Opinion ID: 1581536
Heading Depth: 3
Heading Rank: 1

Heading: The Doctrine of Lis Pendens

Text: [2] ¶ 17. The term lis pendens means pending litigation. [5] The purpose of the doctrine is not, primarily, notice, but to hold the subject of the suitthe reswithin the power of the court, so as to enable it to pronounce judgment upon it. Brown v. Cohn, 95 Wis. 90, 93, 69 N.W.71 (1896). ¶ 18. Under this doctrine when property that is the subject of a suit is conveyed, the purchaser or encumbrancer pendente lite (while the action is pending) is bound by the outcome of the litigation. This wellestablished rule is expressed as follows in the Restatement (Second) of Judgments (1982): § 44. Effect of Judgment Concerning Property Transferred While Action Is Pending A successor in interest of property that is the subject of a pending action to which his transferor is a party is bound by and entitled to the benefits of the rules of res judicata to the same extent as his transferor, unless: (1) A procedure exists for notifying potential successors in interest of pending actions concerning property, the procedure was not followed, and the successor did not otherwise have knowledge of the actions; or (2) The opposing party in the action knew of the transfer to the successor and knew also that the successor was unaware of the pending action. [3] ¶ 19. Without the doctrine of lis pendens, a defeated litigant could avoid the final judgment of a court by transferring disputed real property to another person, who then could claim it free of any subsequently rendered judgment. Belleville State Bank v. Steele, 117 Wis. 2d 563, 571, 345 N.W.2d 405 (1984). This rationale is repeated in the Restatement, which states in part: If property is transferred when an action is pending concerning it, the successor in interest may be aware of the litigation and seasonably join as a party, by intervention or by substitution in place of his transferor. In that circumstance, the successor then becomes bound because he is a party. If he is aware of the litigation but does not join as a party, he acquiesces in the transferor's continuing, for purposes of the litigation, to be the apparent owner of the interest in the property. His doing so is in effect treating the transferor as his representative in the action. Restatement (Second) of Judgments § 44 cmt. a (1982). ¶ 20. The doctrine of lis pendens is principally concerned with the power of the court to effectively administer justice when real property is in dispute.