Wilkinson Development, Inc. v. Ford & Ford Investments

Summary

The Nebraska Supreme Court affirmed the denial of PSK, LLC's motion to vacate a decree of specific performance involving commercial real estate. The court held that a properly filed lis pendens provided constructive notice to PSK as a subsequent purchaser and bound it to the proceedings, notwithstanding arguments concerning equitable conversion and compulsory joinder. The court also held that Nebraska's specific lis pendens statute controlled over the general joinder statute.

Holdings

1. Under Neb. Rev. Stat. § 25-531, a purchaser whose conveyance is executed or recorded after a notice of lis pendens is filed is deemed a subsequent purchaser and is bound by proceedings taken after the filing to the same extent as if made a party.
2. The filing of a valid lis pendens notice relieved Wilkinson of any continuing obligation to join PSK based on knowledge acquired after the notice was filed.
3. The specific lis pendens statute controls over the general joinder statute when determining whether a subsequent purchaser of disputed real property must be joined.
4. PSK could not invoke equitable conversion to avoid the effect of the lis pendens notice because it had knowledge of Wilkinson's adverse claim and had not paid the entire purchase price before the notice was filed.
5. PSK's failure to intervene did not require vacation of the specific-performance decree; intervention was available as a means of preserving PSK's assertion that it should have been heard.

Questions Presented

1. Whether PSK was required to be joined as a necessary or indispensable party in Wilkinson's specific-performance action.
2. Whether Nebraska's lis pendens statute eliminated any obligation to join PSK as a subsequent purchaser of the property.
3. Whether PSK's alleged knowledge of Wilkinson's contract or PSK's purchase agreement affected the application of lis pendens and equitable conversion.
4. Whether PSK's failure to intervene required vacation of the specific-performance decree.

Disposition

affirmed