Don't Be Stupid or Mean: Be Aware of-Slander of Title in Kansas

Abstract

This article is about the tort of slander of title in Kansas. A possible cause of action can arise in a variety of contexts and can cause problems for owners of property interests and their lawyers. The descriptors we use in our title, "stupid" and "mean:' are two of the three ways the West Virginia Supreme Court described some defendants assessed with punitive damages. The court upheld substantial punitive damages awarded by the trial court in that slander of title case. We describe the case in Section III.A. below. Real estate professionals file documents in the register of deeds office to give notice of ownership interests and of claims against the title. Persons and entities interested in ascertaining the status of title to particular land consult these records to draw conclusions and make business decisions.

Most documents filed in the public records are valid and likely contain correct information. Most land titles, however, are not entirely clean and totally without blemish. Legitimate interests such as mortgages, liens, easements, court records, leases, and other interests may show that a particular title is encumbered. A prospective purchaser might require some or all of these legitimate encumbrances to be removed before the purchaser will close a sale. But occasionally a cloud appears that is false and illegitimate. Consider the following four fact situations:

1. A law student disgruntled with his grade in a class files a document in the register of deeds office falsely claiming an interest in the farm owned by the law professor of that class.

2. An unfriendly homeowner next to neighbors whose house is on the market puts up a sign in her own yard claiming falsely that any purchaser of his neighbors' house and lot would be buying a lawsuit because the neighbors' land title is clouded.

3. An employee of a bank that holds a mortgage on a piece of property falsely claims orally during a meeting with the owner and prospective buyer that the bank owns the property outright.

4. A member of a sovereign citizens group files a "commercial lien" against a home owned by a local judge.

The first situation is hypothetical, the second happened in Malibu, California, and the third happened in Kansas. The fourth is an example of tactics used by various splinter groups to gum up title to land owned by public officials and others. All four situations suggest the possibility of a lawsuit for slander of title. Section II provides background about this tort. In Section III we describe a few Kansas cases that illustrate both successful and unsuccessful results. We briefly note in Section IV some related Kansas statutes. In Section V, we examine the first hypothetical situation posed above as well as another situation. Section VI is a brief conclusion.