The bill establishes a new legal framework for malicious prosecution claims arising from civil actions between private parties in Iowa. It defines "malice" as initiating a civil action for reasons other than securing a proper adjudication of the claim, and "probable cause" as the existence of facts and law that would lead a reasonable person to believe the action was justified at the time it was initiated. Under this bill, individuals can bring a civil action for malicious prosecution against a private party who initiated a civil action against them.

To succeed in such a claim, the plaintiff must demonstrate that the underlying civil action was decided or dismissed in their favor, that the defendant lacked probable cause, that the defendant acted with malice, and that the plaintiff suffered actual damages as a result. Importantly, the bill clarifies that plaintiffs are not required to prove any heightened injuries beyond the typical burdens of defending a civil action. Additionally, the provisions of this bill are limited to private parties and do not affect existing doctrines related to governmental or public wrongs.