Federal Appeals Court Upholds <i>Lis Pendens</i> Law

The United States Court of Appeals for the Second Circuit in Diaz v. Patterson, 547 F. 3d 88, has rejected a due-process challenge to a New York law that allows a person who brings or plans to bring a lawsuit claiming an interest in real property to file a lis pendens against the property. The lis pendens is a document, filed in the office of the clerk of the county where the property is located, which serves to notify potential purchasers of claims against the property. It is valid for three years and can be extended for another three years upon a showing of good cause. Although a lis pendens does not technically prevent a transfer of the property, it may as a practical matter make the property impossible to sell or mortgage.