The Challenge
Under the parties’ written joint venture agreement, the other investor acquired title to the property while Nochumson P.C.’s client managed and financed substantial portions of the renovation work.
Disputes later arose during construction when the titled investor denied the client access to the property and refused to allow the renovated property to be listed for sale.
At the same time, the lender holding a mortgage against the property threatened foreclosure, creating additional pressure on the project and placing the client’s investment at risk.
Because title remained solely in the other investor’s name, immediate legal action became necessary to preserve the client’s rights under the joint venture agreement.
The Solution
Nochumson P.C. filed litigation seeking to compel specific performance of the joint venture agreement and allow the renovation project to proceed as originally agreed by the parties.
To protect the client’s interest in the property during the litigation, the firm also filed and recorded a lis pendens preventing transfer of the property to third parties while the dispute remained pending.
Throughout the litigation, Nochumson P.C. additionally worked to prevent foreclosure proceedings by negotiating with the mortgage holder while aggressively pursuing the client’s claims in court.
After extensive litigation and negotiations, the parties ultimately reached a settlement allowing the client to complete the renovation work and requiring the property to be listed for sale through a mutually agreed-upon real estate broker.
Filing a lis pendens in real estate litigation can preserve a party’s claimed interest in a property and prevent transfers during disputes involving ownership or contractual rights.
The Results
Following settlement of the litigation, the renovation project was completed and the property was successfully marketed and sold.
The property ultimately sold for substantially more than initially anticipated, allowing the client to recover renovation expenses and receive her agreed share of the sale proceeds under the joint venture agreement.
