723 S.E.2d 597
S.C. Ct. App.2012Background
- Solley and Mullins purchased a house in Jasper County; Solley owned the property with Mullins via joint tenancy or tenancy in common.
- In 2006 Mullins obtained a Bank mortgage without Solley's knowledge, recorded against the property.
- Solley learned of the mortgage in 2007 and sued the Bank for conversion, slander of title, and negligence.
- The Bank failed to answer, defaulted, and a damages hearing before a special referee was held.
- The referee found the Bank liable for slander of title, awarded actual damages including satisfaction of the mortgage and punitive damages, and Solley elected slander of title as the theory of damages.
- On appeal, the Bank challenges the sufficiency of pleading, damages, and punitive awards, while Solley challenges the election-of-remedies ruling and related issues; the court affirms in part, reverses in part, and remands.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Slander of title pleading sufficiency | Solley argues the Bank published a false, derogatory statement. | Bank contends the mortgage was not false and pleading was deficient. | Issue unpreserved; not reviewable. |
| Award of special damages in slander of title | Solley entitled to special damages including attorney fees to clear the title. | Bank challenges proof and amount of special damages. | Partially sustained; remand to calculate proper special damages; attorney fees may be recoverable. |
| Punitive damages validity/amount | Damages warranted due to reckless conduct and Bank's egregious actions. | Punitive damages excessive or unsupported by willful misconduct. | Remanded for recalculation with actual damages; punitive damages to be reconsidered with new trial. |
| Election of remedies; consumer status; amendment to complaint | No error in remedy election; consumer status not dispositive here; amendment not reviewable. | Election of remedies raised, consumer issue potentially relevant, pleading issues preserved. | Election of remedies unpreserved; consumer status not reviewed; amendment issue unpreserved. |
Key Cases Cited
- Huff v. Jennings, 319 S.C. 142 (Ct.App. 1995) (elements and special damages in slander of title; damages may include costs to clear title)
- TXO Prod. Corp. v. Alliance Res. Corp., 419 S.E.2d 870 (W.Va. 1992) (attorney fees may be recoverable as special damages in slander of title)
- Neff v. Neff, 247 P.3d 380 (Utah 2011) (special damages; expenses to clear clouds on title may be recoverable)