After a fire damaged a house in Wilson, N.C., that was owned by Cully's Motorcross Park Inc., its president and sole stockholder, Laurie Volpe, submitted a claim to North Carolina Farm Bureau Mutual Insurance Company, the insurer for Cully's. Farm Bureau began an investigation and ultimately denied the claim, citing its suspicion that the fire had been intentionally set, among other factors. The insurance company's investigator subsequently met with a local police sergeant, who concluded that Volpe had committed a crime. She was arrested, but the district attorney dismissed the charge. Volpe then asserted a malicious prosecution claim against Farm Bureau.
A trial court found Farm Bureau liable for malicious prosecution, the Court of Appeals affirmed, and the case reached the North Carolina Supreme Court.
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