Prappas v. MEYERLAND COM. IMP. ASS'N

795 S.W.2d 794
CourtCourt of Appeals of Texas
DecidedJune 28, 1990
DocketA14-89-199-CV
StatusPublished
Cited by3 cases

This text of 795 S.W.2d 794 (Prappas v. MEYERLAND COM. IMP. ASS'N) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Prappas v. MEYERLAND COM. IMP. ASS'N, 795 S.W.2d 794 (Tex. Ct. App. 1990).

Opinion

795 S.W.2d 794 (1990)

George J. PRAPPAS, et al., Appellants,
v.
MEYERLAND COMMUNITY IMPROVEMENT ASSOCIATION, et al., Appellees.

No. A14-89-199-CV.

Court of Appeals of Texas, Houston (14th Dist.).

June 28, 1990.
Rehearing Denied August 23, 1990.

D. Craig Olivier, Jay S. Siskind, George J. Prappas, Houston, for appellants.

M. Karinne McCullough, Gregg S. Weinberg, Randall D. Wilkins, Nicholas E. Zito, Houston, for appellees.

Before J. CURTISS BROWN, C.J., and JUNELL and DRAUGHN, JJ.

*795 OPINION

JUNELL, Justice.

Lis pendens provides a mechanism for putting the public on notice of certain categories of litigation involving real property. This case raises the issue whether a lis pendens is a part of the judicial process so that the resulting absolute privilege bars a damage suit over the filing of the lis pendens. Prior decisions indicate that the answer is yes. Griffin v. Rowden, 702 S.W.2d 692 (Tex.App.-Dallas 1985, writ ref'd n.r.e.); Kropp v. Prather, 526 S.W.2d 283 (Tex.Civ.App.-Tyler 1975, writ ref'd n.r.e.). We must decide whether the outcome changes if (a) the lis pendens in question derives from litigation which falls outside the statutory categories, (b) malice actuated the filing, or (c) there was undue delay in filing.

I

The facts are uncomplicated. Appellants are homeowners who sought to sell their land after heavy flooding occurred in 1983. Although appellees include other homeowners, we will treat them as one with the Meyerland Community Improvement Association (MCIA). MCIA brought suit upon learning of the possible sale, fearing commercial development would follow in violation of existing deed restrictions. That lawsuit failed. It was a declaratory judgment suit in which MCIA sought to stop certain lot owners from selling their properties for a proposed nonresidential use. After the trial court judgment but just before the real estate transaction was to take place, MCIA filed a lis pendens notice, the recordation of which quashed the sale. The court of appeals affirmed the judgment, and the supreme court declined to review the case. For further factual background, see Meyerland Comm. Impr. Ass'n v. Temple, 700 S.W.2d 263 (Tex.App. —Houston [1st Dist.] 1985, writ ref'd n.r. e.). As soon as the supreme court refused the writ, the litigation was finished and MCIA withdrew the lis pendens.

But because the sale was now dead, the would-be sellers sued MCIA for slander of title, tortious interference with contract, and various other causes of action. They alleged that the lis pendens was wrongful (in other words, unauthorized by statute) and therefore unprivileged. The trial court rendered a take nothing summary judgment against them.

There is a factual twist worth bearing in mind: no one ever filed a notice of lis pendens while the original jury trial was occurring. Thus when the trial judge in that suit signed the judgment in November 1984, no lis pendens existed. This is not to suggest the suit was unknown or clandestine. To the contrary, all relevant parties —including the potential purchaser— had actual knowledge of the litigation, and for that reason there was no need to put anyone on constructive notice. As the appellate process began going forward, MCIA learned that the proposed transaction was on the verge of taking place. MCIA filed its notice of lis pendens in March 1985, approximately one week before closing was to occur. Strange though it may seem, that act resulted in the transaction's failure, despite the indisputable fact that everyone involved in the transaction already knew of the litigation.

II

There are three major lis pendens statutes involved in this case. The first authorizes use of the device and regulates the manner of filing.[1] The second spells out the effects of a such a filing.[2] The *796 third provides a statutory method for cancellation of a lis pendens.[3] That statutory method for cancelling a lis pendens is not the exclusive remedy for nullifying an unauthorized filing, however. When there is no basis to support a lis pendens, the affected party may seek an appropriate order from the district court, with mandamus relief available in the event the district court refuses to order cancellation. See Olbrich v. Touchy, 780 S.W.2d 6 (Tex.App. —Houston [14th Dist.] 1989, orig. proc.); Moss v. Tennant, 722 S.W.2d 762 (Tex.App. —Houston [14th Dist.] 1986, orig. proc.); Helmsley-Spear of Texas, Inc. v. Blanton, 699 S.W.2d 643 (Tex.App.-Houston [14th Dist.] 1985, orig. proc.). In order to determine whether a statutory basis existed for filing the notice in this case, we look to the requirements of § 12.007(a).

Section 12.007(a) is operative only when the underlying lawsuit involves either

(1) title to real property,
(2) establishment of an interest in real property, or
(3) enforcement of an encumbrance against real property.

Here the underlying lawsuit was a declaratory judgment action seeking construction of certain deed restrictions. It also asked for injunctive relief. Plainly, it fails to qualify within the first two categories; only the encumbrance option remains. The parties have briefed and argued the issue whether MCIA v. Temple was litigation to enforce an encumbrance. We will assume, without deciding, that the declaratory judgment suit there was not an action to enforce an encumbrance. We make this assumption because appellants concede the existence of an absolute privilege in the event of statutory authority for the filing. See Griffin v. Rowden, 702 S.W.2d 692 (Tex.App.-Dallas 1985, writ ref'd n.r.e.) (absolute privilege for filing lis pendens); Kropp v. Prather, 526 S.W.2d 283 (Tex. Civ.App.-Tyler 1975, writ ref'd n.r.e.) (same).

It is worthwhile to examine the Griffin and Kropp opinions before undertaking to decide the scope of the privilege, since they are the principal cases which expound Texas law on the subject. In Kropp the court started with the proposition that "[a]ny communication, oral or written, uttered or published in the due course of a judicial proceeding is absolutely privileged and cannot form the basis for a cause of action in libel or slander." 526 S.W.2d at 286; see, e.g., Runge v. Franklin, 72 Tex. 585, 10 S.W. 721 (1889) (recognizing the rule). The court then characterized the issue as whether a lis pendens is a *797 publication in the course of a judicial proceeding. It concluded:

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795 S.W.2d 794, Counsel Stack Legal Research, https://law.counselstack.com/opinion/prappas-v-meyerland-com-imp-assn-texapp-1990.