Blue Star Palms, LLC v. LED Trust, LLC
128 So. 3d 36
| Fla. Dist. Ct. App. | 2012Background
- Blue Star petitions for writ of certiorari to quash a circuit-court denial of dissolution of a lis pendens.
- LED Trust and Dishi & Flowman sued Blue Star and parent-entity members for alleged co-investment deals relating to Blue Star’s parent.
- Negotiations were largely verbal; no signed operating agreement or operative incorporation document was produced.
- Complaint alleges breach, fraud, and equitable claims, but none directly targeted the condominium units themselves.
- Court held the lis pendens lacked a fair nexus to the property because claims sought membership interests and damages rather than title or possession of the units; petition granted and order quashed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether lis pendens must be dissolved for lack of fair nexus to the property | LED Trust contends ownership interests in Blue Star affect property. | Blue Star argues no direct claim against the units and no nexus to title. | Yes; lis pendens dissolved. |
Key Cases Cited
- Conseco Servs., LLC. v. Cuneo, 904 So.2d 438 (Fla. 3d DCA 2005) (requires fair nexus between ownership and lawsuit for unrecorded claims)
- Chiusolo v. Kennedy, 614 So.2d 491 (Fla. 1993) (establishes fair nexus as a condition for lis pendens)
- Lake Placid Holding Co. v. Paparone, 414 So.2d 564 (Fla. 2d DCA 1982) (no lis pendens where complaint cannot affect title)
- Ness Racquet Club, LLC v. Renzi Holdings, Inc., 959 So.2d 758 (Fla. 3d DCA 2007) (no lis pendens when no direct claim upon property)
- Powerline Development Corp. v. Assor, 458 So.2d 305 (Fla. 3d DCA 1984) (property interest claims cannot cloud title absent direct claim on real property)
- Sunrise Point, Inc. v. Foss, 373 So.2d 438 (Fla. 3d DCA 1979) (lis pendens proper when relief might affect property)