Lawyer Acquitted from Fraud Charges Sues Prosecutor & Insurer Who Reported Her
Post 5192
See the full video at https://rumble.com/v6z698a-acquittal-is-only-one-part-of-a-malicious-prosecution-action.html and at https://youtu.be/XOVL8CG6gv4, and at https://zalma.com/blog plus more than 5150 posts.
Probable Cause for Arrest Eliminates Claim of Malicious Prosecution
In Leslie Casaubon v. Texas Mutual Insurance Company and Donna R. Crosby, Travis County District Attorney, No. 1:19-CV-617-RP, United States District Court, W.D. Texas, Austin Division (September 12, 2025) Texas Mutual Insurance Company (“Texas Mutual”) and Donna R. Crosby’s (“Crosby”) (together, “Defendants”) moved to dismiss the suit filed by Leslie Casaubon.
BACKGROUND
Leslie Casaubon, a workers’ compensation attorney, who brought claims against Texas Mutual Insurance Company and Donna R. Crosby, a Travis County District Attorney. Casaubon alleged that Texas Mutual and Crosby conspired to bring false charges of insurance fraud against her due to her success in obtaining favorable decisions against Texas Mutual.
Defendants secured two grand jury indictments against Casaubon for insurance fraud, for which Casaubon alleges Crosby used false or misleading evidence. Casaubon was ultimately acquitted of all charges by a jury .
LEGAL FINDINGS
The court dismissed Casaubon’s claims against Crosby for false arrest, defamation, tortious interference, and conspiracy without prejudice. Crosby’s motion was denied as to Casaubon’s malicious prosecution claim and Section 1983 claim to the extent Crosby is not protected by immunity .
Casaubon’s claims against Texas Mutual for malicious prosecution, false arrest, tortious interference, and conspiracy were dismissed without prejudice. Texas Mutual’s motion was denied as to Casaubon’s defamation claim. The court found that Casaubon sufficiently alleged her defamation claim against Texas Mutual, but not against Crosby.
The court concluded that Casaubon failed to state a claim against Crosby for defamation as she did not identify any specific false statement Crosby made. The court found that Casaubon failed to state a claim for malicious prosecution against Texas Mutual as she did not plausibly allege that Texas Mutual initiated or procured her prosecution.
DISCUSSION
Immunity – Texas Mutual’s Immunity
As a threshold matter, Texas Mutual asserts it is entitled to immunity for its actions that give rise to Plaintiff s claims. Under Texas law, insurers must report suspected fraudulent activity and are “not liable in a civil action . . . and a civil action may not be brought . . ., for furnishing information relating to a suspected, anticipated, or completed fraud insurance act.” Tex. Ins. Code Ann. § 701.052(a) (West). Further, Texas has specifically granted Texas Mutual immunity for “identifying or referring a person for investigation of or prosecution for a possible administrative violation or criminal offense.”
CROSBY’S IMMUNITY
Despite relying on sovereign immunity, Crosby opens her motion by observing that Plaintiff sues Crosby, presumably in her individual capacity only. As Crosby interprets Plaintiff’s state-law torts to be against Crosby in her individual capacity, sovereign immunity does not apply.
Crosby argued Plaintiff must satisfy Rule 9’s requirement of pleading with particularity Plaintiff alleges Crosby intentionally presented false evidence to the grand juries. An allegation that misleading and fabricated evidence was presented to the grand jury is a serious charge, and if properly pleaded, could state an actionable wrong if the Defendants knowingly or with reckless disregard for the truth presented false evidence to the grand jury. Crosby argues Plaintiff fails to plead the “who, what, when, where, and how” of the alleged fraud because Plaintiff does not specify any particular statements made or proffered by Crosby or explain why they were fraudulent.” The Court agreed that Plaintiff failed to identify the allegedly false evidence Crosby presented to the grand juries or explain why it was indeed false. Plaintiff failed to plead with particularity the allegedly false evidence before the grand juries.
Against Texas Mutual, the Court found Plaintiff fails to state a claim for malicious prosecution, false arrest, tortious interference, and conspiracy, but succeeds in stating her claim for defamation. Against Crosby, Plaintiff fails to state a claim for false arrest, tortious interference, conspiracy, and defamation.
MALICIOUS PROSECUTION
Crosby and the grand juries’ roles in initiating and procuring Plaintiff’s prosecution was left to both Crosby and two grand juries after Texas Mutual reported Plaintiff. Because a person is not liable for merely aiding or cooperating in causing a criminal prosecution the Court found Plaintiff failed to state a claim against Texas Mutual for malicious prosecution.
FALSE ARREST
To sufficiently state a claim for false arrest, Plaintiff must show her arrest was made without authority of law. Because Plaintiff was arrested following her indictment, there was probable cause for her arrest, meaning her arrest was not made without authority of law. Therefore, Plaintiff’s claims for false arrest against Texas Mutual and Crosby were dismissed.
TORTIOUS INTERFERENCE
Plaintiff alleges that as a result of Defendants’ actions, clients of her workers’ compensation practice terminated their contracts with her. The Court dismissed Plaintiff’s tortious interference claims against Texas Mutual and Crosby.
DEFAMATION
Finally, the Court found Plaintiff sufficiently alleged her defamation claim against Texas Mutual, but not against Crosby. Accordingly, the Court finds Plaintiff stated a claim against Texas Mutual for defamation.
Plaintiff failed to state a claim against Crosby for defamation. Plaintiff vaguely alleged Crosby’s entire prosecution of her was defamatory, but such allegations are too broad and conclusory to survive a 12(b)(6) motion.
ZALMA OPINION
In the United States reporting a person to prosecutors for a crime is privileged unless made with malice. In this case the charges went to a grand jury that issued an indictment that established probable cause for arrest. That she was acquitted established only that the state failed to prove her claims of malicious prosecution and other torts beyond a reasonable doubt. She may attempt to prove that Texas Mutual defamed her. Note, truth is a perfect defense to a defamation action and the fact that a grand jury issued an indictment indicates that the reports Texas Mutual were truthful.
(c) 2025 Barry Zalma & ClaimSchool, Inc.
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No Right to Subrogation Against Tenant
Post 5231
Not Fair to Require Tenant to Pay for Damage Insured by LandlordSee the video at https://lnkd.in/gFkrp_6M and at https://lnkd.in/gQdFQBWj and at https://zalma.com/blog plus more than 5200 posts.
See the video at and at
For Insurer to Subrogate Lease Must Require Tenant to Obtain Insurance for the Benefit of the Landlord
In AmGUARD Insurance Co. v. Tyrone Ellis and Shakyra Ellis, U.S. District Court, District of Connecticut Civil No. 3:25-cv-946 (JCH) (November 19, 2025), Judge, Janet C. Hall the defendant’s Motion to Dismiss the Amended Complaint on the basis of Connecticut’s anti-subrogation doctrine required dismissal.
KEY FACTS
Landlord Michael Caldwell, a Connecticut citizen, owned a multi-family building in Windsor, Connecticut. Defendants Tyrone and Shakyra Ellis were residential tenants in the building. On or about March 1, 2025, a fire ...
Debt Resulting from Fraud is Not Dischargeable in Bankruptcy
Post 5230
Read the full article at https://lnkd.in/gpF3y7Vd, see the video at https://lnkd.in/gR5cVcbY and at https://lnkd.in/gch6Q4_V, and at https://zalma.com/blog plus more than 5200 posts.
Knowing Misappropriation and Conversion of Funds is Fraud
In re Matthew Jene Tubbs (Bankr. N.D. Tex., Fort Worth Div., No. 22-42728-MXM-7; Adv. No. 23-04019-mxm), October 15, 2025 .
Key Facts
Plaintiffs (Robles) and Defendant (Tubbs) met through their church; both held leadership roles. In Feb 2021 Robles home suffered major water damage from Winter Storm Uri and insurance paid $173,000.
In the Fall of 2021: Tubbs represented to Mr. Robles that he personally built a newer house and large barn on his parents’ property “with his own hands” (except foundation/insulation). That he had 10 years’ experience overseeing window/door installations at a major home-improvement chain, was a licensed contractor (false) and carried general contractor liability insurance.
Relying on ...
See full video at https://lnkd.in/gtnsH3SW and at https://lnkd.in/geJ4FseF, and at https://zalma.com/ and at https://lnkd.in/gC2wmzqZ.
ZIFL-Volume 29 Number 22
THE SOURCE FOR THE INSURANCE FRAUD PROFESSIONAL
Post 5228
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/
Read the full 20 page issue of ZIFL at http://zalma.com/blog/wp-content/uploads/2025/11/ZIFL-11-15-2025-1.pdf
Man Bites Dog Story – Hertz Sues Alleged Fraudsters
Hertz Successfully Refuses to Pay Alleged Fraudulent Health Care Providers
Proactive Victim of Fraud Defeats Health Care Providers
More McClenny Moseley & Associates Issues
This is ZIFL’s thirty eighth installment of the saga of McClenny, Moseley & Associates and its problems with the federal courts in the State of Louisiana and what appears to be ...
The Professional Claims Handler
Post 5219
Posted on October 31, 2025 by Barry Zalma
An Insurance claims professionals should be a person who:
Can read and understand the insurance policies issued by the insurer.
Understands the promises made by the policy.
Understand their obligation, as an insurer’s claims staff, to fulfill the promises made.
Are competent investigators.
Have empathy and recognize the difference between empathy and sympathy.
Understand medicine relating to traumatic injuries and are sufficiently versed in tort law to deal with lawyers as equals.
Understand how to repair damage to real and personal property and the value of the repairs or the property.
Understand how to negotiate a fair and reasonable settlement with the insured that is fair and reasonable to both the insured and the insurer.
How to Create Claims Professionals
To avoid fraudulent claims, claims of breach of contract, bad faith, punitive damages, unresolved losses, and to make a profit, insurers ...
The History Behind the Creation of a Claims Handling Expert
The Insurance Industry Needs to Implement Excellence in Claims Handling or Fail
Post 5210
This is a change from my normal blog postings. It is my attempt. in more than one post, to explain the need for professional claims representatives who comply with the basic custom and practice of the insurance industry. This statement of my philosophy on claims handling starts with my history as a claims adjuster, insurance defense and coverage lawyer and insurance claims handling expert.
My Training to be an Insurance Claims Adjuster
When I was discharged from the US Army in 1967 I was hired as an insurance adjuster trainee by a professional and well respected insurance company. The insurer took a chance on me because I had been an Army Intelligence Investigator for my three years in the military and could use that training and experience to be a basis to become a professional insurance adjuster.
I was initially sat at a desk reading a text-book on insurance ...
The History Behind the Creation of a Claims Handling Expert
The Insurance Industry Needs to Implement Excellence in Claims Handling or Fail
Post 5210
This is a change from my normal blog postings. It is my attempt. in more than one post, to explain the need for professional claims representatives who comply with the basic custom and practice of the insurance industry. This statement of my philosophy on claims handling starts with my history as a claims adjuster, insurance defense and coverage lawyer and insurance claims handling expert.
My Training to be an Insurance Claims Adjuster
When I was discharged from the US Army in 1967 I was hired as an insurance adjuster trainee by a professional and well respected insurance company. The insurer took a chance on me because I had been an Army Intelligence Investigator for my three years in the military and could use that training and experience to be a basis to become a professional insurance adjuster.
I was initially sat at a desk reading a text-book on insurance ...
