{"id":1830,"date":"2017-07-26T17:30:05","date_gmt":"2017-07-26T17:30:05","guid":{"rendered":"https:\/\/www.sherin.com\/real-estate\/?p=1830"},"modified":"2021-04-22T18:42:58","modified_gmt":"2021-04-22T18:42:58","slug":"the-law-of-lis-pendens-in-massachusetts-and-rhode-island","status":"publish","type":"post","link":"https:\/\/www.sherin.com\/real-estate\/2017\/07\/26\/the-law-of-lis-pendens-in-massachusetts-and-rhode-island\/","title":{"rendered":"The Law of Lis Pendens in Massachusetts and Rhode Island"},"content":{"rendered":"<p>If you are involved in a real estate dispute in Massachusetts or Rhode Island, it is important to know the law and procedure for obtaining, attacking, and defending a notice of <em>lis pendens<\/em>.\u00a0 A notice, or memorandum, of <em>lis pendens<\/em> is a statutory procedure designed to notify potential real estate buyers and other interested persons of pending lawsuits affecting title to real property.\u00a0 Litigation battles arise over <em>lis pendens<\/em> notices, however, because upon recording in the registry or recorder of deeds they can impede the title holder\u2019s efforts to transfer, mortgage, or develop the property, and may become critical leverage in real estate litigation.\u00a0 Aware of this potential impact, statutory and case law in Massachusetts and Rhode Island has developed tools for attacking and quashing <em>lis pendens <\/em>notices, and established avenues for resisting these attacks.<\/p>\n<p><strong>I.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Origins of <em>Lis Pendens<\/em> Statutes<\/strong><\/p>\n<p>States developed <em>lis pendens<\/em>, or \u201cpending suit,\u201d statues as a remedy to the harsh common law principle that real property conveyed during the pendency of a lawsuit potentially affecting title or interest in the property was taken subject to the lawsuit.\u00a0\u00a0 Under the common law rule, a potential purchaser or tenant \u2013 even one without actual notice of any lawsuit \u2013 was considered to be on constructive notice of all lawsuits potentially affecting title or interest in the property, and was thus bound by any subsequent judgment.\u00a0 <em>Lis pendens<\/em> statutes, once adopted, protected prospective parties in interest by allowing them to obtain notice of pending litigation through the registry or recorder of deeds in the same manner as they obtained information regarding title, such as mortgages, leases, easements, or other encumbrances.<\/p>\n<p>While the <em>lis pendens<\/em> statues in Massachusetts and Rhode Island had similar origins, the procedures and case law surrounding them has diverged over the years.<\/p>\n<p><strong>II.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Law of <em>Lis Pendens<\/em> in Massachusetts<\/strong><\/p>\n<p>In Massachusetts, a plaintiff must obtain court approval before recording a notice of <em>lis pendens<\/em>.\u00a0 M.G.L. c. 184 \u00a7 15(a)-(b).\u00a0 In order to obtain court approval, the underlying complaint affecting title or interest in the property and giving rise to the memorandum of <em>lis pendens <\/em>must name as defendants all owners or leaseholders of record and must be verified and sworn under oath that the facts stated in the complaint are true and that no material facts have been omitted.\u00a0 In approving the memorandum, the court must make a finding that the action constitutes a claim affecting title to, use, or occupation of real property and endorse that finding on the memorandum.\u00a0 The nature of the claim, not its merits, determines whether a <em>lis pendens <\/em>shall issue.\u00a0 <em>See Sutherland v. Aoelean Development Corp.<\/em>, 399 Mass. 36-38 (1987) (affirming denial of petition to dissolve <em>lis pendens<\/em>);<em> Wolf v. Gormally, <\/em>440 Mass. 699, 701 (2004) (holding that statute applied to all claims affecting title or use and occupation of property).<\/p>\n<p>While <em>lis pendens <\/em>may be obtained in Massachusetts <em>ex parte<\/em>, in order to obtain this relief, the court must make an additional finding that either (1) the defendant is not subject to the court\u2019s jurisdiction or (2) there is a clear danger that the defendant, if notified in advance, will convey, encumber, damage, or destroy the property or its improvements.\u00a0 M.G.L. c. 184 \u00a7 15(b).<\/p>\n<p>Once obtained, plaintiff must record the memorandum of <em>lis pendens<\/em> with the registry of deeds along with an affidavit stating that the plaintiff or her attorney has served notice by certified mail to all parties to the action. M.G.L. c. 184 \u00a7 15(b).<\/p>\n<p>Litigants should be aware that Massachusetts law generally requires strict compliance with the procedures stated in M.G.L. c. 184 \u00a7 15 to obtain and defend a memorandum of <em>lis pendens<\/em>.\u00a0 <em>See DeCroteau v. DeCroteau<\/em>, 90 Mass. App. Ct. 903, 906 (2016) (affirming denial of <em>lis pendens<\/em>, stating, \u201cIn view of the serious consequences that may arise from the recording of a memorandum of lis pendens, strict compliance with the statutory prerequisites is required\u201d); <em>McMann v. McGowan<\/em>, 71 Mass. App. Ct. 513 (2008) (affirming order to dissolve memorandum of <em>lis pendens<\/em> due to omission of material facts).<\/p>\n<p>Recognizing the significant role of <em>lis pendens<\/em> in real estate litigation, Massachusetts law provides several avenues for attacking court approval of a <em>lis pendens <\/em>memorandum and the underlying action.\u00a0 M.G.L. c. 184 \u00a7 15(c).<\/p>\n<p>First, if the memorandum of <em>lis pendens <\/em>is approved <em>ex parte<\/em>, an aggrieved party may move to dissolve the memorandum and be heard within three days after providing notice to the plaintiff. <em>\u00a0See Mann<\/em>, 71 Mass. App. Ct. at 520 (affirming dissolving of memorandum of <em>lis pendens<\/em>).<\/p>\n<p>Second, an aggrieved party may file a special motion to dismiss the underlying action if the complaint giving rise to the memorandum of <em>lis pendens<\/em> is frivolous The special motion to dismiss \u2013 which is directed at the claim or action itself and not the <em>lis pendens<\/em> \u2013 operates in a manner similar to an anti-SLAPP motion, providing for the award of reasonable attorneys\u2019 fees and costs to the moving party if successful.\u00a0 <em>See Galipault v. Wash Rock Investments, LLC<\/em>, 65 Mass. App. Ct. 73 (2005) (affirming trial court order dissolving <em>lis pendens<\/em>, granting special motion to dismiss action, and awarding attorneys\u2019 fees and costs); <em>Reem Property, LLC v. Engleby<\/em>, 2017 WL 1433302, No. 15-40127-PBS (D. Mass. April 21, 2017) (granting special motion to dismiss and awarding attorneys\u2019 fees and costs).<\/p>\n<p>Third, Massachusetts law provides an immediate right of appeal to a single justice of the Massachusetts Appeals Court under M.G.L. c. 231 \u00a7 118 for interlocutory rulings under the <em>lis pendens<\/em> statute.\u00a0 M.G.L. c. 184 \u00a7 15(d).\u00a0 <em>See Wolf<\/em>, 440 Mass. at 701-702; <em>Shrewsbury v. Seaport Partners L.P.<\/em>, 63 Mass. App. Ct. 272) (2005) (statutory right of appeal from order denying approval of memorandum of <em>lis pendens<\/em> not limited to motion denied <em>ex parte<\/em>).<\/p>\n<p>Finally, while misuse of <em>lis pendens<\/em> procedure may expose a litigant to fees, costs, and other counterclaims, Massachusetts law states that the recording of a notice of <em>lis pendens<\/em> in connection with a lawsuit potentially affecting title to real estate lies within the absolute privilege afforded to judicial proceedings, thereby protecting the litigant from a claim of slander to title.\u00a0 <em>See Powell v. Stevens<\/em>, 69 Mass. App. Ct. 87 (2007) (affirming trial court\u2019s granting of summary judgment dismissing claim of slander to title).\u00a0 Other counterclaims, however, may be available to an aggrieved property owner depending on the factual circumstances of the case.<\/p>\n<p><strong>III.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Law of <em>Lis Pendens<\/em> in Rhode Island<\/strong><\/p>\n<p>In Rhode Island, a plaintiff may record a notice of <em>lis pendens<\/em> without court approval.\u00a0 A notice of <em>lis pendens<\/em> may arise from any action concerning title to real property, or any interest or easement therein.\u00a0 R.I. Gen. Laws \u00a7 9-4-9.\u00a0 The notice must state the names of the parties to the lawsuit affecting title to real estate, or any interest or easement therein, the court where the complaint is filed and the date of filing, a brief summary of the complaint, and a description of the real estate affected, and must be recorded with the recorder of deeds in the city or town in which the real estate is situated.\u00a0 The plaintiff is required to provide a copy of the notice by mail to all named parties at their last known address, though failure to mail a copy of the notice does not invalidate the <em>lis pendens<\/em>.<\/p>\n<p>A party aggrieved of a notice of <em>lis pendens<\/em> may file a motion to quash in the trial court.\u00a0 <em>See Gill v. Wagner<\/em>, 813 A.2d 959, 961 (R.I. 2002) (vacating trial court order quashing notice of <em>lis pendens<\/em>).\u00a0 An order quashing a notice of <em>lis pendens<\/em> is appealable.\u00a0 <em>Id. <\/em>at 959, n.1.<\/p>\n<p>The Rhode Island Supreme Court has affirmed the constitutionality of Rhode Island\u2019s <em>lis pendens <\/em>statute, which requires no prior notice or hearing.\u00a0 In <em>George v. Oakhurst Realty, Inc.<\/em>, 414 A.2d 471 (R.I. 1980), the defendant challenged the statute on the grounds that it amounted to an unconstitutional taking in violation of due process of law.\u00a0 Reversing the trial court\u2019s quashing of the notice of <em>lis pendens<\/em>, the Rhode Island Supreme Court rejected the due process argument, stating \u201cLis pendens [\u2026] is not a lien but merely puts all prospective buyers on notice that there is a suit pending involving an issue of title to real property.\u00a0 We therefore find that due process of law does not mandate notice and opportunity to be heard before the filing of a notice of lis pendens.\u201d\u00a0 <em>Id. <\/em>at 474.<\/p>\n<p>Recording notice of <em>lis pendens<\/em> in Rhode Island is not without risk for the plaintiff.\u00a0 Rhode Island courts recognize and have awarded significant damages to claimants under a cause of action for slander to title arising from the malicious filing of a <em>lis pendens<\/em> notice.\u00a0\u00a0 In <em>Montecalvo v. Mandarelli<\/em>, 682 A.2d 918, 925 (1996), the Rhode Island Supreme Court affirmed a slander to title judgment against a broker for maliciously recording a notice of <em>lis pendens<\/em>, awarding $50,000 in damages for diminution in value of the property resulting from the <em>lis pendens<\/em>.\u00a0 More recently, in <em>Carrozza v. Voccola<\/em>, 90 A.3d 142, the Rhode Island Supreme Court affirmed trial court\u2019s finding that plaintiff was liable for slander to title due to his malicious filing of notices of <em>lis pendens <\/em>and affirmed an award of compensatory damages of $630,000 based on the loss of value of the affected properties along with $422,500 in punitive damages and approximately $175,000 in attorneys\u2019 fees and expenses.<\/p>\n<p><strong>IV.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Conclusion<\/strong><\/p>\n<p><strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/strong>The recording of a notice of <em>lis pendens<\/em> is a powerful tool in real estate litigation, but it is not without procedural hurdles and risk.\u00a0 If you are involved in a dispute that may affect title or interest in real property in Massachusetts or Rhode Island, you should consult real estate litigation counsel before deciding how to proceed.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you are involved in a real estate dispute in Massachusetts or Rhode Island, it is important to know the law and procedure for obtaining, attacking, and defending a notice of lis pendens.\u00a0 A notice, or memorandum, of lis pendens is a statutory procedure designed to notify potential real estate buyers and other interested persons [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":1831,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[],"tags":[],"class_list":["post-1830","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - 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