Legal Definitions - malicious prosecution

Malicious prosecution occurs when someone initiates a legal proceeding—either a civil lawsuit or a criminal charge—against another person without a proper legal basis and with an improper, harmful motive. For a claim of malicious prosecution to succeed, the original legal action must have ended in favor of the person who was wrongly accused or sued, and that person must have suffered damages as a result.

Here are some examples to illustrate this concept:

• Imagine a situation where a disgruntled former employee, Mr. Smith, files a lawsuit against his previous employer, Tech Innovations Inc., alleging widespread fraud. Mr. Smith knows he has no credible evidence or legitimate grounds for these serious accusations, but his true intention is to damage the company's reputation and disrupt its business operations out of revenge. After a lengthy and costly legal process, the court dismisses Mr. Smith's lawsuit entirely, finding his claims to be baseless. Tech Innovations Inc. could then sue Mr. Smith for malicious prosecution, arguing that the initial lawsuit was filed without probable cause and with a malicious intent to harm the company.

• Consider a scenario where an individual, Ms. Chen, has a personal vendetta against her neighbor, Mr. Davis. Out of spite, Ms. Chen repeatedly calls the police and files false reports, accusing Mr. Davis of various minor crimes she knows he did not commit, such as trespassing or property damage. Based on her persistent, albeit fabricated, complaints, Mr. Davis is eventually arrested and charged. However, during the investigation or at trial, it becomes clear that Ms. Chen's accusations are entirely unfounded, and all charges against Mr. Davis are dropped. Mr. Davis, having endured the stress of arrest, legal fees, and damage to his standing in the community, could then sue Ms. Chen for malicious prosecution, demonstrating that she initiated criminal proceedings against him without probable cause and with malicious intent.

• A small business owner, Sarah, has a competitor, Mark, who is consistently outperforming her. To try and gain an unfair advantage, Mark files a complaint with a regulatory board, falsely accusing Sarah's business of violating several industry regulations. Mark knows his accusations are untrue and provides no real evidence, but he hopes the investigation will tie up Sarah's resources, damage her professional credibility, and potentially lead to fines or sanctions. After a thorough review, the regulatory board finds no evidence of wrongdoing by Sarah's business and closes the complaint in her favor. Sarah could then pursue a claim of malicious prosecution against Mark, asserting that he initiated the regulatory action without a legitimate basis and with the malicious purpose of harming her business.