Malicious prosecution is a cause of action that can occur whenever a person is the subject of a civil lawsuit or criminal charge that was initiated without probable cause and with malicious intent. In order to prove malicious prosecution, the person bringing the suit must show that the accuser initiated the action in bad faith, that the accuser lacked reasonable and probable cause, and that the accusation resulted in harm.
Businesses should be aware of malicious prosecution as it can be an expensive and damaging legal issue for any company. Malicious prosecution has civil consequences including a monetary award for damages which may be made to the subject of the malicious prosecution. It could also result in a company’s reputation being damaged if accused of acting with malice.
Examples of Malicious Prosecution
One popular example of malicious prosecution is that of a company wrongfully initiating a suit against a competitor or customer in order to intimidate or put them out of business. The false accusation may be an attempt to illegally exclude competitors, interfere with contracts or ultimately put an end to a competitor’s business. The example of a disgruntled customer sharing accusations against a company, despite the company having no evidence that the customer’s claims are true, is an example of malicious prosecution.
Protecting Your Business From Malicious Prosecution
When bringing a suit or initiating a criminal investigation against another party, businesses should make sure they have valid information and reasonable cause that there has been some wrongdoing. It is also important to conduct a thorough analysis to ensure that any action taken is reasonable and justified. Companies should be aware of the possible implications of malicious prosecution, and ensure that they are proceeding in the most judicious manner possible.
It is important for businesses to be mindful of potential malicious prosecution claims, and only move forward in legal actions if they are sure they have a valid cause for doing so. This will help to protect a business from the costs, expenses, and risks that can come with being the subject of a malicious prosecution suit.