Slander of title is a false and malicious statement made in disparagement of a person’s title to property that causes the property owner special damages (losses). It is a tort action with stringent pleading and proof requirements.
In a slander of title action the plaintiff must prove that the defendant made a false and malicious statement, disparaging property in which the plaintiff holds an interest, and causing special damages.
In states that recognize a slander of title claim or cause of action, some courts have held that a plaintiff who sues for slander of title must plead and prove the loss of a specific sale—and that a plaintiff who does not meet these pleading requirements may not recover damages.
In California, slander of title is recognized as a cause of action under tort law. To establish a case for slander of title, a plaintiff must demonstrate that the defendant made a false and malicious statement that disparaged the plaintiff's title to property, and that this statement caused the plaintiff to suffer special damages, such as the loss of a specific sale. The requirement to show special damages is critical, as mere diminution in value of the property without a specific financial loss is typically insufficient. The malice element requires showing that the defendant acted with spite, ill will, or a reckless disregard for the truth. California courts require strict adherence to these elements, and failure to adequately plead or prove any of them can result in the dismissal of the claim. It is important for plaintiffs to provide concrete evidence of the alleged false statement, its malicious nature, the direct link to the disparagement of property title, and the specific financial losses incurred as a result.