This is an appeal from a malicious prosecution suit, filed in the Circuit Court of Forrest County, Mississippi, by appellee, Robert Palmer, against the defendants, James L. McCaffrey, Sr., Delbert Gandy, James L. McCaffrey, Sr., d/b/a McCaffrey’s Homelite Chain Saw Agency, and McCaffrey’s Real Estate and Insurance Agency, Incorporated, a corporation. The plaintiff below, appellee here, sought to recover damages against said defendants below, appellants here, for the malicious issuance of a criminal affidavit charging the plaintiff with the commission of a crime under Mississippi Code Annotated section 2153 (1956), commonly known as the “Bad Check Law.” From a judgment in favor of Robert Palmer, appellee, the appellants, McCaffrey’s Real Estate and Insurance Agency, Inc., a corporation, and Delbert Gandy' take this appeal. The judgment was for the sum of $10,000. Stating the prolix and disputed facts in this case as laconically as possible we find that during the month of February 1962 one H. D. Lumpkin purchased from James L. McCaffrey, Sr., d/b/a McCaffrey’s Homelite Chain Saw Agency, which was owned and operated individually by James L. McCaffrey, Sr., hereinafter called James L. McCaffrey, Sr., d/b/a Agency, a saw. H. D. Lumpkin executed a note for the purchase price of the saw. On February 13, 1962, the appellant McCaffrey’s Real Estate and Insurance Agency, Inc., a corporation, hereinafter called McCaffrey’s Inc., purchased from J. L. McCaffrey, Sr., d/b/a Agency, IT. D. Lumpkin’s note. On or about May 12, 1962, H. D. Lump-kin in turn sold his equity in the saw to appellee Palmer, who assumed payment of the balance due on the saw in the sum of $52.31. Subsequent to purchasing the saw from H. D. Lumpkin, appellee Palmer made one payment of $10, leaving a balance due and owing of $42.31 to McCaffrey’s Inc. On September 26, 1962, appellee Palmer was issued a check made by one Edwin Lennep,
Mrs. Ruth Ingram was the manager and vice-president of McCaffrey’s, Inc. Mrs. Ingram was in charge of real estate and loans. The record discloses that she had the authority to hire and fire persons employed by Mc-Caffrey’s Inc., and the record also indicates that she had employed appellant Gandy as an outside collector on a mileage and percentage basis.
On October 5, 1962, appellee Palmer and his wife came to McCaffrey’s, Inc., and advised the manager, Mrs. Ruth Ingram, that he wanted to pay off the saw note which he had assumed from Mr. Lumpkin. Appellee Palmer presented to Mrs. Ingram the check for $94.58, dated September 26, 1962, made by Edwin Lennep payable to the appellee. The appellee endorsed the check and the record discloses that he then requested that Mrs. Ingram ascertain whether or not the check was good. This is disputed by Mrs. Ingram who says that she did not have the cash in her office and had to go to a back office to obtain sufficient cash, while appellee says that she went to the back office in order to determine whether or not the check was good.' Whether she did or did not advise appellee upon her return that the check was good, she nevertheless cashed the check and credited the appellee' with $42.31, the balance due and owing on the Lumpkin note. The balance of $52.27 cash was delivered to the appellee. 'The record discloses that the check was then presented to the Merchants & Marine Bank of Moss Point, Mississippi, and that the check was dishonored by the bank because of insufficient funds and was returned to McCaffrey’s, Inc., marked unpaid because of this fact. •'
Subsequent to leaving the Forrest County jail, the appellee Robert Palmer went to the Justice of the Peace Bradley and asked him what he should do about it and testified that Bradley advised him to pay off the indebtedness. Appellee Palmer then went to the district attorney who advised him, after discussing the matter with him, that he had not committed a crime. The record discloses that nothing further was done by appellants subsequent to the filing of the affidavit with Justice of the Peace Bradley. It appears that no preliminary hearing was held before the justice of the peace for the appellee, nor did the appellant Delbert Candy go before the grand jury, nor did the grand jury indict the appellee. It appears that several grand juries have convened subsequent to the filing of the suit at bar and that nothing has been done by any of them with reference to indicting the appellee. As proof of damages sustained by appellee, the record shows that four or five of his associates, companions and friends referred to him as being a jailbird, and that Ms boy Jimmie had heard some of his classmates at school say that Ms father was a jailbird. Insofar as actual financial losses are concerned, there is no testimony other than that of the appellee, who testified that prior to the time of his alleged arrest he was making $150 to $200 per week, and that subsequent thereto he has made only $75 per week, because no one will.sell him timber. The proof, however, shows that he was salvaging sunken logs out of swamps and creeks, and the record wholly fails to show that he endeavored to piirchase any standing timber from anyone. The names of no timber owners were
Addressing ourselves to the errors set forth in the briefs of the appellants, we find that eleven errors are assigned by the appellants, Delbert Gandy, and McCaffrey’s, Inc. The appellant, Delbert Gandy, assigns eight errors in his appeal from the verdict and judgment of the trial court. While considering all the errors assigned by both appellants, we will not comment thereon unless they are treated in the briefs of these appellants or appellees, or unless we feel that the errors merit discussion on our part. The assignments of error urged by both appellants clearly show that the basic legal questions presented by the evidence and set out in the briefs of counsel are: .(1) Whether or not the appellant, McCaffrey’s, Inc., was liable for the actions of the appellant, Delbert Gandy; and (2) whether or not appellant Gandy is liable for his actions in the alleged malicious prosecution and arrest of the appellee, Robert Palmer. At the outset, we hold that appellant Gandy is liable to the appellee for his acts in the criminal proceedings for the reasons hereinafter given. Insofar as the first question is concerned, the law in Mississippi governing the liability of the principal or employer for malicious prosecution which was instituted by an employee or agent, has been well established and long recognized. The rule is simply that an employer or principal is liable for malicious prosecution carried on by a servant or agent provided (1) that the act of the agent was expressly authorized, (2) that the act was within the scope of the agent’s employment, or (3) that the acts of the agent were ratified by the master, and it is incumbent upon the plaintiff to so show. Russell v. Palentine Ins. Co.,
“The principles of law governing the liability of an employer or principal for a malicious prosecution instituted or carried on by a servant or agent are simple, and any difficulty which may arise grows out of their application to the facts of a particular case. If the prosecution was previously authorized or subsequently ratified, or if within the scope of the servant’s or agent’s employment, the employer or principal is liable . . . .” The proof in this case shows that the appellant, Delbert Gandy, was employed as outside collector by McCaffrey’s, Inc. The record further shows that he attempted to collect the indebtedness due by the appellee and that he failed to do so; that the check given by the appellee in payment of his indebtedness had been issued by Lennep, who lacked sufficient funds so that the check could be cashed; that two efforts were made to cash this check on the part of the appellant, McCaffrey’s, Inc., and that after the second failure to cash the check, the vice-president and general manager of McCaffrey’s, Inc., Mrs. Ingram, instructed appellant Gandy to proceed to make an affidavit against the appellee, Robert Palmer, under the “Bad Check Law.” The record shows that appellant Gandy testified that he would have been fired if he had not done what “she tell me” to do, and further, appellant Gandy testified that he filed the affidavit because he wanted to collect the debt, out of which payment he was to receive ten per cent, and because his employer told him to do so. The facts in this case are sufficient for the lower court to have held that the agent or employee Delbert Gandy was expressly authorized by Mrs. Ingram to make the affidavit against appellee Palmer. It is unnecessary, therefore, for us to consider the question of whether or not this procedure was subsequently ratified by Mc-Caffrey’s, Inc., or whether the appellant, Delbert Gandy,
As appellants urge, there is striking similarity between the case at bar and the Hudson v. Pevsner case. This similarity however does not prevent the cases from being easily distinguished. It is the great factual differences and not the similarities which prevent the same rule of law which denied liability in Hudson v. Pevsner from so operating in the case at bar.
In the Pevsner case the servant and employee, Mrs. Wigman, had been employed for a month only. Her limited duties were to open and close the diamond shop each day, to generally take care thereof, to he in charge of the sales of merchandise and the collections therefor. Her employer, Pevsner, knew nothing about the affidavit being made when the check was dishonored, and never ratified what Mrs. Wigman had done. In the case at bar Mrs. Ingram was more than an employee; she was the vice-president and general manager of Mc-Caffrey’s, Inc., and had been for some time. Mrs. Ingram had complete authority to operate the business as she saw fit. The president, James L. McCaffrey, Sr., testi
Likewise, this case is distinguishable from Brown v. Kisner,
Appellant, McCaffrey’s, Inc., urges that the case of Russell v. Palentine Ins. Co.,
“Should we hold that appellee (master and employer) was responsible for the acts of Klein (servant and employee), it would be to hold, when an authority to collect a debt is shown, the law will imply the authority toinstitute criminal proceeding's against the debtor in case the debtor fails or refuses to pay. We do not believe that this is sound in reason or in law.”
In the instant ease, we neither question this rule of law as announced in that case under the facts therein, nor do we restrict or extend its operation. It simply is not operative and controlling in the case at bar because here we do not imply the authority of the appellant, McCaffrey, Inc., to institute criminal proceedings. Its officer, Mrs. Ingram, its alter ego, had the authority to institute criminal proceedings, which authority was exercised. It was unnecessary, as the record discloses, for a meeting of the Board of Directors of appellant, McCaffrey’s, Inc., to be held, and a resolution spread upon the minutes of said corporation, authorizing the criminal proceeding. The business world does not and could not efficiently so operate. In the instant case, the vice-president and general manager, in the absence of any proof to the contrary, had the authority, the legality, wisdom and exercise to do that which is questioned here.
The question which must next be considered is: Are the elements necessary to maintain the malicious prosecution action in Mississippi sufficiently established under the facts of this case1? In Harvill v. Tabor,
“In order to maintain an action for malicious prosecution, the plaintiff must establish the following elements: (1) The institution or continuation of original judicial proceedings, either criminal or civil; (2) by, or at the instance of the defendants; (3) the termination of such proceeding in plaintiff’s favor; (4) malice in instituting the proceeding; (5) want of probable cause for the proceeding; and (6) the suffering of damages as a result of the action or prosecution complained of.”
“It has frequently been held that there is a sufficient termination to meet the requirements in this respect in an action for malicious prosecution where the prosecution is abandoned either by the prosecuting attorney or the complaining witness. ...” See cases cited thereunder. We held in Conn v. Helton,232 Miss. 462 ,99 So. 2d 646 (1958) that where the defendant did not appear anywhere to press charges against the plaintiff, who had been discharged in habeas corpus proceedings, for all intents and purposes the prosecution had been terminated. In that case, as in the case at bar, there was no preliminary hearing; only the affidavit was filed and the arrest made. There was nothing further done. The charges were not presented to the grand jury. In the instant case several grand juries have met. The appellee was not even bound over to the grand jury, and the district attorney stated he would not accept the charge against appellee. The proceedings have been terminated in appellee’s favor. (4) the element of malice in the institution of the criminal proceeding is present. We held in Kitchens v. Barlow,164 So. 2d 745 (Miss. 1964) that when the prosecution is for the purpose of using criminal processes of the law to collect a debt, such fact supplies the element of malice as a basis formalicious prosecution. In State Life Insurance Company of Indianapolis, Indiana v. Hardy, 189 Miss. 266 , 277,195 So. 708 , 713 (1940), we stated: “The term ‘malice,’ in the law of malicious prosecution, is used in an artificial and legal sense, and simply means that the prosecution was instituted ‘primarily because of a purpose other than that of bringing an offender to justice’; 3 Rest. Torts, Page 380, and Sec. 653; and instituting a prosecution for the purpose of aiding in the collection of a debt is for an improper purpose and therefore malicious. Odom v. Tally,160 Miss. 797 ,134 So. 163 ; Grenada Coca Cola Company v. Davis,168 Miss. 826 ,151 So. 743 ; and in O’Bryant v. Coleman,169 Miss. 776 ,152 So. 59 ,154 So. 259 . . . .”
It is undisputed in the instant case that the criminal proceedings were instituted (a) to collect a debt, and (b) because Gandy was ordered to do so. (5) There is a complete lack of probable cause for the proceedings in that the county attorney advised against it, and the justice of the peace at the outset would not take the affidavit and institute the proceedings without authorization from someone with authority. The appellants abandoned the proceedings and the district attorney stated that no criminal offense had been committed and he would not have entertained an indictment of the appellee, Palmer. (6) It is the element of suffering damages as a result of the prosecution which presents a vexing question. We pointed out in State Life Insurance Company v. Hardy,
supra,
that ‘ ‘ a plaintiff, in a malicious prosecution case, may recover ‘damages for (a) the harm to his reputation which normally results from such an accusation as that brought against him, and (b) the distress which normally results from the initiation of such proceedings.’ ” 189 Miss, at 280,
The record discloses that appellee was arrested at his home when he was with his family. The
No special damages were set forth in the declaration, and the only actual monetary loss shown is the one dollar paid by appellee when booked in jail, and the loss in weekly earning of $75 to $125 to which appellee alone testified. Appellee failed to show any actual expenses he had incurred because of the criminal proceeding. Some of appellee’s witnesses testified that in their opinion his reputation was the same, and as good as it was before the affidavit was made and he was ar
We hold, therefore, that the proof offered by the appellee is insufficient to show the suffering and damages which the amount of the verdict indicates the appellee sustained. The proof is inadequate to show that appellee’s good name and reputation have been damaged, or that he has been distressed to the extent the verdict and judgment represent. Our initial inclination was to simply reverse the judgment and remand the case for retrial as to damages only. However, since we find no errors in the actual trial of the case, and no reversible error committed in the granting or refusing of instructions, if, within fifteen days from the date this judgment becomes final, the appellee accepts a remittitur of $6,000, the judgment will be affirmed. If the appellee does not do so, this case is reversed and remanded, but as to damages only.
Reversed and remanded unless the appellee accepts the specified remittitur.
