Opinion ID: 2314363
Heading Depth: 1
Heading Rank: 8

Heading: Special Damages in the Slander of Title Action

Text: Webber next contends that the trial court erred in its determination of the special damages arising from the slander of title claim. With respect to the slander of title count the Superior Court stated: The Court also finds that defendant Helen Webber slandered the plaintiffs' title by publishing the March 23, 1989 deed in the Lincoln County Registry of Deeds in Book 1538, Page 266, (as subsequently modified). In addition to the declaratory relief granted below the court finds that plaintiffs incurred special damages in the amount of $15,021.01 directly caused by the defendant's action. The court arrived at this amount by summing the amounts the Colquhouns claimed in their affidavits were directly associated with the slander of title claim. In claiming and awarding this amount, however, the Colquhouns and the court misconstrue what constitutes special damages for the tort of slander of title. [T]he costs of litigation and attorneys' fees in the action for [slander of title cannot] constitute the required special damages. 50 Am.Jur.2d Libel and Slander § 557 (1995). As discussed earlier, the prevailing party in a slander of title action may recover as special damages those attorney fees and expenses accruing from removing the cloud on the title. See PROSSER AND KEETON ON THE LAW OF TORTS § 128 (5th ed 1984), RESTATEMENT (SECOND) OF TORTS § 633(1)(b) (1977); James O. Pearson, Jr., Annotation, What Constitutes Special Damages in Action for Slander of Title, 4 A.L.R.4th 552, 562 (1981 & Supp.1995). Cf. Prentiss v. Shaw, 56 Me. 427, 433 (1869) (stating that in a false imprisonment action, claimant was entitled to recover pecuniary indemnity including expense of cure). In contrast, the court in this case based its award of special damages on the legal cost of prosecuting the slander of title action. The award of costs associated with prosecuting the slander of title count not only does not represent expenses reasonably necessary to counteract the publication of the disparagement, but also their award violates the American Rule, which provides that absent a statutory provision or contractual agreement litigants bear their own attorney fees and litigation costs. It is the costs of prosecution of the counts which cleared the Colquhouns' title, i.e. the quiet title counts and the declaratory judgment count which are appropriately characterized as special damages and for which Webber should bear liability. Because the court computed its award of damages for the slander of title action based on the costs of prosecuting the slander of title count and not based on the expense of measures reasonably necessary to counteract the publication of the slander, we vacate the damage award on Count II and remand for a proper determination of the Colquhouns' damages arising from Webber's disparagement of their title. The entry is: Judgment affirmed except as to Count II. Judgment on Count II vacated. Remanded for further proceedings consistent with the opinion herein. All concurring.