Stead-Bowers v. Langley

• Decision Date: 04 December 2001
• Docket Number: No. C6-01-423.,C6-01-423.
• Citation: 636 N.W.2d 334
• Parties: Jeannie STEAD-BOWERS, Appellant, v. Sandra LANGLEY, et al., Respondents, Mark Elias, Susan Morris, Respondents, John Does 1-10, Defendants.
• Court: Minnesota Court of Appeals

636 N.W.2d 334

Jeannie STEAD-BOWERS, Appellant, v. Sandra LANGLEY, et al., Respondents, Mark Elias, Susan Morris, Respondents, John Does 1-10, Defendants.

No. C6-01-423.

Court of Appeals of Minnesota.

December 4, 2001.

Jeffrey M. Ellis, Jeffrey M. Ellis, PLLC, Minneapolis, for appellant.

Pierre N. Regnier, Joseph E. Flynn, Jardine, Logan & O'Brien, P.L.L.P., St. Paul; and Mark W. Kelly, Kelly Law Offices, Excelsior, for respondents Sandra Langley and City of Greenwood.

Paul D. Reuvers, Iverson Reuvers, LLC, Bloomington, for respondent Mark Elias.

Thomas S. McEachron, James A. Jardine, Votel, Anderson & McEachron, St. Paul, for respondent Susan Morris.

Considered and decided by SCHUMACHER, Presiding Judge, KLAPHAKE, Judge, and PETERSON, Judge.

OPINION

ROBERT H. SCHUMACHER, Judge.

Appellant Jeannie Stead— Bowers brought a claim for malicious prosecution against respondents Sandra Langley, Mark Elias, Susan Morris, and the City of Greenwood, as well as John Does 1-10. She subsequently sought to amend her complaint to state claims for defamation, intentional infliction of emotional distress, and negligent infliction of emotional distress.

Stead— Bowers challenges the district court's dismissal of her malicious prosecution action and the denial of her motion to amend. She contends that malicious prosecution extends to actions where there was only a criminal investigation. She also contends that she properly stated claims for defamation, intentional infliction of emotional distress, and negligent infliction of emotional distress. We affirm.

FACTS

Stead—Bowers is a member of the Greenwood City Council. As a council member, she was appointed "dock master" and made responsible for the maintenance and repair of the city's public docks. She generally pays for supplies relevant to these responsibilities herself. The city council also authorized her to hire Aaron Maenke as an assistant.

In November 1998, she was re-elected to the city council. During this time, Stead—Bowers claims that Langley, Elias, Morris, and the city entered into a scheme to remove her from office. Stead—Bowers alleges that during the 1998 election, Langley approached her several times and stated that she should seek reimbursement from the city for expenses she incurred related to her dock duties. She subsequently submitted expense receipts for reimbursement to the city council. Thereafter, she claims Langley, Elias, Morris, and the city caused a document to be prepared containing Stead—Bower's forged signature in which Stead—Bowers purported to declare, subject to penalties of perjury, that her reimbursement request was just and correct. She further claims that Langley, Elias, Morris, and the city then used the forged document to induce Maenke to send a letter signed by himself and Morris to the chief of police and the city council, stating that Stead—Bowers overcharged the city when filing for reimbursement. The Hennepin County Sheriff's Department conducted a criminal investigation of the claim and found it to be lacking in factual support. The investigation was consequently closed.

Stead—Bowers thereafter brought an action, alleging malicious prosecution against Langley, Elias, Morris, the city, and John Does 1-10. Langley, Elias, Morris, and the city then brought a Rule 12 motion to dismiss for failure to state a claim. In response, Stead—Bowers filed a motion to amend her complaint to add claims for defamation, intentional infliction of emotional distress, and negligent infliction of emotional distress. The district court granted the motion to dismiss and denied Stead—Bowers's motion to amend.

ISSUES

1. Did the district court err by holding that Stead—Bowers failed to state a claim for malicious prosecution?

2. Did the district court abuse its discretion by denying Stead—Bowers leave to amend her complaint?

ANALYSIS

1. Stead-Bowers contends that the district court erred in granting Langley, Elias, Morris, and the city's Rule 12 motion to dismiss for failure to state a claim upon which relief can be granted. The district court held that in order to maintain a claim for malicious prosecution, Stead—Bowers must show that she was charged, indicted, or arrested. Stead—Bowers advocates that such a showing is not necessary.

When reviewing a dismissal for failure to state a claim upon which relief can be granted, an appellate court must only determine whether the complaint sets forth a legally sufficient claim for relief. Geldert v. American Nat'l Bank, 506 N.W.2d 22, 25 (Minn.App.1993), review denied (Minn. Nov. 16, 1993). It is immaterial whether the plaintiff can prove the facts alleged in the complaint. Juster Steel v. Carlson Cos., 366 N.W.2d 616, 619 (Minn.App.1985). A complaint should only be dismissed for failure to state a claim if it appears to a certainty that no facts consistent with the pleading exist that support granting the relief demanded. Brakke v. Hilgers, 374 N.W.2d 553, 555 (Minn.App.1985). The facts set forth in the complaint must be accepted as true, and the plaintiff is entitled to have the benefit of all favorable and reasonable inferences. Pullar v. Independent Sch. Dist., 582 N.W.2d 273, 275-76 (Minn.App.1998). The appellate court reviews de novo the claim's legal sufficiency. Barton v. Moore, 558 N.W.2d 746, 749 (Minn.1997).

This court has previously stated that the elements of malicious prosecution are

(1) the suit must be brought without probable cause and with no reasonable ground on which to base a belief that the plaintiff would prevail on the merits; (2) the suit must be instituted and prosecuted with malicious intent; and (3) the suit must ultimately terminate in favor of the defendant.

Jordan v. Lamb, 392 N.W.2d 607, 609 (Minn.App.1986) (citing First Nat'l Bank v. Marquette Nat'l Bank, 482 F.Supp. 514, 522-23 (D.Minn.1979)), review denied (Minn. Oct. 29, 1986). The question of whether the initiation of a criminal investigation alone is sufficient to constitute the basis for a malicious prosecution claim, however, is an issue of first impression in Minnesota. The Minnesota Supreme Court has stated that an action for malicious prosecution

has always been carefully circumscribed, and not favored in law, the reason being that "public policy favors * * * prosecutions and affords such protection of another in good faith and on reasonable grounds as is essential to public justice * * *." In prior malicious prosecution actions we reiterated, in dicta, our longstanding public policy of not discouraging criminal investigations.

The public policy limiting malicious prosecution actions applies with especial force to actions which would make witnesses or victims liable for their negligence in assisting criminal investigations or prosecutions. Persons having knowledge of crimes, as a fundamental duty of citizenship, are encouraged, if not obligated, to report and assist in investigation and prosecution of these crimes. We take judicial notice of the fact that many persons are regrettably reluctant to "become involved" in the reporting and investigation of crimes. A threat of an action—which does not include an element of maliciousness—would serve to further discourage citizen participation in criminal investigations and prosecutions.

Lundberg v. Scoggins, 335 N.W.2d 235, 236 (Minn.1983) (quoting 54 C.J.S. Malicious Prosecution § 3 (1948)) (citing Allen v. Osco Drug, Inc., 265 N.W.2d 639, 642 (Minn.1978)); see also Shafer v. Hertzig, 92 Minn. 171, 175, 99 N.W. 796, 798 (1904) ("It is not the policy of the law to discourage investigation into the sources of crime, or to impose such difficulties in the way of judicial proceedings therefor as to constitute barriers to the administration of justice and discourage the institution of necessary criminal prosecutions"); Smith v. Munch, 65 Minn. 256, 259-260, 68 N.W. 19, 20-21 (1896). We find this policy consideration persuasive.

We also find commentary on the issue to be persuasive. The Second Restatement of Torts states that the triggering conduct for the tort of malicious prosecution is the initiation of a criminal proceeding. Restatement (Second) of Torts § 653 (1977). Criminal proceedings are described as follows:

(1) The term "criminal proceedings" includes any proceeding in which a government seeks to prosecute a person for an offense and to impose upon him a penalty of a criminal character.

(2) Criminal proceedings are instituted when

(a) process is issued for the purpose of bringing the accused of a criminal offense before an official or tribunal whose function is to determine whether he is guilty of the offense charged, or whether he shall be held for later determination of his guilt or innocence; or

(b) without the issuance of process an indictment is returned or an information filed against him; or

(c) he is lawfully arrested on a criminal charge.

Restatement (Second) of Torts § 654 (1977). Additionally, the comments state that

formal action must be taken by an official or a tribunal before there can be that institution of criminal proceedings which the plaintiff must prove in order to make his accuser liable * * *. The mere fact that a person has submitted to a magistrate an affidavit for the purpose of securing a warrant for another's arrest or a summons for him to appear at a hearing, does not justify a finding that he has initiated criminal proceedings against the other. The proceedings are not instituted unless and until the warrant or summons is issued.

Restatement (Second) of Torts § 654 cmt. d (1977).

Keeton also comments on what constitutes the initiation of a criminal proceeding:

The proceeding must, however, have been commenced. It is not enough that a mere complaint has been made to the proper authorities for the purpose of setting prosecution in motion, where no official action ever has been taken, or that evidence has been presented to a grand jury which refuses to indict. On the other hand, it usually is held to be sufficient

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