In Finch Aerospace Corp. v. City of San Diego, published February 24, 2017, the Fourth District Court of Appeal, Division 1, affirmed a dismissal on demurrer of a slander of title action against the city, but ruled that the trial court's ground for sustaining the demurrer was erroneous.
The trial court ruled that the city was immune from liability for slander of title under Government Code sections 818.8 (which immunizes public entities from liability for misrepresentations) and 822.2 (which provides public employees with qualified immunity from liability for misrepresentations). The appellate court disagreed. For purposes of interpreting the two statutes, "misrepresentation" is defined narrowly as causes of action that form the common law tort of deceit, in its four forms, and involve interference with financial or commercial interests. Slander of title is not a form of deceit. It is a form of disparagement, which is a separate tort. The appellate court ruled, however, that under the facts the plaintiff failed to state a cause of action for slander of title.
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