If you'd like to sue someone for slander of title in California, you must prove they made a false, malicious statement about your property. You must also demonstrate that the defendant published this statement (written or spoken) and their actions led to you suffering special damages.
Knowing how to sue for slander of title is crucial because even though it's not common, it can cause enormous damage. A good enough reason is the state's high property values. As California's Legislative Analyst's Office points out, homes in the state are about twice as expensive as typical U.S. homes.
Being a victim of slander of title could mean significant losses for you, as it can lower your property's value. Prospective buyers could even back out and cancel the deal, leading to the sale falling through.
What Is Slander of Title in California?
Filing a suit against someone who slandered your property starts with knowing the basics surrounding the question, "What is slander of title?"
In California, slander of title is a civil lawsuit against defendants who've made false, damaging statements about properties. The plaintiff (the property owner filing the lawsuit) must show the court that the defendant:
- Published the false statement
- Made the statement without privilege, and instead, made it with malice and a reckless disregard for the truth
- Caused direct financial losses to the plaintiff as a result of their false, malicious statement
What Is an Example of Slander of Title?
Document forgery is an example of slander of title. The defendant could have recorded a fake trust deed, mortgage, or mechanics' lien on the property. They could have done so in an attempt to scare off lenders or buyers.
Another example is filing a groundless claim or notice of lawsuit (lis pendens) on the property. The defendant could have committed this to prevent the legitimate owner from being able to sell.
"Publishing" false statements to instigate real estate disputes or hurt a property's sale can also constitute slander of title.
A disgruntled business partner or angry ex-spouse could, for instance, be guilty of defamation of title by making claims online or verbally that a building has extensive mold or termite damage. They could also spread rumors about the property being a "criminal den," even though it's not.
How Do You Sue for Slander of Title in California?
Under California property law, taking legal action for slander of title requires the case to "possess" several elements. You must also file the suit in the correct judicial court, ideally with the assistance of an experienced attorney.
Proving the Publication of the False Claim
Protecting property rights and values by filing a slander of title lawsuit requires you to prove that the defendant published a false, defamatory statement about your property. There must be a third party involved.
The defendant could, for instance, have "published" the false claim online, spread rumors about the property verbally, or made public records by creating false liens.
Demonstrating the Falsity of the Statement
You, the plaintiff, must prove that the defendant's statement is false. You must demonstrate that their claim has disparaged the property title's quality or validity.
Showing the Defendant Acted With Malice
Your lawsuit's success hinges on the defendant's knowledge of the maliciousness of their statement. You must show the court that the entity that slandered your property acted with reckless disregard for the truth.
The defendant must have also made their defamatory claim outside a legal privilege. An example is if they "published" their false testimony outside of court.
Illustrating the Losses You've Suffered
Finally, you must prove that the defamatory statement caused you special damages or pecuniary losses. You must have evidence of the false claim resulting in direct financial harm, such as a lost sale or a cancelled lease.
Suppose you're selling your California home, but your disgruntled ex-partner decided to spread false rumors about it having extensive or whole-home mold damage.
Unfortunately, mold removal and remediation can be costly. According to This Old House, extensive whole-house remediation services can cost anywhere from $10,000 to $30,000.
As a result of your ex-partner's actions, prospective buyers of your home have either told you to reduce your asking price or pulled their offer out. The lowballing has then resulted in you not being able to sell your home and profit from the sale.
Filing the Lawsuit
If all the above elements are present in your case or if you're unsure, consult an experienced real estate attorney to verify whether your suit is meritable or not.
You can expect your lawyer to handle most of the legwork for you, including gathering all necessary evidence and paperwork. They'll also file the lawsuit at the correct court, which could either be the Superior Court of the county where your property is or where the defendant resides or does business.
Frequently Asked Questions
What Damages Can You Recover From a Slander of Title Case?
If you win your slander of title case, you can recover several types of damages, including "actual damages." The court may award you a monetary amount equivalent to your lost sale profits, reduced sale price, or cancelled leases.
You can also recover the amount of money you've spent to clear your title of any fake liens or claims made against it.
In some, albeit rare cases, the court may also impose and require the defendant to pay punitive damages. Courts typically do this for cases involving severe or exceptional maliciousness.
Legal fees you've spent are also often recoverable. They include attorney's fees, court and filing fees, and other administrative expenses related to the lawsuit.
Is There a "Deadline" for Filing a Slander of Title Lawsuit?
Yes. Legal terminology refers to these "deadlines" for filing lawsuits as "statute of limitations."
In California, the statute of limitations for slander of title is three years, per the California Code of Civil Procedure Section 338.
Protect Your Property and Ownership Rights
Suing for slander of title in California requires ensuring your case possesses all the essential elements (from publication to falsity and damages). You should also consider working with an experienced real estate attorney, as their skills, knowledge, and expertise can help make the process more straightforward.
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