A U.S. District Court for the District of Arizona dismissed a claim for abuse of process in Grabinski v. National Union Fire Ins. Co. of Pittsburgh, Pa., No. V041751PHXMHM, 2005 WL 2412784 (D. Ariz. Sept. 23, 2005).

 Thomas Grabinski was insured by a National Union directors and officers policy, as an officer of the Baptist Foundation of Arizona. With criminal charges pending against him, he sought an advance of defense costs from National Union.

 When National Union did not pay, Grabinski successfully sued the insurer for bad faith and breach of contract. A jury awarded him a $2.5 million judgment. National Union appealed and requested a stay of judgment and posted a supersedeas bond (a bond required of one who petitions to set aside a judgment or execution and from which the other party may be made whole if the action is unsuccessful—Black's Law Dictionary, sixth edition).

 Grabinski sought to disallow the stay and the posting of the bond, but the action was rejected by the Arizona Court of Appeals. That court affirmed the verdict and judgment rendered in the lower court, and National Union has paid the amount in full.

 Based on National Union's alleged conduct during the litigation process, Grabinski filed claim for abuse of process, stating that National Union "filed specious post-trial motions, filed a specious appeal, posted a supersedeas bond to cause increased delay and conducted an improper deposition and questioning at trial seeking to implicate Mr. Grabinski's guilt in the criminal charges." The actions, Grabinski argued, were pursued "with an ulterior motive, that is, for their own greed, and to cause Mr. Grabinski to submit to a settlement."

 The court listed the two elements of an abuse of process claim required under Arizona law:"(1) a willful act in the use of judicial process (2) for an ulterior purpose not proper in the regular conduct of the proceeding." Mere speculation about the defendant's purposes is not sufficient to meet the requirements. The court also quoted a previous case, stating, "Where a lawful end is pursued by appropriate process, incidental motives of spite or greed are not actionable."

 While Grabinski argued that National Union appealed to force a settlement and knew that its actions would increase legal costs, the court found that neither was grounds for an abuse of process claim.

 The court further ruled that National Union was likewise not liable for continuing bad faith, as Grabinski also alleged.

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