Arcaro

Defendant, doing business as the Hammer Collection Agency, appeals from a judgment for the plaintiff in an action for malicious prosecution. The only issue is whether Hammer had probable cause to institute or maintain the underlying collection action in the face of evidence the plaintiff’s signature on a credit application and guarantee was forged. We hold Hammer acted without probable cause in bringing and maintaining the underlying action because it had no objective, reasonable basis in the facts known to it for a belief Arcaro’s purported signature was genuine.

Facts and Proceedings Below

The Mark Thomas Construction Company applied for credit with Abco Hardware. The credit application listed Roger Arcaro as the “principal/ owner” and “president” of Mark Thomas Construction and the guarantee of payment on the account was signed “Roger Arcaro.” Personal information contained on the credit application such as address, telephone number and Social Security number was that of the plaintiff in this action, Roger C. Arcaro, who is a certified public accountant.

In November 1990, Arcaro received a telephone call from Roxanne Hanna in Abco’s accounts receivable department…