Gudger v. Manton

134 P.2d 217, 21 Cal. 2d 537, 1943 Cal. LEXIS 281
CourtCalifornia Supreme Court
DecidedFebruary 9, 1943
DocketL. A. 17852
StatusPublished
Cited by84 cases

This text of 134 P.2d 217 (Gudger v. Manton) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gudger v. Manton, 134 P.2d 217, 21 Cal. 2d 537, 1943 Cal. LEXIS 281 (Cal. 1943).

Opinion

CARTER, J.

— Plaintiff and respondent, Francis Gudger, was awarded compensatory damages in the sum of $16,000 in an action for slander of title to real property against all of the defendants, except defendant, Harry G. Sadicoff, judgment being given in favor of him. Defendant Pugh alone prosecutes this appeal therefrom.

In 1932, defendant Mantón obtained a judgment for $40,166.45 in New York against plaintiff’s wife arising out of a premarital tort. Appellant Pugh, a New York attorney, not admitted to practice in California, was Mantón’s counsel in that action. Her compensation arrangement was a 40 per cent contingent fee contract. The judgment being unpaid, appellant, without Mantón’s knowledge, communicated with defendants, Hamilton and Hoornaert, California attorneys, with regard to the collection of the judgment and on December 6, 1934, requested them to institute proceedings immediately for the collection of the judgment; plaintiff and his wife were then residing in Los Angeles. Appellant agreed to pay defendants Hamilton and Hoornaert 20 per cent of her 40 per cent contingent fee. Following communications between ■ appellant and Hamilton and Hoornaert, and on January 7, 1935, the latter commenced an action in Mantón’s name in California on the New York judgment against plaintiff’s wife. After appellant had communicated with Hamilton and Hoornaert with reference to the return *541 of the papers with a bill for their services, the latter obtained the entry of a default judgment against plaintiff’s wife. Thereafter, in 1938, said defendants, Hamilton and Hoornaert, through defendant Sadicoff, an attorney at law, had levied and recorded a writ of execution upon all interest of plaintiff’s wife in certain described real property standing of record in plaintiff’s name. Plaintiff was not disturbed in his possession. Plaintiff’s wife had no interest in the property, it being plaintiff’s separate property. The instant action followed in January, 1938, in which plaintiff sought to quiet title to the real property and for damages for the levy and continuance of the execution on his property. He prevailed in both claims, the latter being here in dispute insofar as appellant is concerned. The execution was released by defendants in February, 1939, after the commencement of this action.

The judgment here under attack rests upon the theory of a slander by appellant of the title of plaintiff’s property, or more accurately the wrongful disparagement of plaintiff’s title thereto to his injury, At the outset it is helpful to have before us an accurate definition of that tort. It may be best stated as follows: ‘1 One who, without a privilege to do so, publishes matter which is untrue and disparaging to another’s property in land, chattels or intangible things under such circumstances as would lead a reasonable man .to foresee that the conduct of a third person as purchaser or lessee thereof might be determined thereby is liable for pecuniary loss resulting to the other from the impairment of vendibility thus caused.” (Eest. Torts, § 624.) The amplification and application of that rule to the facts in the instant case will hereafter appear.

With that rule in mind we turn to appellant’s contentions. She asserts that the levy of and recording of a writ of execution upon the real property of another, not a party to the judgment, does not constitute a lien nor cloud upon the title, and where the judgment debtor has no interest in the property, no right of the owner thereof is affected, and therefore it cannot be the basis for a disparagement of title action; that a levy of execution under such circumstances is not a cloud on the title such as is removable by an action for that purpose or grounds for injunctive relief; and that the levy was only upon the right, title and interest if any, which plaintiff’s wife had in the property, and did *542 not purport to cloud plaintiff’s title if his wife had no interest therein. The fallacy of that argument is plain. If a lien were in fact legally created by the levy then the levy would be justified; there would be no falsity and thus no disparagement of title within the definition. Of necessity, in order that the elements of that tort may exist, the lien must be false, that is without legal foundation. Under appellant’s reasoning a disparagement of title action never would lie for the recording of an instrument affecting another’s title. It has been held that the recording of a document making a false claim to real property may constitute the publication of the disparaging matter in the tort in question; naturally the document could not in fact or law-constitute a meritorious legal claim to the property. Coley v. Heeker, 206 Cal. 22 [272 P. 1045], involved the recording of an abstract of judgment after an undertaking staying execution pending an appeal had been filed; Fearon v. Fodera, 169 Cal. 370 [148 P. 200, Ann.Cas. 1916D, 313], concerned a deed by one having no interest in the property; Ezmirlian v. Otto, 139 Cal.App. 486 [34 P.2d 774], involved the recordation of an assignment of royalties when the one causing the recording had no interest in the property. The recording of the notice of the execution necessarily embraced the imputation that plaintiff’s wife had the whole or a part interest in plaintiff’s property, and that such interest was subject to the execution levy. Otherwise there would have been no reason for recording the writ and notice of execution. Such instruments on record had all the appearance of an assertion by defendants of a claim to an interest in the property, and as a matter of common knowledge would have an effect upon a prospective purchaser of the property and the merchantability of the title. He would naturally assume that plaintiff’s title was not merchantable, as it was encumbered by a lien to an indefinite extent. Defendants as reasonable persons should have reasonably foreseen that such would be the effect of their action. The essence of the matter is that there has been an actionable disparagement of title if the plaintiff has been proximately damaged thereby. The question of damages is hereafter discussed. Appellant refers to several eases from other jurisdictions apparently contrary to the views herein expressed, but we are not inclined to agree with the holdings therein. If the matter is reasonably understood to cast doubt upon the ex *543 istence or extent of another’s interest in land, it is disparaging to the latter’s title where it is so understood by the recipient. (Rest. Torts, § 629.) As we have seen, the reasonable imputation of the recording was a claim of an interest adverse to plaintiff’s title. Whether a cloud on the title in the technical sense existed was immaterial. While it is true the execution claimed only such interest as plaintiff’s wife had in the property, the only reasonable implication is that in fact the wife did have an interest in the property and a lien thereon was claimed.

It is asserted that there was no evidence or finding of malice on the part of appellant. In discussing that issue it is necessary to clarify the meaning to be given to particular terms. There has been considerable confusion and lack of rationalization flowing from the use of the term malice. It arises chiefly from the failure to clearly distinguish between malice implied in law and actual malice.

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Bluebook (online)
134 P.2d 217, 21 Cal. 2d 537, 1943 Cal. LEXIS 281, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gudger-v-manton-cal-1943.