N.C. Farm Bureau Mut. Ins. Co. v. Cully’s Motorcross Park, Inc.

After a house on property belonging to a motorcross park caught fire, an investigator for property's insurer (Farm Bureau) found evidence of arson. The investigator's findings also included allegations that the park's president and sole shareholder (Volpe) had failed to report to Farm Bureau that there was a deed of trust on the property when she insured it and when she filed a claim of loss after the fire. Volpe was subsequently charged with obtaining property by false pretenses based upon her sale of the burned property to a purchaser who did not know it was encumbered. The trial court found Volpe was not involved in the fire, that Farm Bureau caused a criminal proceeding to be instituted against Volpe, and that Farm Bureau was liable to Volpe for malicious prosecution. The court of appeals affirmed. The Supreme Court reversed in part, vacated in part, and remanded, holding that the insurance investigator's report to a law enforcement officer did not constitute the initiation of a malicious prosecution, and Farm Bureau's actions did not constitute an unfair and deceptive practice. View "N.C. Farm Bureau Mut. Ins. Co. v. Cully's Motorcross Park, Inc." on Justia Law