Procedural Posture

Posted On May 19, 2021

Posted By Layla Brooks

Appellant realtor and property buyer sought review of an order by the Superior Court of Sacramento County (California), finding them liable to appellee seller in an action for breach of contract and disparagement of title after a land sale transaction failed to be consummated.

Overview

Appellee seller owned a ranch which appellant buyer was interested in purchasing. Appellee signed an agreement drafted by appellant realtor for the sale but included an express condition requiring approval by the corporate controller. The controller found the agreement disadvantageous and cancelled the transaction. Realtor, however, contacted buyer claiming appellee would go ahead with the sale. In the meantime, appellees found another buyer. Appellant buyer filed a notice of pending action, a lis pendens on the property. Realtor filed an action for commission on the purported agreement. Because of the pending litigation, appellee was unable to obtain title insurance to effectuate the sale with the new buyer and filed a counter-claim. The trial court found against appellants. The court reversed the trial court as to appellant buyer’s lis pendens, stating that publications made in the course of a judicial proceeding, including recordation of a lis pendens, were absolutely privileged and did not support an award of damages. Further, the court affirmed as to realtor denying him a commission and modifying the damage award against him.

Outcome

The court reversed the judgment of the trial court granting respondent seller damages against appellant buyer because the buyer’s notice of lis pendens was privileged, and modified the damage award against appellant realtor because a portion of the damages were speculative.