Opinion ID: 1332001
Heading Depth: 1
Heading Rank: 7

Heading: Count Number IIAbuse of Process

Text: Plaintiff's Count Number II, labeled abuse of process, was also dismissed under Rule 12(b)(6) for failure to state a claim. This claim against defendant was predicated on his conduct in bringing a prior suit in federal court against the I.R.S. and joining the plaintiff as a co-defendant therein. A copy of the complaint filed in that action was attached to and explicitly incorporated as part of plaintiff's complaint in this proceeding. The copy attached reveals that defendant sought in bringing the prior action to restrain and enjoin the I.R.S. and the plaintiff from acting in concert to deprive [him] of his property and civil rights guaranteed under the Constitution and laws of the United States. This claim for injunctive relief was supported by allegations to the effect that the I.R.S. had taken inconsistent positions on the question of whether the sums paid by defendant-husband to plaintiff-wife pursuant to their agreement allocating the payment of plaintiff-wife's attorneys' fees to her were deductible. The complaint further alleged that plaintiff-wife encouraged and actively participated in the illegal and inconsistent position taken by [the I.R.S.] in order to force [defendant-husband] into paying to her . . . the amount of the deficiency assessed against her by [the I.R.S.]. Plaintiff's claim labeled abuse of process alleged: 3. The true purpose of said action [brought in federal court against her and the I.R.S.] was not to seek legitimate relief but to harass, embarrass and annoy the plaintiff, Vanita B. Stanback, and to cause her to incur expenses for the defense of said action and to cause her to forego her legal rights and remedies. 4. The action of the defendant was malicious, wrongful and unjustified and without probable cause since his claim, if any, against the United States was unrelated to this separate obligation to the plaintiff herein and the defendant instituted the said action for an ulterior and wrongful purpose of restraining the plaintiff from exercising her rights. Protection against wrongful litigation is afforded by a cause of action for either abuse of process or malicious prosecution. The legal theories underlying the two actions parallel one another to a substantial degree, and often the facts of a case would support a claim under either theory. See Smith v. Somers, 213 N.C. 209, 195 S.E. 382 (1938); Railroad Co. v. Hardware Co., 138 N.C. 174, 50 S.E. 571 (1905). In Fowle v. Fowle, 263 N.C. 724, 728, 140 S.E.2d 398, 401 (1965), it was observed that abuse of process is the misuse of legal process for an ulterior purpose. It consists in the malicious misuse or misapplication of that process after issuance to accomplish some purpose not warranted or commanded by the writ. It is the malicious perversion of a legally issued process whereby a result not lawfully or properly obtainable under it is attended (sic) to be secured. See Barnette v. Woody, 242 N.C. 424, 88 S.E.2d 223 (1955); Finance Corp. v. Lane, 221 N.C. 189, 19 S.E.2d 849 (1942); Wright v. Harris, 160 N.C. 542, 76 S.E. 489 (1912). In a excellent article analyzing the cases in which this Court has considered both malicious prosecution and abuse of process, Professor Robert Byrd observes that abuse of process requires both an ulterior motive and an act in the use of the legal process not proper in the regular prosecution of the proceeding, and that [b]oth requirements relate to the defendant's purpose to achieve through the use of the process some end foreign to those it was designed to effect. R. Byrd, Malicious Prosecution in North Carolina, 47 N.C. L.Rev. 285, 288 (1969). The ulterior motive requirement is satisfied when the plaintiff alleges that the prior action was initiated by defendant or used by him to achieve a collateral purpose not within the normal scope of the process used. The act requirement is satisfied when the plaintiff alleges that once the prior proceeding was initiated, the defendant committed some wilful act whereby he sought to use the existence of the proceeding to gain advantage of the plaintiff in respect to some collateral matter. Edwards v. Jenkins, 247 N.C. 565, 101 S.E.2d 410 (1957); Barnette v. Woody, supra ; Finance Corp. v. Lane, supra ; W. Prosser, Torts, § 121 p. 857 (4th ed. 1971). An example of such a wilful act not proper in the regular prosecution of the proceeding is an offer made after the proceeding has been initiated to discontinue it in return for the payment of money. Ellis v. Wellons, 224 N.C. 269, 29 S.E.2d 884 (1944). Plaintiff's complaint sufficiently alleges that defendant's suit against her in federal court was brought with ulterior motives. Her complaint fails, however, to allege that defendant committed any wilful act not proper in the regular course of the proceeding once he initiated the suit against her. As was said in Finance Corp. v. Lane, supra, at 196-97, 19 S.E.2d at 853, [t]here is no abuse of process where it is confined to its regular and legitimate function in relation to the cause of action stated in the complaint. For that reason, the complaint fails to state a claim for abuse of process. Plaintiff contends in her brief that even if her allegations fail to state a claim for abuse of process they are sufficient to state a claim for malicious prosecution. The requirements of N.C.R.Civ.P. 8(a) are met when a pleading gives sufficient notice of the events or transactions which produced the claim to enable the adverse party to understand the nature of it and the basis for it, to file a responsive pleading, andby using the rules provided for obtaining pretrial discoveryto get any additional information he may need to prepare for trial. Sutton v. Duke, 277 N.C. 94, 104, 176 S.E.2d 161, 164 (1970). We note also that N.C.R.Civ.P. 54(c) requires that every final judgment, with the exception of judgments rendered by default, shall grant the relief to which the party in whose favor it is rendered is entitled, even if the party has not demanded such relief in his pleadings. Thus when the allegations in the complaint give sufficient notice of the wrong complained of an incorrect choice of legal theory should not result in dismissal of the claim if the allegations are sufficient to state a claim under some legal theory. Our interpretation of the concept of notice pleading embodied in N.C.R.Civ.P. 8(a) supports that conclusion. Sutton v. Duke, supra . We also note that Fed.R.Civ.P. 8(a)(2), which differs to some extent from N.C.R. Civ.P. 8(a) but which also embodies the concept of notice pleading, has been interpreted in a similar fashion. See New Amsterdam Cas. Co. v. Waller, 323 F.2d 20 (4th Cir. 1963); Dotschay v. National Mut. Ins. Co., 246 F.2d 221 (5th Cir. 1957); 2A Moore's Federal Practice, ¶ 8.14, p. 1713 (2d ed. 1975). In order to survive a motion to dismiss, however, the allegations of a mislabeled claim must reveal that plaintiff has properly stated a claim under a different legal theory. We turn now to a consideration of whether the plaintiff's allegations in this instance sufficiently state a claim for malicious prosecution. To recover for malicious prosecution the plaintiff must show that defendant initiated the earlier proceeding, that he did so maliciously and without probable cause, and that the earlier proceeding terminated in plaintiff's favor. Cook v. Lanier, 267 N.C. 166, 147 S.E.2d 910 (1966); Fowle v. Fowle, supra ; Barnette v. Woody, supra ; Abernethy v. Burns, 210 N.C. 636, 188 S.E. 97 (1936); Railroad Co. v. Hardware Co., 138 N.C. 175, 50 S.E. 571 (1905). At common law a malicious prosecution claim could be brought only on the basis of prior criminal proceedings brought by defendant against plaintiff. W. Prosser, Torts, § 120, pp. 850-51 (4th ed. 1971). In a rather large minority of American jurisdictions, however, including North Carolina, the protection afforded by an action for malicious prosecution has been extended to include an action for wrongful institution of civil proceedings. Brown v. Estates Corp., 239 N.C. 595, 80 S.E.2d 645 (1954); Nassif v. Goodman, 203 N.C. 451, 166 S.E. 308 (1932); Estates v. Bank, 171 N.C. 579, 88 S.E. 783 (1916); Ely v. Davis, 111 N.C. 24, 15 S.E. 878 (1892); Williams v. Hunter, 10 N.C. 545 (1825). Those decisions indicate that when the plaintiff's claim for malicious prosecution is based on the institution of a prior civil proceeding against him he must show not only that defendant initiated the prior proceeding, that he did so maliciously and without probable cause, and that the prior proceeding terminated in plaintiff's favor but also that there was some arrest of his person, seizure of his property, or some other element of special damage resulting from the action such as would not necessarily result in all similar cases. Carver v. Lykes, 262 N.C. 345, 137 S.E.2d 139 (1964); Jerome v. Shaw, 172 N.C. 862, 90 S.E. 764 (1916). The gist of such special damage is a substantial interference either with the plaintiff's person or his property such as causing execution to be issued against the plaintiff's person, Overton v. Combs, 182 N.C. 4, 108 S.E. 357 (1921), causing an injunction to issue prohibiting plaintiff's use of his property in a certain way, Shute v. Shute, 180 N.C. 386, 104 S.E. 764 (1920), causing a receiver to be appointed to take control of plaintiff's assets, Nassif v. Goodman, supra , causing plaintiff's property to be attached, Brown v. Guaranty Estates Corp., 239 N.C. 595, 80 S.E.2d 645 (1954), or causing plaintiff to be wrongfully committed to a mental institution, Barnette v. Woody, supra . In the recent case of Carver v. Lykes, supra , in which this Court held that a claim for malicious prosecution based on proceedings brought against plaintiff before an administrative board could be maintained, the interference thereby caused by defendant with plaintiff's property right in his license to sell real estate was deemed sufficient to constitute special damages. The Court of Appeals found that plaintiff's complaint properly alleged defendant had initiated the prior civil proceeding against plaintiff and that he had done so maliciously and without probable cause. With that conclusion, we concur. The court held, however, that plaintiff's claim was properly dismissed because plaintiff failed to allege that the prior proceeding had terminated in plaintiff's favor on the merits. With this application of the law of malicious prosecution by the Court of Appeals we cannot agree. The requirement that the former proceeding have been terminated favorably to the plaintiff in a malicious prosecution action is satisfied in many instances by a disposition of the proceeding prior to a consideration of the merits. For example, in Cook v. Lanier, supra , it was held that plaintiff had sufficiently shown favorable termination of the prior proceeding by showing that the prior proceeding was dismissed for failure of the complainant to appear and prosecute. See Winkler v. Blowing Rock Lines, 195 N.C. 673, 143 S.E. 213 (1928); Hadley v. Tinnin, 170 N.C. 84, 86 S.E. 1017 (1915); 52 Am. Jur.2d, Malicious Prosecution, § 42, pp. 210-11; Annot., 135 A.L.R. 784. Comment (g) to § 674, Restatement of the Law of Torts, endorses the generally accepted rule that for the purpose of maintaining an action for malicious prosecution the prior civil proceeding on which it is based may be terminated in favor of the person against whom it is brought in several ways that do not involve an adjudication on the merits. We think therefor, that it is sufficient for the purpose of withstanding a motion to dismiss under Rule 12(b)(6) that plaintiff in an action for malicious prosecution allege merely that the prior civil proceeding was dismissed. Although we find error in the grounds on which the Court of Appeals affirmed the dismissal of plaintiff's Count Number II, we nevertheless affirm the dismissal on other grounds. The requirement that plaintiff in a malicious prosecution action based on a prior civil proceeding show special damage resulting therefrom, as discussed supra, is an essential, substantive element of the claim. Sutton v. Duke, supra , established the principle that despite the liberal nature of the concept of notice pleading, a complaint must nonetheless state enough to give the substantive elements of at least some legally recognized claim or it is subject to dismissal under Rule 12(b)(6). Moreover, N.C.R.Civ.P. 9(g) requires that [w]hen items of special damage are claimed each shall be averred. Thus [w]here the special damage is an integral part of the claim for relief, its insufficient allegation could provide the basis for dismissal under Rule 12(b)(6). 1 McIntosh, N. C. Civil Practice & Procedure, § 970.20(6), p. 918 (2d ed. 1970 Supp.). Plaintiff's complaint in this instance fails to allege anything which could possibly be construed as special damages as required by the substantive law of malicious prosecution. Paragraph number 6 of her complaint alleges only that the plaintiff has been damaged in that she has incurred expenses in defending said claim and has suffered embarrassment, humiliation, and mental anguish in the amount of $100,000.00. Such an allegation fails completely to allege a substantial interference with either the plaintiff's person or her property as contemplated by the special damage requirement. Had she alleged the issuance of a temporary restraining order or something of like nature, the complaint would clearly have been sufficient. But where, as here, the complaint reveals the nonexistence of an essential substantive element of the only legal theory under which plaintiff can proceed, the trial court may properly dismiss it for failure to state a claim for which relief can be granted. The trial court was correct in dismissing, and the Court of Appeals was correct, for reasons other than stated in the opinion of the Court of Appeals, in affirming the dismissal of plaintiff's claim for abuse of process contained in Count Number II of her complaint. Accordingly, we affirm the Court of Appeals upon this aspect of the case on different grounds for the reasons stated. The Court of Appeals held that the dismissal of plaintiff's Count Number II was with prejudice because in ruling on the 12(b)(6) motion the trial judge examined the pleadings in defendant's suit brought against plaintiff in federal court. A Rule 12(b)(6) motion to dismiss for failure to state a claim is indeed converted to a Rule 56 motion for summary judgment when matters outside the pleadings are presented to and not excluded by the court. Kessing v. Mortgage Corp., 278 N.C. 523, 180 S.E.2d 823 (1971). And a grant of summary judgment operates as a final judgment on the particular claim to which the motion is addressed. There is a multitude of federal cases considering the issue of when a Rule 12(b)(6) motion is converted into a Rule 56 motion for summary judgment by consideration of matters outside the pleadings under the Federal Rules of Civil Procedure. See Annot. 2 A.L.R.Fed. 1027. We need not consider at this time, however, what matters outside the pleadings presented to and considered by the court will result in conversion to a Rule 56 summary judgment proceeding. In paragraph (2) of the Count Number II of her complaint, plaintiff specifically incorporated by reference as an exhibit the complaint in the federal court action and a copy of it was attached to her complaint in this action. N.C.R.Civ.P. 10(c) provides in part, [a] copy of any written instrument which is an exhibit to a pleading is a part thereof for all purposes.  (Emphasis added.) The complaint in the federal court action was not, therefor, a matter outside the pleadings, and the motion to dismiss under Rule 12(b)(6) remained just that. Should plaintiff be able to state a claim for relief based on the occurrences underlying her allegations in this Count Number II, the dismissal of that claim under Rule 12(b)(6), which we now affirm, will not affect her right to do so. AFFIRMED in part. REVERSED in part. REMANDED to the Court of Appeals for further remand to the Superior Court. EXUM and BRITT, JJ., took no part in the consideration or decision of this case.