What is the penalty amount described for cloud on title in terms of the 'greater of' amounts?

• A. The greater of trouble damages and $1000
• B. $2000
• C. $1000
• D. Treble damages

Answer: (A)

The main idea here is that penalties for clouding title mix a floor with a potential multiplier. The rule says the award is the greater of three times the actual damages or a fixed $1,000. This structure ensures a meaningful remedy for larger losses (through treble damages) while guaranteeing at least $1,000 in smaller cases.

For example, if the actual damages are $500, treble damages would be $1,500, which is more than $1,000, so the penalty is $1,500. If actual damages are $300, treble damages would be $900, which is less than $1,000, so the penalty is $1,000. If actual damages are $4,000, treble damages would be $12,000, which is far greater than $1,000, so the penalty is $12,000.

The other options don’t fit because a flat $2,000 ignores the potential for much larger treble damages, and a flat $1,000 ignores the possibility of higher treble damages when actual damages are substantial, while treble damages alone omits the minimum $1,000 floor.