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TWE Retirement Fund Trust v. Ream

Citations: 8 P.3d 1182; 198 Ariz. 268; 329 Ariz. Adv. Rep. 48; 2000 Ariz. App. LEXIS 132Docket: 1 CA-CV 99-0497

Court: Court of Appeals of Arizona; August 31, 2000; Arizona; State Appellate Court

Narrative Opinion Summary

The case before the Arizona Court of Appeals involved the TWE Retirement Fund Trust and the Linda L. Proctor Separate Property Trust as appellants contesting a notice of lis pendens filed by James J. Ream on behalf of Haight and Franzeo, in relation to a Nevada litigation concerning property in Arizona. The central legal issue regarded the validity of a lis pendens filed in Arizona for a lawsuit initiated outside the state, with the appellants challenging the jurisdiction of the Nevada court over Arizona real property. The court upheld the lis pendens, confirming its applicability to in personam actions and extraterritorial proceedings under Arizona statutes. The trial court's summary judgment was affirmed, invalidating the appellants' claims, as the Nevada court's jurisdiction was deemed proper and the lis pendens was found to be accurately filed. Additionally, the court ruled that Ream acted appropriately and did not violate any statutory provisions, as he did not claim an interest in the property. The decision emphasized that lis pendens serves as notice rather than affecting jurisdiction, consistent with Arizona law, and provided clarity on standing and procedural requirements for lis pendens within extraterritorial contexts.

Legal Issues Addressed

Extraterritorial Application of Lis Pendens

Application: The court affirmed the validity of filing a lis pendens in Arizona for an action filed in Nevada, asserting that such filings are permissible even when litigation occurs outside Arizona.

Reasoning: Filing a notice of lis pendens in a court outside Arizona does not encroach on Arizona's jurisdiction over its real property, as a lis pendens merely serves as a notice rather than asserting control over the property itself during litigation.

Inapplicability of A.R.S. Section 33-420

Application: The court clarified that liability under A.R.S. section 33-420 falls on the claimant, not the attorney, and Ream did not claim an interest in the property.

Reasoning: Since Ream acted as an attorney for the plaintiffs and did not claim interest in the property, this statute is inapplicable.

Jurisdictional Authority of Nevada Court

Application: The Nevada court was found to have jurisdiction to enforce specific performance in a contract dispute, even though the property was located in Arizona, based on personal jurisdiction over the parties involved.

Reasoning: A Nevada district court has subject matter jurisdiction to enforce specific performance for a property sale involving parties from different states.

Standing to Challenge Lis Pendens

Application: Eversole was found to lack standing to contest the lis pendens notices regarding properties he no longer owned.

Reasoning: Thus, Eversole lacked standing to contest the notices concerning properties he no longer owned.

Validity of Lis Pendens Notice

Application: The court determined that the notices of lis pendens filed by Ream were valid and contained no material misstatements, and that minor omissions did not impact their sufficiency.

Reasoning: The notices of lis pendens filed by Ream were deemed valid and free of material misstatements as defined by A.R.S. 12-1191 and 33-420.