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Insurance Claims professional presents articles and videos on insurance, insurance Claims and insurance law for insurance Claims adjusters, insurance professionals and insurance lawyers who wish to improve their skills and knowledge. Presented by an internationally recognized expert and author.
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June 18, 2025
Malicious Prosecution Requires Successful Termination

Malicious Prosecution Tort Supported by Fabricated Evidence

See the full video at https://lnkd.in/gEkQqiVZ and at https://lnkd.in/gykZmEUf, and at https://zalma.com/blog plus more than 5100 posts.

Sarah Steinmetz filed a five-count complaint against Lindsey Pickholtz and Steven Gordon, alleging malicious prosecution, abuse of process, intentional infliction of emotional distress, and conspiracy to commit malicious prosecution because the defendants reported her to the Division of Insurance with making false statements and being arrested by the State in connection with those charges. The complaint detailed events spanning two-and-a-half years, beginning with the sale of Steinmetz’s condominium to Pickholtz and Gordon. The relationship between the parties deteriorated after a prank call incident, leading to fabricated evidence and legal actions against Steinmetz.

In Sarah Steinmetz v. Lindsey Pickholtz, et al., No. 3D24-0417, Florida Court of Appeals, Third District (June 11, 2025) most of the issues raised on appeal were resolved.

Background:

The trial court dismissed Steinmetz’s complaint with prejudice. Steinmetz appealed, arguing that the trial court erred in its decision and in denying her leave to amend.

Appeal Court Decision:

The Florida Court of Appeals affirmed the dismissal of the abuse of process and intentional infliction of emotional distress claims but reversed the “with prejudice” designation and the dismissal of the remaining counts. The court concluded that Steinmetz’s allegations were sufficient to overcome a motion to dismiss for malicious prosecution and civil conspiracy .

Key Points:

1 Malicious Prosecution: Steinmetz’s allegations of fabricated evidence and lack of probable cause were deemed sufficient to support a claim for malicious prosecution .
2 Civil Conspiracy: The court found that Steinmetz’s detailed allegations of an agreement between Pickholtz and Gordon to fabricate evidence and make false reports were adequate to support a civil conspiracy claim .
3 Abuse of Process: The court affirmed the dismissal of this claim but noted that Steinmetz should have been granted leave to amend .
4 Intentional Infliction of Emotional Distress: The court affirmed the dismissal of this claim, finding the allegations insufficient to meet the required standard .

ANALYSIS

A bona fide termination is a critical element to proof of the tort of malicious prosecution since a very early date and has been described as a pre-condition to the later action. As Justice Scalia explained in the seminal case of Heck v. Humphrey, 512 U.S. 477 (1994) one element that must be alleged and proved in a malicious prosecution action is termination of the prior criminal proceeding in favor of the accused.

Steinmetz failed to sufficiently allege that the voluntary dismissal of the civil injunction and the nolle prosequi of the criminal aggravated stalking case constituted “bona fide terminations” of the earlier proceedings, as is required to support malicious prosecution claims. Generally, whether a voluntary dismissal or nolle prosequi constitutes a bona fide termination sufficient to support a claim for malicious prosecution presents a factually dependent question, and therefore the issue is best suited for the jury as the factfinder.

Steinmetz alleged that Pickholtz, with Gordon’s assistance, instigated the former proceedings with improper purpose and without probable cause. Intentional infliction of emotional distress requires the following elements:

1. intentional or reckless conduct;
2. outrageousness beyond all bounds of decency;
3. causation; and
4. severe distress.

The second prong is the gravamen of the tort.

CONCLUSION

While the anxiety and stress of being charged by the Division of Insurance Fraud with making false statements and being arrested by the State in connection with those charges is understandable, the appellees’ behavior in investigating and then allegedly falsely reporting to the Division of Insurance that fraud was committed. However, the Court of Appeals concluded the action is not the type of conduct that is so outrageous in character and extreme in degree as to go beyond the bounds of decency and be deemed utterly intolerable in a civilized society.

ZALMA OPINION

If an insurer or a citizen learns of an attempt at insurance fraud they are obligated to report that suspicion to the Florida Division of Insurance Fraud. However, it is a tort to make such a report maliciously or in bad faith. Steinmetz claimed that she was falsely accused of fraud, was arrested by the Division of Insurance Fraud who dismissed the charge and refused to prosecute. She then claimed, but was unable to establish malicious prosecution and the Court of Appeal concluded that the accusations were not outrageousness beyond all bounds of decency.

(c) 2025 Barry Zalma & ClaimSchool, Inc.

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00:09:11
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The case involved a dispute between MONY Life Insurance Company and Bernard R. Perez, an ophthalmologist, over a disability insurance contract. Perez was diagnosed with throat cancer in 2011 and began receiving monthly disability benefits from MONY. However, MONY later suspected Perez of dishonesty in his disability claims and discontinued payments in 2018.

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When You Represent Yourself in Litigation You Have a Fool for a Lawyer

Plaintiff Gordon Clark, proceeding pro se, sued Defendant Olga L. Orengo and her auto insurance carrier, The Hanover Insurance Group, Inc. (“Hanover”), related to a motor vehicle collision between Plaintiff and Orengo. Plaintiff alleged that Orengo was at fault for the accident, but Hanover has refused to accept liability. In Gordon Clark v. The Hanover Insurance Group, Inc., No. 3:24-cv-348 (SVN), United States District Court, D. Connecticut (July 22, 2025)

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Plaintiff has brought eight claims against both Defendants and a ninth claim against Hanover for alleged violations of Plaintiff’s rights under federal and state law. Defendants have both moved to dismiss Plaintiff’s amended complaint in full for failure to state a claim. The ...

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July 29, 2025
Corporate Owners are not Innocent Co-Insureds

Arson by Insured’s Management Voids Coverage

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Read the full article at https://lnkd.in/gwkA76x5, see the full video at https://lnkd.in/gBekGhfK and at https://lnkd.in/gwReRCKz and at https://zalma.com/blog plus more than 5150 posts.

Corporate Owners are not Innocent Co-Insureds

Read the full article at https://lnkd.in/gwkA76x5, see the full video at https://lnkd.in/gBekGhfK and at https://lnkd.in/gwReRCKz and at https://zalma.com/blog plus more than 5150 posts.

Arson by Insured’s Management Voids Coverage

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Arson for Profit by Corporate Entity Management Voids Policy

Following a fire that destroyed The Press Bar and Parlor in St. Cloud, Minnesota the insurer denied coverage after its determination that Andrew Welsh – a controlling officer of the insured intentionally set the fire and submitted a false proof of loss.

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July 16, 2025
There is no Tort of Negligent Claims handling in Alaska

Rulings on Motions Reduced the Issues to be Presented at Trial

Read the full article at https://lnkd.in/gwJKZnCP and at https://zalma/blog plus more than 5100 posts.

CASE OVERVIEW

In Richard Bernier v. State Farm Mutual Automobile Insurance Company, No. 4:24-cv-00002-GMS, USDC, D. Alaska (May 28, 2025) Richard Bernier made claim under the underinsured motorist (UIM) coverage provided in his State Farm policy, was not satisfied with State Farm's offer and sued. Both parties tried to win by filing motions for summary judgment.

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3. award of punitive damages.

Both Bernier and State Farm dispositive motions before ...

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May 15, 2025
Zalma's Insurance Fraud Letter - May 15, 2025

ZIFL Volume 29, Issue 10
The Source for the Insurance Fraud Professional

See the full video at https://lnkd.in/gK_P4-BK and at https://lnkd.in/g2Q7BHBu, and at https://zalma.com/blog and at https://lnkd.in/gjyMWHff.

Zalma’s Insurance Fraud Letter (ZIFL) continues its 29th year of publication dedicated to those involved in reducing the effect of insurance fraud. ZIFL is published 24 times a year by ClaimSchool and is written by Barry Zalma. It is provided FREE to anyone who visits the site at http://zalma.com/zalmas-insurance-fraud-letter-2/ You can read the full issue of the May 15, 2025 issue at http://zalma.com/blog/wp-content/uploads/2025/05/ZIFL-05-15-2025.pdf
This issue contains the following articles about insurance fraud:

Health Care Fraud Trial Results in Murder for Hire of Witness

To Avoid Conviction for Insurance Fraud Defendants Murder Witness

In United States of America v. Louis Age, Jr.; Stanton Guillory; Louis Age, III; Ronald Wilson, Jr., No. 22-30656, United States Court of Appeals, Fifth Circuit (April 25, 2025) the Fifth Circuit dealt with the ...

May 15, 2025
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Professional Health Care Services Exclusion Effective

Post 5073

See the full video at https://lnkd.in/g-f6Tjm5 and at https://lnkd.in/gx3agRzi, and at https://zalma.com/blog plus more than 5050 posts.

This opinion is the recommendation of a Magistrate Judge to the District Court Judge and involves Travelers Casualty Insurance Company and its duty to defend the New Mexico Bone and Joint Institute (NMBJI) and its physicians in a medical negligence lawsuit brought by Tervon Dorsey.

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