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Chervin v. Travelers Insurance

Citations: 448 Mass. 95; 858 N.E.2d 746; 2006 Mass. LEXIS 768

Court: Massachusetts Supreme Judicial Court; December 26, 2006; Massachusetts; State Supreme Court

Narrative Opinion Summary

In this case, an insurance company initiated a medical malpractice subrogation action against a neurologist following a worker's compensation settlement, alleging inadequate care led to the claimant's injuries. The neurologist, having prevailed, sued the insurer and its attorney for malicious prosecution, abuse of process, and violations under G. L. c. 93A. The Superior Court granted summary judgment for the defendants, but the Appeals Court and subsequent appellate review reversed the malicious prosecution decision while affirming the dismissal of the G. L. c. 93A claim. The court found sufficient evidence to dispute the defendants' probable cause in initiating the lawsuit, emphasizing the absence of an expert opinion and the neurologist's responsibility. The case was remanded for further proceedings on the malicious prosecution claim, while the G. L. c. 93A and abuse of process claims were dismissed. The court adopted the 'improper purpose' standard from the Restatement (Second) of Torts, aligning with the broader interpretation of malice in malicious prosecution claims.

Legal Issues Addressed

Favorable Termination in Malicious Prosecution

Application: The dismissal of the subrogation action was considered a favorable termination for the plaintiff, satisfying one of the elements for a malicious prosecution claim.

Reasoning: The plaintiff also demonstrated that the subrogation action was terminated in his favor, as it was dismissed due to the defendant's failure to prosecute and provide necessary discovery.

G. L. c. 93A Claims in Legal Proceedings

Application: The court affirmed the dismissal of the G. L. c. 93A claim, finding no business relationship between the parties that would support such a claim.

Reasoning: The plaintiff cannot demonstrate a relevant business relationship with the defendant that would support liability under G. L. c. 93A.

Improper Purpose in Malicious Prosecution

Application: The court replaced the element of 'malice' with 'improper purpose,' examining whether the defendant initiated the action for a purpose other than proper adjudication.

Reasoning: The court has decided to replace the element of 'malice' in malicious prosecution with the 'improper purpose' concept from § 676 of the Restatement (Second) of Torts.

Malicious Prosecution in Civil Litigation

Application: The court considered whether the defendants initiated the medical malpractice action with probable cause and without malice, ultimately reversing the summary judgment on the malicious prosecution claim due to factual disputes.

Reasoning: The plaintiff appealed, arguing that summary judgment was improperly granted on the malicious prosecution claim, which involves the unjustifiable initiation of litigation.

Probable Cause in Civil Proceedings

Application: Probable cause was evaluated based on whether the defendants reasonably believed in the validity of their claim, focusing on the information available at the time of filing rather than the outcome.

Reasoning: The standard for probable cause is objective, focusing on the information known to the defendant at the time the complaint was filed, rather than the eventual outcome.