Opinion ID: 2175682
Heading Depth: 1
Heading Rank: 4

Heading: nilson's appeal

Text: Burnett acted as counsel for the Harrisons in pursuing their remedies as aggrieved property owners and taxpayers. For the purposes of this case, we will assume that an attorney could be personally liable for an abuse of process or malicious interference with prospective business advantage based on a suit filed on behalf of a client. See Annotation, Civil Liability of Attorney for Abuse of Process, 97 A.L.R.3d 688 (1980). Nilson first contends that the trial court misstated and misapplied the standard for determining whether an action was instituted without substantial justification. This argument is based upon a statement made by the judge that: As a matter of law reasonable basis for believing that a case is colorable and/or has a colorable claim or defense is that it generates a factual issue for the fact finder at trial, and that provides substantial justification for initiating or defending an action, as I understand the law to be as set forth in [ Needle v. White, 81 Md. App. 463, 568 A.2d 856 (1990)], ... I'll take the Harrisons first. We do not believe that this single ambiguous statement indicates that the judge misperceived or misapplied the law. In fact, taken in context it indicates just the opposite. In the next sentence, the judge determines that Inlet's suit against the Harrisons did not lack substantial justification. That single statement taken out of context does not negate the presumption that the trial judge knew and properly applied the law. The trial judge was not clearly erroneous in sanctioning Nilson and Inlet for the abuse of process suit against Burnett. Although the judge did not find bad faith or lack of substantial justification in Inlet's suit against the Harrisons, he expressly found both in Inlet's suit against Burnett. The complaint in the abuse of process suit, as originally drafted by Martin, named the Harrisons as defendants; it did not name Burnett. The judge could conclude that Nilson knew that Burnett had simply pursued several lawsuits on behalf of his clients and that Nilson had no reason to believe that Burnett had the intent to maliciously interfere with prospective business advantage or the intent to utilize legal process in an improper manner or for a result not contemplated by law. Nilson's bill of complaint on behalf of Inlet was predicated on the lack of merit of the Harrisons' legal challenges to the Inlet project. Burnett believed and convinced the Court of Special Appeals that the Harrisons' challenges had merit. The trial judge expressly found that, under the circumstances of this case, mailing the draft complaint to Burnett was an act of intimidation clearly intended to force Burnett and the Harrisons to settle other collateral litigation. From these facts, the judge could have inferred that Burnett was joined in the abuse of process suit, not because Inlet and Nilson wished to recover tort damages from him, but to intimidate him into encouraging his clients to dismiss their legal challenges to the Inlet project. Further inferences of bad faith may be drawn from a letter by Martin to Nilson telling Nilson that he should inform Alvin I. Frederick (counsel retained to represent Burnett in the abuse of process litigation) that, if the Harrisons would simply drop their lawsuits in the Circuit Court for Worcester County, the entire matter would go away. Filing a lawsuit against an attorney based on conduct as an advocate that is filed not for the purpose of seeking redress, but for the purpose of coercing the attorney to settle other collateral litigation, can certainly justify a finding of bad faith. The trial judge was not clearly erroneous in finding both bad faith and lack of substantial justification in Inlet's suit against Burnett, and the judge did not abuse his discretion in assessing costs and attorney's fees under Rule 1-341. JUDGMENT OF THE CIRCUIT COURT FOR WORCESTER COUNTY AFFIRMED. COSTS TO BE PAID BY PETITIONERS. ROBERT M. BELL, Judge, dissenting. In Zdravkovich v. Bell Atlantic-Tricon Leasing Corp., 323 Md. 200, 592 A.2d 498 (1991), Judge Chasanow, the author of the majority opinion, speaking for the Court, made several insightful comments concerning the application of Maryland Rule 1-341. Beginning the assessment of counsel fees discussion, he observed: Rule 1-341 can be an effective tool for the deterrence of unnecessary or abusive litigation. Unfortunately, like many tools, if improperly used or if abused, it is capable of inflicting excessive or unwarranted injury. Id., 323 Md. at 209, 592 A.2d at 503. Concluding that discussion, Judge Chasanow asserted: Rule 1-341 is not intended to simply shift litigation expenses based on relative fault. Its purpose is to deter unnecessary and abusive litigation. The imposition of sanctions requires explicit factual findings supported by the record, as well as a careful exercise of judicial discretion. Id., 323 Md. at 212, 592 A.2d at 504. Judge McAuliffe, speaking for the Court in Tally v. Tally, 317 Md. 428, 436, 564 A.2d 777, 781 (1989), noted that an evidentiary finding of bad faith or lack of substantial justification is required to be made, and supported, by the trial court: The justification for this requirement lies not only in the clear language of the rule, but also in the logic that before such an extraordinary sanction is imposed there should be evidence that there has been a clear focus upon the criteria justifying it and a specific finding that these criteria have been met. Moreover, some brief exposition of the facts upon which the finding is based and an articulation of the particular finding involved are necessary for subsequent review. Thus, we recognized the logic in ensuring that trial judges have the right focus when applying the rule and also the desirability of a trial court articulating the basis of its finding. So, while the earlier cases, e.g. Newman v. Reilly, 314 Md. 364, 380, 550 A.2d 959, 967 (1989); Yamaner v. Orkin, 313 Md. 508, 509, 545 A.2d 1345, 1345 (1988); Legal Aid v. Bishop's Garth, 75 Md. App. 214, 220, 540 A.2d 1175, 1179 (1988), are consistent in focusing on the specific finding requirement, I read Tally as also imposing a duty on the trial court to enumerate facts to support them. One basis for such a requirement is the danger of abuse identified in Zdravkovich. The rule's purpose provides another. See Newman v. Reilly , 314 Md. at 380, 550 A.2d at 967 (Rule 1-341 is not intended to penalize a party and/or counsel for asserting a colorable claim or defense.); Yamaner, 313 Md. at 516, 545 A.2d at 1349 (same). See also Needle v. White, 81 Md. App. 463, 474, 568 A.2d 856, 861, cert. denied, 319 Md. 582, 573 A.2d 1338 (1990), where it is said: The objective of the rule is to fine-tune the judicial process by eliminating the abuses arising from the tendency of a few litigants and their counsel initiating or continuing litigation that is clearly without merit. The inherent danger in the process is that overzealous pursuit of the objective may result in what the Court, in Eastway Construction Corp. v. City of New York, 762 F.2d 243, 254 (2nd Cir.1985), described as stifling the enthusiasm or chilling the creativity that is the very lifeblood of the law. In Bishop's Garth, 75 Md. App. at 224, 540 A.2d at 1180, the Court of Special Appeals opined that Rule 1-341 is not intended as a weapon to force persons who have a questionable or innovative cause to abandon it because of a fear of the imposition of sanctions. I believe that the facts found by the trial court do not support its bad faith or lack of substantial justification findings and that the claims Nilson filed against K. King Burnett did not lack substantial justification as a matter of law. [1] Therefore, I dissent.