712 N.Y.S.2d 438, 734 N.E.2d 750 (reaffirming Hollender's holding that an adjournment in contemplation of dismissal does not produce a favorable termination) — not because the defendant has admitted guilt, but because it is a bargained-for dismissal of the criminal case.