Narrative Opinion Summary
This case involves the Supreme Court of Wisconsin's examination of whether the common law absolute privilege for statements made in judicial proceedings extends to protect against slander of title claims for filing a false lis pendens. The plaintiff corporations alleged that the defendants, including an attorney, recorded a frivolous lis pendens concerning property involved in a bankruptcy case, clouding the title and obstructing sales. The bankruptcy court dismissed the underlying complaint, yet the defendants had not withdrawn the lis pendens. The state circuit court initially ruled that the filing was absolutely privileged, but the appellate court reversed, applying a conditional privilege instead. The Supreme Court affirmed this decision, emphasizing that section 706.13 of the Wisconsin Statutes subjects false or frivolous lis pendens filings to potential liability, removing the shield of absolute privilege and imposing a conditional privilege. This ruling requires proving slander of title claims with clear, satisfactory, and convincing evidence, aligning with the statute's punitive intent. The case is remanded for further proceedings to assess the defendants' knowledge of the complaint's frivolous nature, with the possibility of statutory damages for the plaintiffs.
Legal Issues Addressed
Conditional Privilege in Filing Lis Pendenssubscribe to see similar legal issues
Application: The court determined that the absolute privilege typically associated with judicial proceedings does not extend to the filing of a lis pendens when used to slander title, instead applying a conditional privilege.
Reasoning: The absolute privilege doctrine for pleadings has been modified by section 706.13, making it a conditional privilege in this context.
Requirements for Establishing Slander of Titlesubscribe to see similar legal issues
Application: The elements to establish a slander of title claim include publication causing injurious falsehood, communication to a third party, substantial influence on others not to engage with the plaintiff, and resulting special damages.
Reasoning: To establish a slander of title claim, a plaintiff must demonstrate that: 1) a publication causes injurious falsehood or disparagement of property; 2) the statement is communicated to a third party; 3) it substantially influences others not to engage with the plaintiff; and 4) it leads to special damages.
Slander of Title under Wisconsin Statutes Section 706.13subscribe to see similar legal issues
Application: The court held that filing a false or frivolous lis pendens can constitute slander of title, subject to statutory penalties under sec. 706.13, and does not benefit from absolute privilege.
Reasoning: The court affirmed the Court of Appeals' decision that such an absolute privilege does not apply to actions defined under sec. 706.13, which allows for a cause of action and statutory penalties for slander of title in this context.
Standard of Proof for Slander of Title Claimssubscribe to see similar legal issues
Application: The court adopted the clear, satisfactory, and convincing evidence standard for proving slander of title claims under sec. 706.13, reflecting the legislature's intent for significant penalties.
Reasoning: The appropriate standard of proof for such claims is clear, satisfactory, and convincing evidence, as established in prior case law, reflecting the legislature's intent to impose significant penalties for fraudulent title impairment.