Question

Given below is a statement of legal principle followed by a factual situation. Apply the principle to the facts given below and select the most appropriate answer.

Legal Principles: In a suit for malicious prosecution, the plaintiff must prove the following essentials:

1. That he was prosecuted by the defendant.
2. That the proceeding complained was terminated in favour of the present plaintiff.
3. That the prosecution was instituted against him without any just or reasonable cause.
4. That the prosecution was instituted with a malicious intention, that is, not with the mere intention of getting the law into effect, but with an intention, which was wrongful in fact.
5. That he suffered damage to his reputation or to the safety of person, or to the security of his property.

Factual situation: A recovered a large sum of money from Railway Co. for personal injuries. Subsequently, Railway Co. came to know that injuries were not real and were created by doctor B. Railway Co, prosecuted B for playing fraud on the company, but B was acquitted. B sued Railway Co. for malicious prosecution. In the light of these facts which of the following statements is true? DECISION:

Options

• Railway Co. is guilty of malicious prosecution because it acted without reasonable cause

• Railway Co. is not guilty of malicious prosecution because the Co. took reasonable care in determining the facts and honestly believed them to be true

• Railway Co. is liable because it acted negligently

• None of the above

Answer 1

Railway Co. is not guilty of malicious prosecution because the Co. took reasonable care in determining the facts and honestly believed them to be true

Explanation:

"Railway Co. is not guilty of malicious prosecution because the Co. took reasonable care in determining the facts and honestly believed them to be true" is the correct answer as railway and company are not liable for malicious prosecution because they took reasonable care in determining the facts and honestly believed them to be true.