American Financial, Inc. v. American State Insurance

MEMORANDUM ***

American Financial, Inc. f/k/a First National Insurance, Inc. (“FNI”) appeals from the district court’s grant of summary judgment to American States Insurance Company (“ASI”). Because the relevant facts are known to the parties they are not repeated here.

FNI first argues that the district court erred in rejecting its claim for malicious prosecution. At issue here is whether ASI was responsible for litigating, prosecuting, or continuing the underlying negligence suit brought by the Board of Trustees for School District No. 69 in West Yellowstone, Montana (“the school district”) against FNI. See Sacco v. High Country Indep. Press, Inc., 271 Mont. 209 , 896 P.2d 411, 431 (1995).

It is true that ASI’s counsel provided information and encouragement to the school district to bring suit against FNI. But irrespective of any prodding by ASI’s legal counsel, the school district made the decision to sue FNI on its own. Indeed, the school district’s attorney, Michael Lilly, submitted an affidavit stating:

In addition, under Montana law, the mere act of furnishing information to a relevant authority is not actionable as malicious prosecution. See Vehrs v. Piquette, 210…