8 Cal. App. 5th 1248
Cal. Ct. App.2017Background
- Finch Aerospace occupied three hangars at Brown Field Airport under a sublease chain: City (master lease) → Brown Field Aviation Ventures → Bearden → Lancair → Finch.
- The City’s master lease (Section 6.9(a)) stated tenant-installed improvements become City property at lease termination unless otherwise provided.
- An airport development coordinator wrote a letter in 2010 stating improvements on a particular lessee’s leasehold are the lessee’s property until lease expiration, when they become City property.
- Finch sought to negotiate directly with the City to remove its hangars; Lancair claimed ownership, relying on the coordinator’s letter; Finch litigated against Lancair and prevailed on quiet title and declaratory relief, establishing the hangars were removable trade fixtures belonging to Finch.
- Finch then sued the City for slander of title (seeking to recover attorney fees and other litigation costs), the City demurred asserting statutory immunities (Gov. Code §§ 818.8, 822.2) and failure to plead slander of title; the trial court sustained the demurrer without leave to amend and Finch appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Gov. Code §§ 818.8 and 822.2 immunities apply to a slander of title claim | Finch: Immunities do not cover slander of title because it is a disparagement tort, not deceit/misrepresentation | City: Immunities bar liability for misrepresentations by public entities/employees | Held: Immunities do not apply to slander of title (disparagement is distinct from deceit) |
| Whether Finch adequately pleaded slander of title | Finch: Coordinator’s written statement about leasehold improvements implicated Finch’s property and derogated it | City: Statement did not specifically refer to Finch or clearly derogate Finch’s property; complaint fails to plead required elements | Held: Complaint failed to allege a misleading statement that specifically referred to and clearly derogated Finch’s property; demurrer properly sustained without leave to amend |
Key Cases Cited
- Johnson v. State of California, 69 Cal.2d 782 (discusses scope of "misrepresentation" as tort of deceit)
- City of Costa Mesa v. D'Alessio Investments, LLC, 214 Cal.App.4th 358 (treats statutory immunities as applying to deceit-based misrepresentation causes of action)
- Curcini v. County of Alameda, 164 Cal.App.4th 629 (analyzes public entity/employee immunities for misrepresentation)
- Hartford Casualty Ins. Co. v. Swift Distribution, Inc., 59 Cal.4th 277 (establishes disparagement/slander-of-title requires statement that specifically refers to and clearly derogates plaintiff's product or business)