Senior Corp. v. Terracor (In re Terracor)
UNPUBLISHED
In a removed action in which plaintiff claimed that certain officers and directors of debtor had misused funds loaned by plaintiff to debtor, defendants counterclaimed that plaintiff's action against them constituted the tort of wrongful use of civil proceedings, and that defendants were entitled to attorney's fees under Utah Code Ann. § 78-27-56, because plaintiff's action was without merit and had not been asserted in good faith. Concluding that a prerequisite to a wrongful use of civil proceedings claim is termination of plaintiff's action in favor of defendants, the court dismissed defendants' claim, noting that it did not matter to the dismissal whether the claim was based entirely on tort law, or on tort law together with § 78-27-56. The court also considered whether defendants' allegations stated a claim for abuse of process, concluding that they did not since such claims require not just use of process with an ulterior motive, but also misuse of the process, as opposed to use of process in the ordinary course. To the extent defendants' counterclaim asserted an abuse of process claim, that claim was dismissed as well.