Sussex Real Estate Corp. v. Sbrocca

634 P.2d 999, 1981 Colo. App. LEXIS 839
CourtColorado Court of Appeals
DecidedApril 30, 1981
Docket79CA0287
StatusPublished
Cited by5 cases

This text of 634 P.2d 999 (Sussex Real Estate Corp. v. Sbrocca) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sussex Real Estate Corp. v. Sbrocca, 634 P.2d 999, 1981 Colo. App. LEXIS 839 (Colo. Ct. App. 1981).

Opinion

KELLY, Judge.

Sussex Real Estate Corporation brought this action against defendants, Nicola Sbrocca, Landon N. Mallery, and Great Eastern Development Corporation for breach of a real estate commission contract and misrepresentation. The defendants counterclaimed, joining George B. Dolan, Jr. and Judith Whitaker as third-party defendants, for negligence and slander of title. After a trial to a jury, a verdict was returned against Sussex on all of its claims, and in favor of the defendants and against Sussex and Dolan on the counterclaims. Sussex and Dolan argue that there was insufficient evidence to support the verdict and that the amount of damages was improper. We affirm.

In June 1976, the owner of an apartment building entered into an open listing agreement with Sussex, giving Sussex the right to list the building for sale. This agreement expired in December 1976. In February 1977, Mallery, a salesman with Sussex *1001 and a 25% shareholder in Great Eastern, went to Whitaker, the listing agent at Sussex stating that he knew of a buyer for the apartment building. That buyer was Great Eastern.

Mallery, unaware of how properly to disclose his position in Great Eastern, sought and obtained the assistance of Sussex personnel in preparing the contract. At the suggestion of the sales manager of Sussex, the statement “Landon N. Mallery is a licensed real estate salesman in the State of Colorado” was included in the contract to provide disclosure. The Sussex policy manual also suggested that such wording would be sufficient disclosure. Moreover, Dolan, the real estate broker of Sussex, had informed Mallery that it was not necessary for him to disclose any position he might have in a corporate buyer.

The seller and Great Eastern entered into a contract for the purchase of the building. Later, when the seller learned of Mallery’s position in Great Eastern, it informed Sussex that it considered the contract void because of the inadequate disclosure of Mal-lery’s role, and demanded a full release of the contract and any claim to a commission by Sussex. Sussex and Great Eastern signed a release. The failure properly to instruct Mallery on disclosure is the basis for Great Eastern’s negligence counterclaim against Sussex.

In the summer of 1977, after further negotiations with the seller, Great Eastern purchased the building at a higher price. It then began selling the apartments as condominium units.

Sussex filed this action against Great Eastern, Mallery, and Sbrocca, another shareholder in Great Eastern, alleging that they breached an oral contract in which they agreed to make Sussex the listing broker for the ultimate sale of the condominium units. Sussex also filed a notice of lis pendens on the condominium units. The lis pendens is the basis for the slander of title counterclaim.

I.

Appellants contend that the negligence instruction submitted to the jury was incorrect, and that there was insufficient evidence to support the finding of negligence. Appellants did not raise objections to the negligence instructions at the trial level. Thus, their argument has not been preserved for appeal and will not be considered. Caldwell v. Kats, 193 Colo. 384, 567 P.2d 371 (1977).

II.

The question whether the conduct of Sussex and Dolan was negligent is a question for the jury “when the evidence is such that different conclusions might be drawn by fair minded men as to whether negligence is shown.” Safeway Stores v. Langdon, 187 Colo. 425, 430, 532 P.2d 337, 340 (1975). A directed verdict should be granted “only when the evidence has such quality and weight as to point strongly and overwhelmingly to the fact that reasonable men could not arrive at a contrary verdict.” Id. The record discloses that Great Eastern and Mallery went to Sussex and Dolan for advice on how to handle Mallery’s position with Great Eastern. The result of this advice was an inadequate disclosure which caused monetary damages to Great Eastern in requiring it to pay more for the building.

III.

Appellants also argue that the jury improperly found them liable for slander of title in that there was no proof of malice nor of damage. We disagree.

Malice, an element of a slander of title claim, is an attempt to “vex, injure or annoy” the other party. McNichols v. Conejos-K Corp., 29 Colo.App. 205, 482 P.2d 432 (1971). Malice is an issue for the jury. Ling v. Whittemore, 140 Colo. 247, 343 P.2d 1048 (1959). The dispute between Sussex and Great Eastern did not involve title to real property as is required for a notice of a lis pendens. C.R.C.P. 105(f). The evidence that a lis pendens was improperly filed and that it was filed when Great Eastern was in the process of selling the individual units was sufficient for the jury to find malice. *1002 Cf. Colorado Real Estate v. Sternberg, supra.

IY.

Counterclaimants also proved damages. In order to prevail in a slander of title case, a party must show that the damaging words were:

“ ‘uttered pending some treaty or public action for the sale of the property, and that thereby some impending purchaser was prevented from bidding or competing .... If the plaintiff has merely a general intention to sell . . . plaintiff does not suffer any damage from their utterance.’ ” McNichols v. Conejos-K Corp., supra, 29 Colo.App. at 210, 482 P.2d at 435, quoting Zimmerman v. Hinderlider, 105 Colo. 340, 97 P.2d 443 (1939).

Here, the counterclaimants clearly had more than a general intention to sell the units. The units were under contract of sale. These contracts were being closed and title conveyed to purchasers prior to and during the days immediately following the wrongful filing of the notice of lis pen-dens.

V.

The damages awarded by the jury to counterclaimants for slander of title were the expenses incurred, including attorneys’ fees, to have the notice of lis pendens lifted. Sussex and Dolan argue that attorneys’ fees, in the absence of an agreement or statute, are not a recoverable damage.

Attorneys’ fees have been recognized in Colorado as a proper item of damage in certain cases. They have been allowed in actions similar to slander of title actions. Bernstein v. Simon, 77 Colo. 193, 235 P. 375 (1925) (malicious prosecution action); Peterson v. Spears, 72 Colo. 40, 209 P. 509 (1922) (action to quash a writ of attachment); Tabor v. Clark, 15 Colo. 434, 25 P. 181 (1890) (action to quash an improperly issued injunction).

The Restatement (Second) of Torts § 633(lXb) states:

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634 P.2d 999, 1981 Colo. App. LEXIS 839, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sussex-real-estate-corp-v-sbrocca-coloctapp-1981.