LOUIS CHIUSOLO, PETITIONER,
v.
WILLIAM KENNEDY, RESPONDENT

Fla. | 1993-02-25
No. 79103
BARKETT, C.J., and OVERTON, McDonald, SHAW, GRIMES and KOGAN, JJ., concur.
614 So. 2d 491 Florida Supreme Court (1993) Caution
Cited by 119 cases

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Synopsis

The Florida Supreme Court addressed the standard for discharging a lis pendens notice filed in connection with a lawsuit seeking to impose a resulting and constructive trust on real property. The Court held that a lis pendens cannot be discharged if the proponent establishes a fair nexus between the property and the lawsuit, rather than requiring proof of a substantial likelihood of success on the merits.


Holding

A lis pendens cannot be discharged if the proponent can establish a fair nexus between the apparent legal or equitable ownership of the property and the dispute embodied in the lawsuit. The trial court need not determine likelihood of alienation or intervening liens, but only whether alienation or imposition of intervening liens could conceivably disserve the purposes of lis pendens. The burden of proof rests on the proponent, but the quantum required is less severe than substantial likelihood of success.


Headnotes

[1] A lis pendens serves to notify future purchasers or encumbrancers of a property that a lawsuit affecting title to that property is pending.

[2] The purpose of a lis pendens is to protect both the plaintiff from intervening liens and third parties from becoming involved in the dispute.

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Key Quotes

“One of several purposes underlying the doctrine of lis pendens is that, when a suit is filed that could affect title in property, some notice should be given to future purchasers or encumbrancers of that property.”

Establishes the foundational purpose of lis pendens doctrine to warn third parties

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Facts & Procedural History

Petitioner Louis Chiusolo filed a lis pendens in connection with a lawsuit claiming he had advanced funds used to purchase real property and should ha…

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Opinion of the Court
PER CURIAM.

PER CURIAM.

We have for review Chiusolo v. Kennedy, 589 So. 2d 420 (Fla. 5th DCA1991), which certified conflict with Cacaro v. Swan, 394 So. 2d 538 (Fla. 4th DCA), review dismissed, 402 So. 2d 608 (Fla.1981). We have jurisdiction. Art. V, § 3(b)(4), Fla. Const. Petitioner Louis Chiusolo filed a lis pen-dens in connection with his lawsuit seeking to impose a resulting and constructive trust on certain real property in which he claimed an interest. The gist of the complaint in the suit was that Chiusolo had advanced funds ultimately used to purchase the property and in return was to receive stock in the corporation that actually owned the property. He alleged the stock was never given him. The trial court discharged the lis pendens, and Chiusolo appealed.

The en banc Fifth District reversed and in doing so receded from its own precedent in Sparks v. Charles Wayne Group, 568 So. 2d 512 (Fla. 5th DCA1990). The Fifth District held that the proponent of the lis pendens bears the burden of showing that the claim affects the real property in question and that there is a substantial likelihood of success on the merits. Id. at 421.

One of several purposes underlying the doctrine of lis pendens is that, when a suit is filed that could affect title in property, some notice should be given to future purchasers or encumbrancers of that property. DePass v. Chitty, 90 Fla. 77, 105 So. 148 (1925). This serves the purposes of protecting those purchasers or encumbrancers from becoming embroiled in the dispute,1 and of protecting the plaintiff from intervening liens that could impair any property rights claimed and also from possible extinguishment of the plaintiff’s unrecorded equitable lien. In sum, unlike a typical injunction, a lis pendens exists as much to warn third parties as to protect the plaintiff; and the procedural requirements associated with lis pendens should advance both of these important purposes.

Thus, we believe that the lis pen-dens cannot be dissolved if, in the evidentiary hearing on request for discharge, the proponent can establish a fair nexus between the apparent legal or equitable ownership of the property and the dispute embodied in the lawsuit.2 To this end, the trial court need not determine whether there is any likelihood the property will be alienated or subjected to intervening liens during the pendency of the cause. The relevant question is whether alienation of the property or the imposition of intervening liens, if either actually occurred, conceivably could disserve the purposes for which lis pendens exists.3 Where the answer is yes, fair nexus must be found.

Based on the policy outlined above, we do not agree that any greater proof is required of the proponent. We agree with the observation in Sparks, 568 So. 2d at 517, that the statutory reference to injunctions4 exists merely to permit property holders to ask in an appropriate case that the plaintiff post a bond where needed to protect the former from irreparable harm. The bond requirement, whenever appropriate, is a vehicle for protecting the property holders just as the lis pendens protects the plaintiff and third parties.

We approve in part and quash in part the opinion below. We disapprove Cacaro to the extent it conflicts with our views here. This cause is remanded for further proceedings in conformity with this opinion.

It is so ordered.

BARKETT, C.J., and OVERTON, McDonald, SHAW, GRIMES and KOGAN, JJ., concur. HARDING, J., concurs in part and dissents in part with an opinion.

.It is true that, if lis pendens were not available, a subsequent third-party purchase might extinguish a plaintiffs unrecorded lien against the property. Nevertheless, legal theories still might exist by which the third-party purchaser could be sued, even if unsuccessfully. Thus, lis pendens exists at least in part to prevent third-party purchasers from "buying” a lawsuit when they purchase the property.

. Thus, we agree that the burden of proof rests on the proponent, though the quantum of proof necessary is not as severe as that suggested by the District Court below.

. Accordingly, it is possible for the property holder to obtain discharge of the lis pendens where sufficient measures have been taken to protect the interests claimed by the plaintiff, in the event those interests ultimately prove to be valid.

. The lis pendens statute provides:

When the initial pleading does not show that the action is founded on a duly recorded instrument or on a lien claimed under part I of chapter 713, the court may control and discharge the notice of lis pendens as the court may grant and dissolve injunctions.

§ 48.23(3), Fla.Stat. (1991).

Other
HARDING, Justice,

HARDING, Justice,

concurring in part and dissenting in part.

I concur with the majority opinion which holds that a lis pendens cannot be dissolved if a fair nexus between the apparent legal or equitable ownership of the property and the dispute embodied in the lawsuit can be established. I respectfully dissent from the majority opinion when it holds that the burden of proof is on the, proponent of the lis pendens to show such a nexus. I agree with Judge Sharp in her opinion concurring in part and dissenting in part below that where the pleadings establish such a nexus, the burden should then be on the party challenging the lis pendens. Chiusolo, 589 So. 2d at 422 (Sharp, J., dissenting).


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Citator

Cited By (67 total)

  • …WELLS, Justice. We have for review Medical Facilities Development, Inc. v. Little Arch Creek Properties, Inc., 656 So. 2d 1300 (Fla. 3d DCA 1995), which expressly and directly conflicts with Chiusolo v. Kennedy, 614 So. 2d 491 (Fla.1993), Feinstein v. Dolene, Inc., 455 So. 2d 1126 (Fla. 4th DCA 1984), and Mohican Valley, Inc. v. MacDonald, 443 So. 2d 479 (Fla. 5th DCA 1984). These cases are in conflict over the question of whether a lis-pendens bond is required or, if dis…
  • Acapulco Constr., Inc. v. Redavo Ests., Inc., 645 So. 2d 182 (Fla. 3d DCA 1994)
    …ant dispute, and (2) jeopardize the viability of the plaintiffs’ unrecorded equitable claim as against subsequent intervening liens on the property. This being so, it is clear that the lis pendens should not have been dissolved. Chiusolo v. Kennedy, 614 So. 2d 491 (Fla. 1993). The central argument advanced by the defendants to avoid this result is that the plaintiffs failed to establish a viable constructive trust claim or any other claim against the subject property. We disagree. Clearly, it was not the pl…
  • Avalon Assocs. OF Del. Ltd. v. Avalon Park Assocs., Inc., 760 So. 2d 1132 (Fla. 5th DCA 2000)
    …een the property filed against and the dispute embodied in its lawsuit. Although not entitled to lis pendens as of right, it is entitled to maintain its lis pen-dens filing under the direction and control of the trial court. See Chiusolo v. Kennedy, 614 So. 2d 491 (Fla.1993). On remand, the trial court should exercise its discretion concerning the posting of a bond or imposition of other conditions or limitations. See Christian v. Sanderhoff, 731 So. 2d 804 (Fla. 4th DCA 1999); Taylor v. Cesery, 717 So. 2d 11…

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