Trident Wholesale, Inc. v. Brown
| Docket Number | A23A1472,A23A1473 |
| Decision Date | 23 January 2024 |
| Parties | TRIDENT WHOLESALE, INC. et al v. BROWN. ABDULRASOOL GHULAMHUSSAIN v. BROWN. |
| Court | Georgia Court of Appeals |
In these companion cases, the appellants challenge the trial court's denial of their motions for summary judgment in William Brown's action against them for malicious prosecution, intentional infliction of emotional distress ("IIED"), attorney fees, and punitive damages. Specifically, in Case No. A23A1472, Trident Wholesale Inc. d/b/a "Ghandi Wholesale," Farooq Ghandi, Padma Bhanela, and Chandra Sankla[1] argue (1) the trial court incorrectly analyzed the key elements of Brown's malicious-prosecution claim; (2) probable cause existed for Brown's arrest and criminal charges as a matter of law, which precluded his malicious-prosecution claim; (3) no genuine issue of material fact existed as to the malice element of this claim; (4) criminal prosecution does not satisfy the extreme/outrageous conduct element of an IIED claim; and (5) Brown's derivative claims for punitive damages and attorney fees fail because his substantive claims are without merit. In Case No A23A1473, Abdulrasool Ghulamhussain appeals the same trial-court order denying his separate motion for summary judgment, arguing (1) as to the malicious-prosecution claim a pretrial finding that probable cause existed for Brown's arrest and criminal charges created a rebuttable presumption that it existed; (2) Brown's IIED claim fails as a matter of law because his malicious-prosecution claim lacks merit; and (3) Brown's derivative claims for attorney fees and punitive damages fail because Ghulamhussain is entitled to summary judgment as to his substantive claims. For the following reasons, we vacate the trial court's order in both cases and remand for further proceedings consistent with this opinion.[2] Viewing the evidence in the light most favorable to Brown (i.e., the nonmoving party),[3] the record shows that in 2008, Brown began selling male sex-enhancement pills-which he purchased from Angel Wholesales-using the brand name "Goldreallas." In September 2010, Goldreallas was incorporated with the Secretary of State of Georgia; and shortly after that, Brown trademarked "Goldreallas" and its logo. But in 2014, Brown received a public notice, along with a cease-and-desist letter, from the United States Food and Drug Administration ("FDA"), notifying him that certain tests revealed Goldreallas were "tainted" and ordering him to stop selling them immediately. Brown believed the pills at issue were not Goldreallas because (he claims) they were never tested by the FDA. So, even though he believed the tainted pills were actually counterfeit Goldreallas, he nevertheless complied with the FDA's order to stop selling them.[4] On February 26, 2016, Brown went to Trident Wholesale d/b/a Ghandi Wholesale,[5] a wholesale supply business owned by Ghandi and Ghulamhussain, to discuss partnering with them to sell new products, such as an energy shot using the brand name Goldreallas. But when Brown arrived, he immediately noticed counterfeit Goldreallas pills for sale. And according to Brown, the pills were identical to Goldreallas in every respect, including the name, logo, color, size of the box, serial code, and packaging. As a result, Brown demanded Ghandi and Ghulamhussain stop selling the pills because they were using his brand name without compensating him; and in any event, the FDA had banned them from being sold. Later, over dinner, the men discussed the issue again and Ghandi and Ghulamhussain promised Brown they would stop selling the counterfeit Goldreallas.
Then, on April 28, 2016, Brown went to Ghandi Wholesale again to speak to Ghulamhussain about selling a new product; and when he arrived, he saw the counterfeit Goldreallas were still being sold, which made him "pretty upset." Brown then retrieved a large shopping cart and placed all of the counterfeit Goldreallas inside of it "with a sense of urgency." Ghulamhussain was not in his office; but while looking for him, Brown encountered Suman Reddy, a store employee sitting in a truck. Brown instructed Reddy to tell Ghandi to "stop infringing on [his] trademark and stop selling [the] stolen property." In response, Reddy rushed toward Brown in an aggressive manner, and Brown stuck out his hand to protect his previously injured shoulder. And according to Brown, Reddy then ran into his hand, and he "pushed [him] down."[6] After this physical altercation, Brown returned to the front of the store with the counterfeit products he confiscated and was confronted by Sankla and Bhanela, who were working as cashiers. Brown told them he was the owner of Goldreallas, and Ghandi Wholesale was not allowed to sell the counterfeit pills. One of the cashiers responded that they could sell whatever they wanted to sell. That employee then walked toward Brown, and Brown said "don't walk up on me motherfucker . . . [l]ike y'all stand back." Later, when asked whether he said this in an aggressive manner, Brown testified that making such a statement And according to Brown, the situation escalated to the point that he and Bhanela were yelling at each other. Eventually, Brown left the warehouse, taking all of the counterfeit Goldreallas with him.
About ten minutes later, Ghandi called Brown "screaming and cursing" and threatening to call 911. Brown responded by saying, "fine, call 911." When the police arrived, they took statements from the Ghandi Wholesale employees involved and reviewed security footage of the altercation between Brown and the two cashiers. Then, following an investigation into the matter, an investigator with the Forest Park Police Department issued a detailed report, concluding that there was probable cause to apply for warrants to arrest Brown for robbery by intimidation, terroristic threats, and simple battery.
Given these conclusions, the investigator applied for warrants to arrest Brown for the foregoing offenses, and the magistrate court issued them. Thereafter, Brown waived his right to a preliminary hearing "to examine the issue of probable cause" for each of the charged offenses. Ultimately, Brown was charged, via indictment, with robbery by intimidation, simple battery, and two counts of terroristic threats. Brown's case then proceeded to trial, at which a jury acquitted him of robbery by intimidation, and the trial court granted directed verdicts of acquittal as to the remaining charges.
Following trial, Brown filed suit against Trident, Gandhi, Ghulamhussain, Bhanela, and Sankla, asserting claims for malicious prosecution, IIED, attorney fees, and punitive damages. Discovery then ensued, and eventually, the Trident appellants and Ghulamhussain filed separate motions for summary judgment. The trial court later held a hearing on the matter, after which it denied both motions in a single order.
Thereafter, the trial court granted the appellants a certificate of immediate review, and these appeals follow this Court's grant of their applications for interlocutory appeals.[7]
Summary judgment is, of course, proper when "there is no genuine issue as to any material fact and the moving party is entitled to a judgment as a matter of law."[8]Additionally, a de novo standard of review "applies to an appeal from a grant or denial of summary judgment, and we view the evidence, and all reasonable conclusions and inferences drawn from it, in the light most favorable to the nonmovant."[9] And importantly, at the summary-judgment stage, we do not "resolve disputed facts, reconcile the issues, weigh the evidence, or determine its credibility, as those matters must be submitted to a jury for resolution."[10] With these guiding principles in mind, we will address the appellants' specific claims of error.
1. The Trident appellants first argue the trial court incorrectly analyzed the key elements of Brown's malicious-prosecution claim. We agree.
In order to state a claim for malicious prosecution, the plaintiff must show "(1) prosecution for a criminal offense; (2) instigated without probable cause; (3) with malice; (4) under a valid warrant, accusation or summons; (5) which has terminated favorably to the plaintiff; and (6) has caused damage to the plaintiff."[11] But the gravamen of the complaint is "the absence of probable cause on the part of the person instituting the prosecution."[12] Further, in malicious-prosecution cases, the question of probable cause is "a mixed question of law and fact."[13] Importantly, whether the circumstances alleged to show probable cause existed is "a matter of fact, to be determined by the jury, but whether they amount to probable cause is a question of law for the court."[14]
In Georgia, probable cause is defined as "the existence of such facts and circumstances as would excite the belief in a reasonable mind[ ] that the person charged was guilty of the crime for which he was prosecuted."[15] And this belief must be supported by "appearances known to the defendant at the time he initiates the prosecution, and the appearances must be such as to lead a reasonable man to set the criminal proceeding in motion."[16] On the other hand, there is a lack of probable cause when the circumstances are such "as to satisfy a reasonable man that the accuser had no ground for proceeding but his desire to injure the accused."[17] Significantly, the return of an indictment is "prima facie, though not conclusive, evidence of probable cause, as is the waiver of a...
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