Bell Ex Rel. Snyder v. ICARD, ETC.

             IN THE SUPREME COURT OF TENNESSEE
                        AT KNOXVILLE
                                            FILED
                                           FOR PUBLICATION
                                               March 1, 1999
FRANCES MILLER BELL by               )     Filed: March 1, 1999
JANET SNYDER, Conservator &          )       Cecil Crowson, Jr.
Attorney-In-Fact,                    )     Appellate Court Clerk
                                     )
                                     )
     Plaintiff-Appellant,            )     Hon. Wheeler Rosenbalm,
                                     )     Judge
V.                                   )
                                     )     KNOX CIRCUIT
ICARD, MERRILL, CULLIS, TIMM,        )
FUREN AND GINSBURG, P.A.; and        )     Supreme Court
WILLIAM GORDON BELL; and             )     No. 03S01-9809-CV-00101
HUNTON & WILLIAMS; and               )
LONG, RAGSDALE AND WATERS,           )
                                     )
     Defendants-Appellees.           )



FOR APPELLANT                   FOR APPELLEE
FRANCIS MILLER BELL:            ICARD, MERRILL, CULLIS, TIMM,
William R. Willis, Jr.          FUREN & GINSBURG, P.A.:
Alan D. Johnson                 William T. Ramsey
WILLIS & KNIGHT                 W. David Bridgers
Nashville, Tennessee            NEAL & HARWELL, PLC
                                Nashville, Tennessee

                                FOR APPELLEE WILLIAM G. BELL:
                                Thomas S. Scott, Jr.
                                Dan D. Rhea
                                ARNETT, DRAPER & HAGOOD
                                Knoxville, Tennessee

                                FOR APPELLEE HUNTON & WILLIAMS:
                                John P. Konvalinka
                                Susan Kerr Lee
                                Tonya Kennedy Cammon
                                GRANT, KONVALINKA & HARRISON
                                Chattanooga, Tennessee

                                FOR APPELLEE LONG, RAGSDALE &
                                WATERS:
                                Darryl G. Lowe
                                LOWE, SHIRLEY & YEAGER
                                Knoxville, Tennessee




                             OPINION

TRIAL COURT AND
COURT OF APPEALS AFFIRMED.                           DROWOTA, J.
     We granted this appeal to determine whether the plaintiff’s complaint states

a cause of action for abuse of process. We conclude that the complaint fails to

allege one of the essential elements of the tort -- an improper act in the use of

process. Accordingly, we affirm the judgment of the Court of Appeals which

upheld the trial court’s dismissal of the plaintiff’s complaint for failure to state a

claim upon which relief can be granted. Tenn. R. Civ. P. 12.02(6).




                                            BACKGROUND

     This action arose from a dispute over the property of the plaintiff, Frances

Miller Bell. Frances Bell is the widow of Malvern Bell. Janet Snyder is Frances

Bell’s daughter from a previous marriage and is currently serving as Frances Bell’s

conservator and attorney-in-fact. The defendant, William Bell, is Malvern Bell’s

nephew. The other defendants are various law firms that have represented

William Bell in various legal proceedings. Because this action was dismissed for

failure to state a claim upon which relief can be granted, the following summary of

facts alleged in the plaintiff’s complaint are taken to be true.1



     Frances Bell and Malvern Bell were married in 1976. It was the second

marriage for both. Because Frances Bell was an independently wealthy divorcee

and Malvern Bell had a relatively small net worth, they executed a prenuptial

agreement which provided that each would maintain and devise his or her own

respective estate independent of the other.



       1
           Ezell v . Coc krell , 902 S.W .2d 394, 396 (Tenn. 1995 ).

                                                     -2-
     In October of 1994, while she and Malvern Bell were living in Florida,

Frances Bell suffered a stroke which impaired her ability to walk, talk, and write.

Following the stroke, Frances Bell signed a durable power of attorney naming

Malvern Bell as her attorney-in-fact. Janet Snyder, who lived in Knoxville at this

time, spoke with Frances Bell before the power of attorney was signed and agreed

it was necessary if Frances Bell intended to remain in Florida. Over the ensuing

months Frances Bell’s condition worsened, and in March of 1995, she was

relocated from Florida to a Knoxville nursing home near Snyder’s residence.

Malvern Bell remained in Florida.



     Not long after Frances Bell relocated to Knoxville, Malvern Bell’s health

deteriorated. On the advice of Snyder, Frances Bell executed a new durable

power of attorney which added Snyder as her alternate attorney-in-fact and

provided that it was made in conformance with Tennessee and Florida law.

Malvern Bell’s health continued to decline and on October 26, 1995, he was

declared incompetent and Snyder became attorney-in-fact for Frances Bell.

Malvern Bell died a week later on November 3, 1995.



     After Malvern Bell’s death, Frances Bell, by and through Snyder, her

attorney-in-fact, sued William Bell in Florida for conversion of her funds and

misappropriation of a personal computer. This lawsuit concerns allegations that

Malvern Bell, during the time he had power of attorney over his wife’s affairs,

misappropriated more than one million dollars of Frances Bell’s assets and placed

them into the Malvern Hill Bell Trust (“Trust”). Frances Bell was named a life-

income beneficiary of the Trust with William Bell and his four sisters receiving the

                                         -3-
remaining funds under Malvern Bell’s will. William Bell was also named trustee.



       William Bell retained the law firm of Icard, Merrill, Cullis, Timm, Furen &

Ginsburg (“Icard Merrill”), a defendant in this appeal, to represent him in the

Florida litigation. On December 6, 1995, William Bell, by and through counsel,

filed a motion to dismiss or abate the Florida action asserting that Snyder was the

true party pursuing the action under a durable power of attorney that was invalid

under Florida law.



       On December 11, 1995, five days after filing the motion to dismiss or abate

the Florida action, William Bell, represented by the law firm of Long, Ragsdale, &

Waters, a defendant in this appeal, filed a petition in the Chancery Court of Knox

County seeking appointment of a conservator for Frances Bell. The petition

alleged that Snyder had brought the Florida litigation under an invalid power of

attorney and for an improper purpose and asserted that an attorney conservator,

David Draper, should be appointed to determine whether the Florida litigation was

in Frances Bell’s best interest.



       During arguments before the Florida court on William Bell’s motion to

dismiss or abate, an attorney with Icard Merrill challenged Snyder’s authority to

institute suit pursuant to the power of attorney. In support of this challenge, the

attorney cited a Florida statute2 which suspends all powers of attorney during the


         2
           Florida Statutes Annotated § 709.08(c)(1) (West 1997) provides in pertinent part: “If any
person or entity initiates proceedings in any court of competent jurisdiction to determine the
princ ipal’s in cap acity, th e aut hority g rante d und er the dura ble po wer o f attor ney is s usp end ed un til
the p etition is dism isse d or w ithdra wn. N otice of the petitio n m ust b e ser ved u pon all atto rneys in
fact nam ed in any po wer of atto rney which is know n to the pe titioner.”

                                                         -4-
pendency of an “incapacity proceeding“ and informed the Florida court that a

conservatorship proceeding was pending in Tennessee.3 According to the

complaint, the Icard Merrill attorney also informed the Florida court that William

Bell had no interest in Frances Bell’s welfare and the only motive in filing the

conservatorship proceeding in Tennessee was to affect the Florida litigation.



       Approximately two weeks later, on February 1, 1996, William Bell voluntarily

dismissed the Tennessee conservatorship petition. On February 15, 1996,

Snyder filed a conservatorship petition in Knox County Chancery Court seeking to

have the Chancellor name Snyder as Frances Bell’s conservator. On February

21, 1996, Snyder also filed against William Bell an abuse of process and

malicious prosecution suit on behalf of Frances Bell. William Bell retained the law

firm of Hunton & Williams, also a defendant in this appeal, to represent him in that

action.



      On June 4, 1996, William Bell, again represented by Long, Ragsdale, &

Waters, filed a second petition to have a Knoxville attorney, John A. Walker, II,

appointed conservator for Frances Bell. This petition again alleged that an

independent conservator was necessary to evaluate whether or not the Florida

litigation was in Frances Bell’s best interests. On June 28, 1996, the

conservatorship petitions were consolidated.



       On July 1, 1996, Frances Bell voluntarily dismissed her suit for abuse of


        3
         According to the brief filed on behalf of appellee William Bell, the Florida court did not stay
the lawsu it in Florida.

                                                  -5-
process and malicious prosecution. On July 30, 1996, during hearings before the

Florida court, an attorney for Icard Merrill explained that the conservatorship

proceeding in Tennessee had been brought for two reasons: 1) to protect Frances

Bell’s interests since she was a life-income beneficiary of the Malvern Hill Bell

Trust which was a defendant in the Florida litigation; and 2) to protect the interests

of all the trust beneficiaries by challenging the authority of Snyder to pursue

litigation against the Trust on behalf of her mother.



         On August 16, 1996, the Chancellor heard arguments on Snyder’s

motion to dismiss William Bell’s second conservatorship petition. At this hearing

William Bell was represented by both Hunton & Williams and Long, Ragsdale &

Waters. The Chancellor granted Snyder’s motion and dismissed the second

petition. Thereafter, on August 19, 1996, W illiam Bell moved to intervene in

Snyder’s conservatorship proceeding. The Chancellor denied the motion to

intervene, and Snyder was appointed conservator on November 7, 1996.



     On January 13, 1997, Snyder filed the present suit on behalf of Frances Bell

against William Bell and the law firms which have represented him in the Florida

litigation and in the conservatorship proceedings in Tennessee. The complaint

alleges that William Bell and the law firm defendants, acting in concert, filed the

two petitions for the appointment of an independent conservator for Frances Bell

solely to “scuttle” the Florida lawsuit against William Bell. The complaint sought

damages for abuse of process and civil conspiracy to abuse process.



     Pursuant to Tenn. R. Civ. P. 12.02(6), each of the defendants filed motions

                                          -6-
to dismiss the complaint for failure to state a claim upon which relief can be

granted. Following a hearing, the trial court granted the motions and dismissed

the plaintiff’s complaint as to all defendants stating that the complaint contained


     no allegation from which proof then can be adduced to support that the
     defendants in the course of all these activities that have been attributed
     to them actually abused process; that is, they used the process of the
     Chancery Court after it was issued for some purpose for which that
     process was not designed in the prosecution of conservatorship
     proceedings.


     The plaintiff appealed, and the Court of Appeals affirmed the trial court’s

dismissal, finding that even if the complaint were assumed arguendo to allege an

ulterior motive in the use of process, the trial court’s dismissal was proper

because the complaint did not allege the second element of the tort -- an improper

act in the use of process. The Court of Appeals emphasized that the “mere

existence of an ulterior motive in doing an act . . . does not suffice,” and stated

that “merely instituting civil proceedings is generally not sufficient to support an

abuse of process claim.” Thereafter we granted the plaintiff’s application for

permission to appeal and now affirm the judgment of the Court of Appeals.




                              STANDARD OF REVIEW

     A Tenn. R. Civ. P. 12.02(6) motion to dismiss for failure to state a claim upon

which relief can be granted tests only the legal sufficiency of the complaint, not the

strength of a plaintiff’s proof. Such a motion admits the truth of all relevant and

material averments contained in the complaint, but asserts that such facts do not

constitute a cause of action as a matter of law. In ruling upon a motion to dismiss,


                                          -7-
courts should construe the complaint liberally in favor of the plaintiff, taking all

allegations of fact as true. The motion to dismiss should be denied unless it

appears that the plaintiff can prove no set of facts in support of her claim that

would entitle her to relief. In considering this appeal from the trial court’s grant of

the defendants’ motions to dismiss, we take all allegations of fact in the plaintiff’s

complaint as true, and review the lower courts’ legal conclusions de novo with no

presumption of correctness. Tenn. R. App. P. 13(d); Stein v. Davidson Hotel Co.,

945 S.W.2d 714, 716 (Tenn. 1997); Pursell v. First American Nat’l Bank, 937

S.W.2d 838, 840 Tenn. 1996); Cook v. Spinnaker’s of Rivergate, Inc., 878 S.W.2d

934, 938 (Tenn. 1994).




                                ABUSE OF PROCESS

     The plaintiff maintains that her complaint alleges both elements of the tort of

abuse of process -- an ulterior motive and an improper act in the use of process.

She points to the allegations of the complaint which charge that the

conservatorship petition was filed only to gain a collateral advantage in the Florida

litigation and the allegations which charge an attorney for Icard Merrill attempted

to use the conservatorship proceeding to dismiss or abate the Florida litigation.



     In response, the defendants argue that even assuming the complaint alleges

the first element of abuse of process, the existence of an ulterior motive, the

complaint does not allege the second element of the tort. According to the

defendants, neither initiation of the conservatorship proceeding nor reference to it

in the Florida litigation constitutes an improper act in the use of the process to

                                           -8-
perform a function or obtain a result which the process was not intended by law to

effect. We agree.



     In Tennessee there are two tort actions which may be brought to obtain

redress for the alleged misuse of legal process by another: malicious prosecution

and abuse of process. Donaldson v. Donaldson, 557 S.W.2d 60, 62 (Tenn.

1977); Priest v. Union Agency, 174 Tenn. 304, 125 S.W.2d 142, 143 (1939). To

make out a claim for malicious prosecution, a plaintiff must show that the

defendant maliciously brought a prior suit against him or her without probable

cause, and that the prior suit was terminated in favor of the plaintiff. Roberts v.

Federal Express Corp., 842 S.W.2d 246, 248 (Tenn. 1992). To establish a claim

for abuse of process in Tennessee, as in a majority of other jurisdictions, two

elements must be alleged: “(1) the existence of an ulterior motive; and (2) an act

in the use of process other than such as would be proper in the regular

prosecution of the charge.” Priest, 174 Tenn. at 307, 125 S.W.2d at 143 (internal

quotations and citations omitted); 1 Am. Jur. 2d Abuse of Process § 5 (1994).



     Abuse of process differs from malicious prosecution in that abuse of process

lies “for the improper use of process after it has been issued, not for maliciously

causing process to issue.” Priest, 174 Tenn. at 306, 125 S.W .2d at 143 (emphasis

added) (internal citations and quotations omitted); see also Restatement (Second)

of Torts § 682 (1977) (“The subsequent misuse of the process, though properly

obtained, constitutes the misconduct for which the liability is imposed. . . .); Fowler

V. Harper et al., The Law of Torts § 4.9 at 4:84 (3rd ed. 1995) (“The action is not for

the wrongful bringing of an action or prosecution, but for the improper use, or rather

                                          -9-
‘abuse,’ of process in connection therewith . . . .); W. Page Keeton et al., Prosser

and Keeton on the Law of Torts § 121 at 897 (5th ed. 1984) (“[T]he gist of the tort is

not commencing an action or causing process to issue without justification, but

misusing, or misapplying process justified in itself for an end other than that which it

was designed to accomplish [footnote omitted].”).

     As this Court emphasized in Priest,

     The test as to whether there is an abuse of process is whether the
     process has been used to accomplish some end which is without the
     regular purview of the process, or which compels the party against whom
     it is used to do some collateral thing which he could not legally and
     regularly be compelled to do.

174 Tenn. at 307, 125 S.W.2d at 144. Abuse of process does not occur unless the

“process is perverted, i.e., directed outside of its lawful course to the

accomplishment of some object other than that for which it is provided.” Id. The

mere existence of an ulterior motive in doing an act, proper in itself, is not sufficient.

Id. An action for abuse of process cannot be sustained where the process was

employed to perform no other function than that intended by law. Id. The bad

intent must culminate in an actual abuse of the process “by perverting it to a use to

obtain a result which the process was not intended by law to effect.” Id. at 308, 125

S.W.2d at 144. “The improper purpose usually takes the form of coercion to obtain

a collateral advantage, not properly involved in the proceeding itself, such as the

surrender of property or the payment of money, by the use of the process as a

threat or a club.” Keeton et al., supra § 121 at 898.



     Mere initiation of a law suit, though accompanied by a malicious ulterior

motive, is not abuse of process. See Priest, 174 Tenn. at 308, 125 S.W.2d at 144;

see also Oren Royal Oaks Venture v. Greenberg, Bernhard, Weiss & Karma, Inc.,

                                           -10-
728 P.2d 1202,1208 (Cal. 1986) (“[T]he mere filing or maintenance of a lawsuit --

even for an improper purpose -- is not a proper basis for an abuse of process

action.”); Joseph v. Markovitz, 551 P.2d 571, 575 (Ariz. App. 1976) (“[P]roof of

abuse of process requires some act beyond the initiation of a lawsuit.”); Hall v.

Hollywood Credit Clothing Co., 147 A.2d 866, 868 (D.C. Mun. App. 1959) (“The

mere issuance of the process is not actionable, no matter what ulterior motive may

have prompted it; the gist of the action lies in the improper use after issuance.”);

Yoder v. Adriatico, 459 So.2d 449, 450 (Fla. App. 1984) (“[T]he tort of abuse of

process is concerned with the improper use of process after it issues.”); Brown v.

Robertson, 92 N.E.2d 856, 858 (Ind. App. 1950); Brody v. Ruby, 267 N.W.2d 902,

905-06 (Iowa 1978); Friedman v. Dozorc, 312 N.W.2d 585, 594-95 (Mich. 1981);

Edmonds v. Delta Democrat Publ’g Co., 93 So.2d 171, 174 (Miss. 1957); Hauser v.

Bartow, 7 N.E.2d 268 (N.Y. 1937) (“There must be a further act done outside the

use of process -- a perversion of the process.”); Clermont Environmental

Reclamation Co. v. Hancock, 474 N.E.2d 357, 361 (Ohio App. 1984) (“[I]f one uses

process properly, but with a malicious motive, there is no abuse of process . . . .”);

Ann-Margaret v. High Soc’y Magazine, Inc., 498 F. Supp. 401, 407 (S.D. N.Y. 1980)

(“[A] summons and complaint are not process capable of being abused.”);

Manufacturers & Jobbers Fin. Corp. v. Lane, 19 S.E.2d 849, 853 (N.C. 1942) (“The

gist of an action for abuse of process is the improper use of the process after it has

been issued.”); Snyder v. Byrne, 770 S.W.2d 65, 67 (Tex. App. 1989); Mullins v.

Sanders, 54 S.E.2d 116, 121 (Va. 1949); Batten v. Abrams, 626 P.2d 984, 990

(Wash. App. 1981) (“[T]here must be an act after filing suit using legal process

empowered by that suit to accomplish an end not within the purview of the suit.”);

see generally Keeton et al., supra, § 121 at 898 ( “[T]here is no liability where the

                                          -11-
defendant has done nothing more than carry out the process to its authorized

conclusion, even though with bad intentions.”); Annotation, 80 A.L.R. 580 (1932).



     The requirement of a subsequent improper act in the use of process after the

initiation of a law suit is designed to accommodate the freedom of an individual to

seek redress in the courts and the interest of a potential defendant in being free

from unjustified litigation. See Oren Royal Oaks Venture, 728 P.2d at 1209. The

requirement also serves to prevent a chilling effect on claims well-founded in fact

and law and asserted for the legitimate purpose of redressing a grievance. Id.; see

also Devaney v. Thriftway Marketing Corp., 953 P.2d 277, 285 (N.M. 1997). In light

of the important functions served by this requirement, as evidenced by the number

of jurisdictions which apply it, we have no hesitation in reaffirming this Court’s

statement in Priest: abuse of process lies only “for the improper use of process

after it has been issued, not for maliciously causing process to issue.” 170 Tenn. at

306, 125 S.W.2d at 143 (internal citations and quotations omitted) (emphasis

added). In so holding, we reject the plaintiff’s suggestion that filing an action for an

improper “ulterior motive” is alone sufficient to give rise to a claim for abuse of

process. See also Oren Royal Oaks Venture, 728 S.W.2d at 1209.



      Considering the plaintiff’s complaint in light of these governing legal

principles, we conclude the trial court and Court of Appeals properly dismissed the

plaintiff’s complaint for failure to state a claim upon which relief can be granted.

The complaint does not allege the second element of abuse of process -- an

improper act in the use of process which occurred after the conservatorship petition

was filed. Mere filing of the petition is not sufficient. As the Court of Appeals

                                          -12-
recognized, under Tennessee law, any person with knowledge of an individual’s

need for a conservator may petition the court to appoint a conservator. Tenn. Code

Ann. § 34-13-102 (1996 Repl.).



     Moreover, despite the plaintiff’s assertions to the contrary, an improper act in

the use of process did not occur when William Bell and Icard Merrill advised the

Florida court of the pendency of the conservatorship proceeding in Tennessee and

invoked a Florida statute in support of a motion to dismiss or abate the Florida

litigation. These allegations do not charge an action that perverted the process to a

use to obtain a result which the process was not intended by law to effect. The

Florida statute provided for the suspension of powers of attorney during the

pendency proceedings to determine a principal’s capacity. See n.2, supra. The

litigation in Florida was instituted by Snyder, exercising power of attorney for

Frances Bell. The statute potentially could have resulted in a stay of the Florida

lawsuit until conclusion of the conservatorship proceeding. Since it was William

Bell who filed the conservatorship proceeding, it was appropriate for William Bell to

advise the Florida court that he had filed a petition in Tennessee seeking

appointment of a conservator for Frances Bell. Because litigation is often costly

and because the purpose of a conservatorship proceeding is to supervise, protect,

and assist “the person or property or both of a disabled person,”4 William Bell’s

request that the Florida litigation be stayed until resolution of the conservator

proceeding was appropriate. However, nowhere does the complaint allege that the

defendants used the conservatorship proceeding as a “threat” or a “club” to extort



       4
           Tenn. Code A nn. § 34-11-101(4) (1996 R epl.).

                                                  -13-
from the plaintiff an agreement to dismiss or settle the Florida litigation. Merely

advising a Florida court of the pendency of the proceeding in conjunction with the

statute does not constitute an improper act in the use of process. Accordingly, we

conclude that the plaintiff’s complaint fails to allege one of the essential elements of

abuse of process -- an improper act in the use of process; therefore the complaint

fails to state a claim upon which relief can be granted. For the same reason, the

complaint also fails to state a claim for conspiracy to abuse process. See Merritt-

Chapman & Scott Corp. v. Elgin Coal, Inc., 358 F.Supp. 17, 21 (E.D. Tenn. 1972).




                                    CONCLUSION

     Because we conclude that the plaintiff’s complaint fails to allege one of the

essential elements of abuse of process, we affirm the judgment of the Court of

Appeals which upheld the trial court’s dismissal of the plaintiff’s complaint for failure

to state a cause of action.




                                      __________________________________
                                      FRANK F. DROWOTA, III,
                                      JUSTICE




Concur:
Anderson, C.J.
Birch, Holder, Barker, JJ.




                                          -14-