In Re Qfp Ii Lp And Rgv Ii Llc V The State Of Texas

Key Facts

Transaction Type

Issues

• Whether the amended notice of lis pendens must be expunged as to properties that were never owned by Pilatus, specifically Lots 1, 2, 3A, and 3B, as opposed to Lots 4A and 4B where Pilatus had title
• Whether the trial court abused its discretion by denying relators' motion to expunge the notice of lis pendens filed by SPD

Holdings

Remedies

• The Court directed the trial court to enter a new order granting expunction of the amended notice of lis pendens as to Lots 1, 2, 3A, and 3B, while denying expunction as to Lots 4A and 4B, and denied the petition for writ of mandamus in part as to all other relief sought
• The Court conditionally granted the petition for writ of mandamus in part, directing the trial court to vacate its April 14, 2025 order denying the motion to expunge the amended notice of lis pendens

Contract Value

Legal Principles

• In determining whether a notice of lis pendens should be expunged under Texas Property Code § 12.0071(c), the court must determine whether the claimant fails to establish by a preponderance of the evidence the probable validity of the real property claim. The pleading on which the notice is based must contain a real property claim. The trial court's ruling is reviewed de novo.
• A notice of lis pendens may be obtained only when the underlying lawsuit involves title to real property, the establishment of an interest in real property, or the enforcement of an encumbrance against real property. The suit must claim a direct interest in real property rather than a collateral interest; if the suit seeks a property interest only to secure monetary compensation, the interest is merely collateral and will not support a lis pendens. A claim asserting a constructive trust over property, or equitable ownership of property, or asserting a collateral interest in real property made for the purposes of securing monetary compensation is not a real property claim that will support a notice of lis pendens. The court reviews the trial court's ruling on lis pendens expunction under a de novo standard.
• The court applies a preponderance of the evidence standard to determine whether a real property claim has probable validity for lis pendens purposes. The court reviews the trial court's ruling on lis pendens expunction de novo.

Precedent Name

• In re H.E.B. Grocery Co.
• Walker v. Packer
• Countrywide Home Loans, Inc. v. Howard
• In re Gaudet
• Long Beach Mortg. Co. v. Evans

Cited Statute

• Texas Rules of Appellate Procedure
• Texas Securities Act
• Texas Rules of Civil Procedure
• Texas Business and Commerce Code
• Texas Property Code

Judge Name

Passage Text

• Based on the facts shown, Pilatus never had title to the other two tracts of land listed in the amended notice of lis pendens, and none of its causes of action would affect title to those tracts. Accordingly, the amended notice of lis pendens must be expunged as to those properties.
• A claim asserting a constructive trust over property, or equitable ownership of property, or asserting a collateral interest in real property, made for the purposes of securing monetary compensation, is not a real property claim that will support a notice of lis pendens.
• We conditionally grant the petition for writ of mandamus in part, and we direct the trial court to: (1) vacate its April 14, 2025 order denying relators' motion to expunge the amended notice of lis pendens; and (2) enter a new order granting expunction as to Lots 1, 2, 3A, and 3B, and denying expunction as to Lots 4A and 4B.

Damages / Relief Type

• Monetary damages sought in underlying lawsuit; specific amount not specified in document
• Expunction of notice of lis pendens granted for Lots 1, 2, 3A, and 3B; denied for Lots 4A and 4B
• Declaratory relief sought regarding invalidity of loan, deed of trust, and deed in lieu of foreclosure