Other states have likewise recognized this action at common law. Disparagement of Property - Slander of Title. Now the question is whether the filing of a false materialman's lien is privileged. The trial court granted the motion. Haan argues the privilege in this statute applies only to slander of a person, not property.
Some jurisdictions deduce the filing of mechanic's lien is part of a judicial proceeding.
Still, a lawsuit will not necessarily follow from filing a lien and often does not. The law, however, indulges another privilege in these circumstances. The privilege is subsumed in the requirement that the person suing for disparagement of title must show malice or that the lien filer had an illegitimate purpose. Under this privilege, even if a lien filing was erroneous, it will not support a disparagement of title action if the person who filed acted in the reasonable belief that the filing was valid. We therefore reverse and remand for further proceedings consistent with this opinion.