Gene R. Smith Corp. v. Terry's Tractor, Inc.

Plaintiff Gene R. Smith Corporation (Smith) appeals the judgment dismissing all defendants after the court ruled Smith’s causes of action for abuse of process and malicious prosecution for the allegedly wrongful and malicious prosecution of an involuntary bankruptcy instituted by the defendants were preempted by federal law, depriving the trial court of subject matter jurisdiction. We affirm.

Factual and Procedural Background

Smith, a developer and builder, had commercial dealings with defendants, Terry’s Tractor, Inc., George Larabee doing business as L & L Construction and L & L Electric, and Walter L. Schwaar doing business as the Light Gallery. Allegedly Smith failed to pay Terry’s Tractor’s bill for labor and material resulting in Tractor’s petitioning under chapter 11 to place Smith in involuntary bankruptcy. L & L and the Light Gallery as creditors joined in that proceeding. Smith successfully moved to dismiss the petition and then filed this action for malicious prosecution and abuse of process, alleging the defendants willfully and maliciously filed and prosecuted the involuntary bankruptcy. The Light Gallery successfully moved for judgment on the pleadings.…