Opinion ID: 2590373
Heading Depth: 4
Heading Rank: 3

Heading: Fraudulent affidavit

Text: When Alkan first sued Mitch and Martha, its complaint alleged the house Martha bought was really Mitch's, and should be available to pay Alkan back for the money Mitch embezzled. With the complaint, Alkan filed a lis pendens on the house. Although it appears this lis pendens had no legal effect relevant to this case, [1] everyone, including the trial court, assumed that the lis pendens gave Alkan a security interest in the house against its claim for damages. In order to get Alkan to release the lis pendens, which she thought was a lien, Martha gave Alkan an affidavit. The affidavit provided: 1. I did not have any knowledge, nor did I receive the proceeds of any theft by Mitchell Asher from Alkan Shelter LLC. 2. I am the sole and exclusive owner of the property identified in the lis pendens filed by Alkan Shelter LLC (hereinafter the property). 3. The funds used to purchase the property were solely and exclusively my money and Mitchell Asher had no concealed interest in these funds. I did not purchase the property for Mitchell Asher and Mitchell Asher had no legal or equitable interest in the property. Alkan then released the lis pendens. The trial court found that Martha lied in this affidavit in order to defraud Alkan Shelter by hiding money [Mitch] stole from Alkan Shelter, that Alkan Shelter at that point in the litigation reasonably relied on the representation and dismissed the lis pendens voluntarily, and suffered the lack of those funds being secured and available to settle claims for this litigation. The court made this finding by clear and convincing evidence, and wrote: The court also finds by clear and convincing evidence that Martha Asher was recklessly indifferent to the rights of Alkan Shelter and the conduct by Martha Asher was outrageous in nature.