Blue Star -v- LED Trust, No. 3D12-1728, slip op. (Fla. 3d DCA, October 24, 2012)
LED Trust filed a lis pendens against property owned by the Blue Star group, an entity in which the LED Trust was investing. LED’s action turned on counts including breach of contract, violations of corporate statutory duties, fraud, conspiracy to commit fraud, and for an accounting. None of those counts could be plugged into the property owned by Blue Star. Other counts in equity were brought for declaratory and injunctive relief, imposition of a constructive trust or equitable lien, and for specific performance.
But, the appellate court found LED’s equitable claims to be dim in that they were lacking a necessary connection to the subject property. The appellate court illuminated that LED was really seeking damages arising from mere membership interests in an LLC. In conclusion, the appellate court found that LED’s claims failed to establish a fair nexus between the equitable or legal ownership of the subject property and LED’s claim. Accordingly, the lis pendens could no longer cast a shadow on the title.