Executive Excellence, LLC v. Martin Brothers Investments, LLC
Georgia Court of Appeals
710 S.E.2d 169 (2011)
Executive Excellence and an affiliated firm (sellers, defendants) contracted to sell two tracts of land to Martin Brothers Investments and an affiliated firm (buyers, plaintiffs), contingent on the buyers securing rezoning by an April 2007 deadline. When the deadline passed without action, the sellers rescinded. Before formally suing, the buyers or their agents told third parties in April and May 2007 that they intended to pursue rezoning and enforce the contracts, and that the litigation could 'teach [the seller's agent] a lesson' and drag on for years; the buyers then sued at the end of May and filed lis pendens notices, later telling third parties in October 2007 that the litigation could continue for five to ten years. The buyers eventually dropped their claims without prejudice but never removed the lis pendens. The sellers counterclaimed for slander of title based on the buyers' statements and the lis pendens filings; the trial court dismissed the counterclaim.
Whether statements to third parties describing pending or anticipated litigation over a real-estate dispute can support a slander-of-title claim when the statements were substantially true at the time they were made.