Case of the Month Kim v. New Life Oasis Church

Real estate lawsuits generally do not stay confined to court. They spill into the public record. Indeed, a lis pendens is a recorded notice that tells the world a lawsuit has been initiated that involves a piece of real property. This month’s case asks the question, can recording a lis pendens (the Latin term for “pending suit”) lead to liability and attorney-fee damages, or does the litigation privilege protects a plaintiff who files a lis pendens.

California’s litigation privilege shields communications made in connection with judicial proceedings. Courts treat a lis pendens like a republication of the lawsuit itself. If the lis pendens identifies a real case already filed and the claims in that case affect title to real property, then the privilege usually blocks later claims such as slander of title or abuse of process.

The story here shows why the rule exists. A long-running property fight between church groups ended up involving an attorney, who sought unpaid legal fees. The attorney sued for his fees and recorded a lis pendens tied to ongoing litigation about ownership and title. The opposing side claimed the lis pendens was wrongful and damaged the property’s marketability. The Court of Appeal disagreed. It held that because the lis pendens was directly connected to an actual lawsuit affecting title, it was privileged. In other words, the law protects the act of giving public notice of a legitimate property dispute, even if that notice makes the property harder to sell or finance while the case is pending. Indeed, one of the main purposes of a lis pendens is to stop a sale that would impair the rights of a rightful claimant.

As the court explained in its rule, the litigation privilege related to a lis pendens is not unlimited. If someone records a lis pendens without a real property claim, or to harass, courts can expunge it and impose sanctions. But when the lawsuit genuinely concerns title or ownership, the privilege is strong because the legal system wants people to be able to pursue claims without fear of being sued later for simply recording notice.

The conclusion is that a lis pendens tied to a real property lawsuit is protected by the litigation privilege. The remedy for an improper lis pendens is typically to remove it through the court, not to sue for damages afterward. For real estate consumers, this matters because a lis pendens can freeze a deal instantly. Buyers, sellers, and lenders need to understand that if the lis pendens is linked to a legitimate title dispute, it may be legally shielded, and the practical risk to a transaction is real.