In Oszustowicz v. Admiral Insurance Brokerage Corp. , Admiral learned that its employee, Stephen Oszustowicz, had issued certificates of insurance to various companies even though Admiral's records didn't reflect the policies had been purchased.
Since these certificates bore false policy numbers and were signed by Oszustowicz, Admiral terminated his employment and contacted law enforcement officials. And even though Oszustowicz was arrested and charged with possession of a forged instrument, the criminal case was never tried.
Oszustowicz later sued Admiral for "false arrest and imprisonment" and, when the Kings County Supreme Court granted Admiral's motion to dismiss the case, an appeal ensued.
The Appellate Division, Second Department, found that the facts of the case didn't jibe with any cognizable legal theory. For "false arrest" or "false imprisonment" to be triggered, Admiral needed to play an active role in the arrest, by advising or encouraging the authorities to act, or by demonstrating "officious and undue zeal, to the point where the officer is not acting of his own volition." Since the company merely contacted the police, and the case never went to trial, the AD2 concluded that the lawsuit had been properly dismissed.
Now that's some policy!
To download a copy of the Appellate Division's decision, please use this link: Oszustowicz v. Admiral Insurance Brokerage Corp.