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    Vs. Herbal Cove

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    Jo Lumbres
    The court held that a realty corporation could not file a notice of lis pendens against a property owner based on a complaint seeking collection and damages. While the complaint alleged a lien or encumbrance, a collection lawsuit is not the proper way to enforce a contractor's lien under the law. The property was also not shown to be insufficient to pay debts or subject to other creditors' claims, and the complaint did not involve insolvency or determining preferred creditors.

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    Vs. Herbal Cove

    Uploaded by

    Jo Lumbres
    16 views1 page
    The court held that a realty corporation could not file a notice of lis pendens against a property owner based on a complaint seeking collection and damages. While the complaint alleged a lien or encumbrance, a collection lawsuit is not the proper way to enforce a contractor's lien under the law. The property was also not shown to be insufficient to pay debts or subject to other creditors' claims, and the complaint did not involve insolvency or determining preferred creditors.

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    ruling of the court

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    Atlantic Erectors

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    The court held that a realty corporation could not file a notice of lis pendens against a property owner based on a complaint seeking collection and damages. While the complaint alleged a lien or encumbrance, a collection lawsuit is not the proper way to enforce a contractor's lien under the law. The property was also not shown to be insufficient to pay debts or subject to other creditors' claims, and the complaint did not involve insolvency or determining preferred creditors.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as doc, pdf, or txt
    16 views1 page

    Vs. Herbal Cove

    Uploaded by

    Jo Lumbres
    The court held that a realty corporation could not file a notice of lis pendens against a property owner based on a complaint seeking collection and damages. While the complaint alleged a lien or encumbrance, a collection lawsuit is not the proper way to enforce a contractor's lien under the law. The property was also not shown to be insufficient to pay debts or subject to other creditors' claims, and the complaint did not involve insolvency or determining preferred creditors.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
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    of 1

    ATLANTIC ERECTORS, INC.

    REALTY CORPORATION Held: NO

    vs.

    HERBAL

    COVE

    Even assuming that petitioner has sufficiently alleged such lien or encumbrance in its complaint, the annotation of the notice of lis pendens would still be unjustified because a complaint for collection and damages is not the proper mode of the enforcement of a contractors lien. Art. 2242 is not applicable in this case since nowhere does it show that respondents property was subject to the claims of other creditors or was insufficient to pay for all concurring debts. Furthermore, the Complaint did not pertain to insolvency proceedings or to any other action in which the adjudication of claims of preferred creditors could be ascertained.

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