Claims for Slander of Title are rare and, until recently, not something that would be a common cause of action.
However, the recent case of Cowdrey v Gibson reflects a notable change in property litigation practice and whereby cases concerning Slander of Title are becoming more prevalent.
Whether the increase in disputes of this nature are as a reflection of societal changes, it is hard to say, but the recent increase in neighbour disputes grounded in this area of law is notable.
The use of the word ‘slander’ in this particular area of law is somewhat of a misnomer to the extent that Slander of Title does not share many of the attributes which are required in a personal slander matter.
For example, Slander of Title requires ‘publication’ which can take the form of the written word, spoken word or even implied conduct.
To contrast, ‘slander’ is traditionally understood as requiring a defamatory statement made by spoken word or gestures – i.e. not in a permanent format.
There are other deviations from a traditional slander claim and so, to distinguish, a lot of people will, instead, refer to Slander of Title as a malicious falsehood which protects property and business interests.
What is Slander of Title?
Slander of Title involves the publication, oral or written, of a false and malicious statement which challenges a vendor’s title to property and which causes said vendor financial loss.
Unlike personal defamation, which targets an individual’s reputation, slander of title specifically targets the validity or extent of one’s proprietary interests.
Some examples of situations which could give rise to an action in Slander of Title:
- Making untrue statements to potential buyers or lessees that cast doubt on the vendor’s or lessor’s ability to convey clear title.
- Falsely claiming an easement or other proprietary interest over land belonging to another.
- Suggesting that the property is subject to encumbrances that do not actually exist.
- The wrongfully registration of an invalid lien or charge against a property.
Key Elements required to establish Slander of Title
To establish a claim for Slander of Title in England, a Claimant must prove that;
- a statement has been published, verbal or written, which is false, and which concerns the claimant’s property.
- the statement is derogatory to the claimant’s title to land, property or chattels. In essence the statement must cast doubt upon the existence or extent of the claimant’s ownership and proprietary rights. Examples can include falsely claiming ownership, asserting an invalid lien or easement, or suggesting that the property is subject to encumbrances that do not exist.
- the statement has been published or communicated to at least one other person other than the Claimant. Again, this can be through writing or verbally.
- the statement must have been made maliciously. For a statement to be malicious it means that the defendant either knew the statement was false or acted with indifference as to its veracity and truth. It is also possible to establish malice by proving that the statement was made for an improper motive.
- that there has been actual financial loss suffered as a direct and immediate result of the false and malicious statement. The loss must be a direct consequence of third parties acting, or refraining from acting, in reliance on the disparaging statement. For instance, a lost sale or a reduction in the sale price can constitute special damage.
Defence to a Slander of Title case
It is apparent, from the above, that the determination is very fact sensitive and which may be why it is not a historically common cause of action.
It is possible to defend a Slander of Title case.
A Defence could focus on:
- Proving that the statement made is true.
- If it can be demonstrated that the statement was made in good faith, with a genuine belief in its truth, or without an intention to injure then the element of malice will not be satisfied.
- If the statement relied on is protected by an absolute or qualified privilege.
If a claim for slander of title is successful, remedies may include:
- Compensatory Damages to cover the losses directly resulting from the disparaging statement (such as lost profits from a sale, reduction in property value, or costs incurred to remedy the damage to title).
- An injunction to prevent the defendant from continuing to publish the false statements or to compel the removal of an invalid publication.
Our specialist team can support you with your legal rights and responsibilities so that you do not get caught out. Contact Catherine Gregson today for help.