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Doctrine of Lis Pendens
Doctrine of Lis Pendens
By Ankit Raturi
[00516503516]
B.B.A. LL.B. (3rd Year)
1
Texas Water Rights Commission et al., Petitioners V. Crow Iron Works, et al, 582 S.W.2d 768 (1979) S. Ct. of
Texas. May 30, 1979
Purpose
Generally speaking, the purpose of lis pendens notice is twofold: (1) to protect
the filing party's alleged rights to the property that is in dispute in the lawsuit, and
(2) to put those interested in the property on notice of the lawsuit. The purpose
of lis pendes is to preserve rights to the real estate until the dispute with the
owner is resolved. Without the recording of a lis pendens, the person claiming an
interest in title or possession to the real estate runs the risk that the owner will
encumber or convey the property to an individual who is unaware of the dispute.
When another buyer or lender obtains an interest in real estate before they
become aware of a dispute over title, the claimant in the dispute loses his right to
recover the real estate.
Nature and Scope
Two theories have been advanced as the basis of the doctrine. Accordinf to some
authorities, a pending suit must be regarded as notice to all the world, and
pursuant to this it is argued that the person who deals with property involved
therein, having presumably known what he was doing, must have acted in bad
faith and therefore, properly bound by the judgement rendered. Other
authorities states that doctrine of lis pendens is based upon the necessity, as a
matter of public policy, of preventing litigants from disposing off the property in
controvery in such matter as to interfere with execution of the court’s decree.
The basis of this doctn'ne was aptly explained by Lord Cranwonh in Bellamy v.
Sabine ( 1857), in the following words: “It is scarcely correct to speak of HS
pendens as aifecting the purchaser through the doctrine of notice, though
undoubtedly the language of the courts often so describes its operation. It affects
him not because it amounts to notice, but because the law does not allow litigant
pan'ies to give to others pending the litigation rights to the pmperty in dispute so
as to prejudice the opposite party.” The rule is based not on the doctrine of notice
but on principle of expediency and public policy. Hence, no question of good faith
or bonafides arises.