The California Court of Appeals rules that a lis pendens on disputed trust property is not justified when a claimant can be fully compensated by monetary damages. Campbell v. The Superior Court of California(Ca. Ct. of App., No. GIC 813575, Sept. 14, 2005).
John Campbell's father was trustee of a trust. Mr. Campbell claimed his father's girlfriend, Elissa La Barrie, exerted undue influence over his father by persuading him to spend trust money on remodeling her house. After his father died and Mr. Campbell became trustee of the trust, he filed a complaint against Ms. La Barrie. He asked for an equitable lien and a constructive trust on her house. After filing his claim, Mr. Campbell recorded a lis pendenson her house, which gave notice that a real property claim had been made against the house that could affect the title.
Ms. La Barrie asked the court to expunge the lis pendensbecause she claimed Mr. Campbell's complaint did not state a real property claim. The court agreed, and Mr. Campbell appealed.
The California Court of Appeals affirms, holding that Mr. Campbell's request for an equitable lien and a constructive trust did not state a real property claim that would justify a lis pendens. The court states that even if a claim affects title to a property, a lis pendensmust be expunged if, as in this case, the claimant can be fully compensated by a monetary award.
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