Hagberg v. California Federal Bank

In Hagberg v. California Federal Bank (2004) 32 Cal.4th 350, a female bank customer of Hispanic descent, who had been arrested while trying to cash a check, filed a complaint against the bank, alleging that on the basis of her race or ethnicity the bank had called the police and falsely reported that she was attempting to negotiate a counterfeit check. The complaint alleged causes of action for, among other things, racial discrimination, false arrest and false imprisonment, slander, invasion of privacy, intentional infliction of emotional distress, and negligence. The trial court granted the bank's motion for summary judgment on the ground that the absolute privilege established by section 47, subdivision (b) of the Civil Code (section 47(b)) applied to the bank's statement to the police concerning suspected criminal activity. The Court of Appeal affirmed the ruling, agreeing that the privilege applied to the bank's communication with the police. The Supreme Court affirmed the judgment of the Court of Appeal. In short, the plaintiff attempted to cash a check. Erroneously believing the check was counterfeit, bank employees reported the matter to the police, who detained the plaintiff for 20 minutes. The plaintiff sued the bank and others alleging slander, amount other causes of action. (Hagberg, supra, 32 Cal.4th at p. 356-357.) The bank moved for summary judgment and it was granted. On appeal, the appellate court concluded that the statements made by the bank employees to the police were absolutely privileged pursuant to Civil Code section 47, subdivision (b).